Analysis of gender pay gap reports submitted recently by large-scale employers in Ireland has revealed the difference between what men and women are paid on an hourly basis declined marginally last year but large discrepancies still exist in certain industries.
The research, conducted by PwC Ireland, reveals that in the more than 550 companies obliged to publish gender pay gap reports recently, the hourly gap stood at 11.2 per cent last year, down from 12.6 per cent last year.
Nationally, the most recently available data from the Central Statistics Office shows the mean gender pay gap — a metric that compares the pay of all men and women, rather than just those working in similar jobs, with similar experience, skills and qualifications — stood at 9.6 per cent in 2022.
For the second year in a row, companies with more than 250 employees in 2023 were obliged to file reports analysing their organisation’s gender-pay dynamics by the end of December last.
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PwC’s analysis reveals that the largest gaps exist in the legal profession, where men are paid on average 35.1 per cent more per hour than women while a 33.5 per cent discrepancy exists in the aviation sector. Aviation, however, saw the largest year-on-year narrowing of the gap, which declined by 4 percentage points between 2022 and 2023.
By contrast, the gap in pay within the legal profession widened by 6 percentage points in the year, PwC Ireland said, while also worsening in the entertainment and utilities sector.
Overall, the gap is closing but progress may take time, the report indicates. It recommends that businesses commit to gender diversity, equity and inclusion initiatives and continuously monitor the effectiveness of those initiatives to carry forward the momentum.
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Yet, the narrowing headline gap is not down to any “single initiative or effort”, said report author Doone O’Doherty, people leader and workforce tax partner at PwC Ireland, warning organisations not to “jump to conclusions about the data”.
“Gender pay gaps are created by a complex combination of factors, including female workforce participation, promotion rates, allocation of performance ratings, access to the best opportunities to progress and recruitment criteria,” she said.
“In some organisations, for example, flexible working or changes to recruitment processes may have a pronounced effect.”
The report also highlights the important role that the representation of women at senior pay levels within companies can play in closing the gender pay gap.
“For example, 24 per cent of the total workforce in construction and engineering companies that reported gender pay gap numbers in December 2023 were females, with most of these in the lower and lower middle quartile,” according to the report. “On the other hand, 50.8 per cent and 69.5 per cent of the total workforce in retail and healthcare respectively were females.”
Some 75 per cent of companies analysed demonstrated a greater relative concentration of males in the “highest-paid” quartile.
In 2024, companies with more than 150 employees will be required to submit gender pay gap reports by year-end.
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