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Transparency on the gender pay gap: How Ireland compares globally

At least until recently in Ireland it was not unusual to have a boss tell you not to discuss pay with colleagues

Ireland is just the third European country to introduce paid domestic violence leave, after Italy and Spain. It’s a sad pack to lead but a necessary one given the impact domestic violence has on people’s working lives.

Of course, victims of domestic violence are not only women; however, according to the charity Safe Ireland, one in four Irish women have experienced physical or sexual violence by a partner or non-partner since the age of 15.

The introduction of five days’ paid leave here gives people time to find alternative accommodation, seek legal help or get financial advice, without putting their job at risk.

The Civil Service introduced its domestic violence policy in September.

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“This support and paid time off can help to reduce the risk of victims/survivors giving up work, and then having to face financial worries at a time when they may already feel isolated and alone,” says Mary Connaughton, director of CIPD Ireland, welcoming the move.

Similar legislation already exists in Northern Ireland as well as in Australia, Canada, New Zealand and around 25 US states.

By contrast, Ireland is somewhat behind the curve in relation to reporting on the gender pay gap. Even before the EU’s Pay Transparency Directive was finalised, giving EU member states until June 2026 to transpose its provisions into national law, around half of OECD countries already had such legislation in place.

The Gender Pay Gap Information Act was signed into Irish law in 2021 and took effect for organisations with more than 250 employees the following year.

By 2025 all employers with more than 50 employees will have to publish a range of data, including differences in mean and median hourly remuneration and bonus payments. They will have to provide an explanation for any gap that emerges and outline remedial measures to bridge it.

It’s worth noting that 92 per cent of commercial enterprises here employ less than 10 staff but now that the rubber has hit the road the impact of the legislation is emerging. Figures from CIPD Ireland, in conjunction with Industrial Relations News, suggest 41 per cent of companies can point to a more inclusive culture having taken hold in their workplace since it came under gender pay gap reporting regulations.

Just over a quarter, 28 per cent, say that having to report on a gender pay gap has led to changes in leader and manager behaviours, while 36 per cent say the requirement has led to changes in job descriptions and recruitment practices.

“We had expected the immediate impact of our gender pay gap legislation to be seen in job descriptions and recruitment practices but it’s really interesting to see it having a wider impact around issues of inclusivity and leader behaviours in Irish organisations,” says Connaughton.

“We understand that the need to sign off a legal report and action plan highlighting the gender pay gap at senior and board levels in organisations, and in particular board visibility, is driving a more inclusive culture,” she adds.

Countries including Sweden, Finland and Belgium already had strong legislation in relation to pay transparency.

“One of main causes of the gender pay gap is that people don’t know what other people earn. Removing that lack of transparency will allow women to know what others earn and therefore what they too could be earning,” says Christine Aumayr-Pintar, a senior research manager in the Working Life unit at Eurofound who specialises in gender pay transparency.

Not all countries are equally disposed to it. In Ireland, at least until recently, it was not unusual to have a boss tell you not to discuss pay with colleagues. In central and eastern Europe you will find clauses in contracts insisting you don’t.

On the other hand, in Sweden, which started pay reporting in the 1990s, there is almost full transparency. Mechanisms exist to ensure everyone can see what others earn.

The gender reporting introduced in Ireland is only a pale version of the kind of pay auditing undertaken in Sweden, where regulations apply to all employers with more than 10 staff. Despite its efforts, however, Sweden has not managed to close its gender pay gap to less than 10 per cent.

“That tells us more is needed,” says Aumayr-Pintar. “Transparency is only one element to this.”

Sandra O'Connell

Sandra O'Connell

Sandra O'Connell is a contributor to The Irish Times