Ireland: Update on the EU Pay Transparency Directive 2023/970, Transposition in Ireland and What Employers Can Expect
The EU Pay Transparency Directive 2023/970 is to be transposed in Ireland by June 2026. The Irish Government has now announced that it will not be able to meet this transposition date and that this directive will be implemented on a phased basis instead.
EU Member States have until 7 June 2026 to implement the EU Pay Transparency Directive 2023/970 (the “Directive”). The Directive aims to enhance pay transparency and improve access to redress for workers who allege gender-based pay discrimination. The Directive also requires employers to report on the gender pay gap between categories of workers distinguished by basic and variable pay. The implementation is intended to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women.
In Ireland, the draft Equality and Family Leaves (Miscellaneous Provisions) Bill 2024 (the “EFL Bill”), together with the proposed Pay Transparency Bill (a draft of which has not yet been published) are currently intended to transpose the Directive in Ireland. We do not currently have any guidance as to when the Pay Transparency Bill will be published but the Department of Children, Disability and Equality recently acknowledged that the Directive will not be transposed in Ireland by 7 June next and that implementation of the Directive will happen on “a phased” basis. We do not have any guidance as to what this phased basis will look like, and the Government’s Spring 2026 Legislative Programme indicates that the Pay Transparency Bill is not listed as a priority for drafting.
In respect of what employers can expect from the EFL Bill’s transposition of the Directive. Head 4 of the EFL Bill amends Section 10 of the Employment Equality Act 1998 (the “1998 Act”), transposing Article 5 of the Directive, requiring employers to provide information about salary levels in the job advertisement. The EFL Bill goes beyond the right to receive pay range/rate and prohibits the advertising of a role where this information is not included. Head 5 of the EFL Bill transposes Article 5 of the Directive, creating a new Section 10A of the 1998 Act, prohibiting employers from asking job applicants about their pay history.
In 2022, Ireland implemented the Gender Pay Gap Information Act 2021 and many of the requirements of the Directive have already been met with the introduction of that legislation. However, the Directive will introduce significant additional gender pay gap reporting requirements for employers in Ireland and across Europe. Reporting on a pay gap will be mandatory under the Directive for employers with at least 100 employees, with the obligation being implemented progressively. While we do not have a draft version of the Pay Transparency Bill as of yet, it is likely that the current Irish threshold of 50 or more employees for reporting purposes will remain.
