Pay transparency in Ireland: a quick snapshot
A small number of Irish and EU indicators highlight why pay transparency is rising on the employer agenda:
- 2023: The EU Pay Transparency Directive was adopted, with Member States required to transpose it into national law by June 2026.1
- CSO data shows that a gender pay gap remains in Ireland, supporting the policy case for increased pay transparency.3
- The Directive introduces four core measures: pay information for job applicants, employee access to pay data, restrictions on pay secrecy clauses and expanded pay reporting obligations.4
- Once implemented, these measures are expected to operate alongside the Gender Pay Gap Information Act 2021.5
Step one: understand your pay data
The Directive highlights the importance of reliable, comparable pay information. Employers may wish to review the quality, structure, and accessibility of their pay data.
This can include reviewing base pay, variable pay and other remuneration components across roles and grades and assessing whether data is sufficiently robust to support future reporting or information requests. Early identification of patterns or inconsistencies can inform any further review or remediation.
Clear role definitions and job structures can also support more effective analysis and governance of pay outcomes.
Step two: review policies and processes
Pay transparency places increased focus on both pay outcomes and the processes by which pay decisions are made. Employers may wish to review recruitment, pay review, promotion, and progression processes to ensure they are clearly documented, consistently applied, and aligned with objective criteria.
Policies relating to recruitment advertising, performance management and remuneration governance may also warrant review considering forthcoming transparency obligations. Clear internal documentation supports organisational consistency and provides a reference point for managers and employees.
Taking a structured approach to policy review can help ensure that any changes are proportionate and aligned with broader governance frameworks.
Step three: prepare managers for pay-related conversations
Managers are likely to play a leading role in communicating pay-related information in a more transparent environment. Providing managers with appropriate guidance and training can help ensure that discussions are managed consistently and appropriately.
This may include ensuring managers understand organisational pay frameworks, escalation processes and the limits of their role when responding to pay-related queries. Clear internal guidance can help reduce the risk of miscommunication and support fair and respectful workplace interactions.
Why early preparation may be beneficial
Considering pay transparency principles at an early stage may help organisations integrate future requirements into existing governance, HR and risk management frameworks.
Proactive planning can support compliance readiness, enhance internal clarity and reduce the likelihood of time-pressured decision-making closer to statutory deadlines.
How NFP Ireland can support organisations
NFP Ireland works with organisations across Ireland to provide practical HR and governance support in areas including reward structures, policy review and manager capability.
Our HR Solutions team can assist with pay data reviews, policy assessments and preparation planning, helping organisations take a measured and compliant approach as legislative developments progress.