Ireland's Gender Pay Gap Information Act 2021: A Step-By-Step Guide

 

As Ireland strives towards a more equal society, one of the most crucial challenges we face is the gender pay gap. Despite some progress in recent years, women still earn less than men on average in many industries and countries.

We firmly believe that every employee deserves to be compensated fairly and equitably for their work, regardless of gender. And with the introduction of the Gender Pay Gap Information Act 2021 Regulations, it is now mandatory for all organisations with over 250 employees in Ireland to report on their hourly gender pay gap. 

This legislation is a crucial step towards closing the gap across the country and should be welcomed by Firms across all industries. However, as failure to comply with this legislation can lead to serious legal consequences, including the possibility of applications to the Circuit Court or High Court by the Irish Human Rights and Equality Commission, as well as investigations by the Workplace Relations Commission, it is worth taking the time to understand what is required from your business fully. 

 To help organisations meet this new regulation, we have compiled a list of the seven essential steps that must be taken.

 

Step 1: Determine if Your Business Must Comply 

The first step is to determine whether your business is required to comply with the Gender Pay Gap Information Act 2021. The regulations apply to companies with 250 or more employees. If your business meets this criterion, you must follow the steps outlined below.

 

Step 2: Collect Relevant Data 

To report on the gender pay gap within your organisation, you must extract employee data commonly used in human resources and payroll systems to track and manage employee information which will be used as the foundations of the payroll calculations and Gender Pay Gap report.

 

Step 3: Analyse and Calculate the Gender Pay Gap 

Using the data you've collected, calculate the mean and median pay gap, the mean and median bonus pay gap, and the proportion of male and female employees in each pay quartile. This will provide a clear picture of your organisation's gender pay gap.

 

Step 4: Prepare the Gender Pay Gap Report 

Create a comprehensive report that includes the data you've gathered and analysed. The report should be clear, concise, and easy to understand. It should also include a statement confirming the accuracy of the information provided, signed by a director or equivalent senior employee.

 

Step 5: Publish the Report on Your Website and Submit it to the Relevant Authority 

The Gender Pay Gap Information Act 2021 requires that you publish your report on your company's website, making it accessible to the public for at least three years. You must also submit the report to the relevant authority, which is the Irish Human Rights and Equality Commission (IHREC).

 

Step 6: Address Any Identified Pay Inequalities 

If your report highlights any pay inequalities, it's crucial to take proactive steps to address them. This may involve revising your company's pay structures, adopting diversity and inclusion initiatives, or implementing training programs to support gender equality.

 

Step 7: Monitor and Review Progress 

Regularly monitor and review your organisation's gender pay gap to ensure that your efforts to promote pay equality are successful. Reviewing your data annually and adjusting your approach as needed will help you stay compliant with the Gender Pay Gap Information Act 2021.

 

Closing the gender pay gap is not easy, but it's necessary for creating a more equitable and inclusive society. By implementing these steps, organisations can take meaningful action towards closing the gender pay gap and promoting fairness and equality in the workplace.

If you would like to talk to us about creating an accurate report for your organisation, please contact us at DataSolutions@bdo.ie and a member of our expert team will be in touch with you.