Starting June 2025, Ireland will lower the threshold for gender pay gap reporting to include organisations with 50 or more employees. This significant change means many more businesses, especially small and medium-sized enterprises (SMEs), must prepare to meet the requirements of the Gender Pay Gap Information Act 2021.

Under this legislation, employers are required to report on gender differences in hourly pay, bonuses, part-time and temporary roles, and the distribution of male and female employees across four pay bands. Alongside this data, companies must provide a clear narrative explaining any pay gaps and detailing the measures they plan to take to address these disparities.

Key changes coming in 2025 include:

• New threshold: Organisations with 50 or more employees must now comply.

• Deadline shift: Reports based on a June snapshot date must be published by November each year.

• Launch of a public reporting portal :A new government-run online portal will launch in autumn 2025, allowing organisations to submit their reports and making gender pay gap data publicly accessible. This will increase transparency and enable easier benchmarking across industries.

Currently, there are no financial penalties for failing to comply with the reporting requirements. However, non-compliance carries risks including reputational damage and possible legal challenges. Employees can raise claims through the Workplace Relations Commission (WRC), which can enforce compliance orders. Furthermore, the Irish Human Rights and Equality Commission can take cases to the Circuit or High Court. Financial penalties are expected to be introduced from June 2026 with the implementation of the EU Pay Transparency Directive, which will strengthen enforcement.

The gender pay gap reporting process provides an important opportunity for employers to examine their workplace policies and practices. Pay disparities often stem from wider issues such as unequal access to leadership roles, career progression barriers, or unconscious bias in recruitment and promotion, not just direct pay differences.