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With the introduction of new pay transparency obligations on the horizon, many Irish Organisations are beginning to assess how their current pay structures, reporting processes and
internal data systems will stand up to increased scrutiny in the years ahead.

As more Organisations reach out to seek guidance from our reward experts at Adare Trusted People Partners, we have been tracking the wide range of practical questions being raised by management teams about what these changes will mean in practice. Common queries include how ‘pay’ will be defined, how quickly Employers must respond to Employee requests for pay information, and how equal pay claims may evolve once the new rules take effect.

We are continuing to support Organisations across the country as they prepare for these forthcoming pay transparency requirements. Below we address some of the most common
queries from Organisations who are beginning to navigate their evolving pay transparency obligations.

When will the Irish legislation transposing the Directive into domestic law be confirmed?
The Government’s Spring Legislation Programme included the following employment law Bills which it is expected will transpose the EU Pay Transparency Directive into Irish law.

• Gender Pay Gap Information (Amendment) Bill
• Pay Transparency Bill

Neither of these Bills appear on the Priority Publication or Priority Drafting Lists and there are therefore no clear timelines on when these Bills might progress.

Do Organisations that were within the scope of the gender pay gap reporting regulations in 2025 report again in 2026 under the existing rules or should they wait until the details of the enhanced gender pay gap reporting are confirmed?
The Government has published Regulations governing gender pay gap reporting at the end of May each year there has been a change in reporting requirements. There is currently no timeline setting out when the Irish legislation transposing the Directive’s additional gender pay gap reporting requirements will come into effect and the Employment Equality Act 1998 (section 20A) (Gender Pay Gap Information) (Amendment) Regulations 2025 therefore remain in force until further notice.

What is the definition of pay? Does it include Employer pension, bonus, car allowance, and healthcare contributions or other benefits?
The Directive defines pay as ‘the ordinary basic or minimum wage or salary and any other consideration, whether in cash or in kind, which a worker receives directly or indirectly
(complementary or variable components) in respect of his or her employment from his or her employer.’ This is a broad definition that includes any other consideration, whether cash or in kind, that an Employee receives directly or indirectly in connection with their employment. Bonuses, car allowances, pension contributions, health insurance etc are all therefore likely to fall within the definition of pay.

Will an Employee be entitled to bring a claim post June 2026 for periods of employment from 2020-2026 if they find they were not receiving equal pay?
There is no time limit for equal pay claims under equality legislation, so the general limitation period under the Statute of Limitation on breach of contract applies. This means Employees must make a claim within 6 years of the disparity in pay. There is currently a six-month limitation period for Workplace Relations Commission discrimination claims that are not pay claims. Reports indicate that this existing time limit may be extended to 12 months, with a possible extension of up to 18 months in total where there is reasonable cause.

For smaller Organisations, will it be acceptable in 2026 to say that a pay transparency project to identify work categories is underway or will Employees be entitled to seek pay information immediately?
The Directive stipulates that Organisations must reply to Employee requests for pay information within two months of receiving such a request. While post 7th of June 2026, the Employee will have a legal right to receive pay information within two months of making a request, it may be possible to agree a longer timeline with individual Employees to allow the necessary data to be extracted.

Practical Steps to Take Now
While many of the detailed provisions of the new pay transparency framework are still being finalised at national level, the direction of travel is clear. Employers will face increased obligations around pay reporting, transparency and the ability to objectively justify differences in pay between Employees doing work of equal value.
Organisations that begin preparing now by reviewing pay structures, strengthening job evaluation processes and ensuring the integrity of their pay data will be far better positioned to respond confidently when the new requirements come into force. Taking a proactive approach today will help avoid a hurried reactive response later and will place Organisations on a stronger footing to demonstrate fairness, transparency and compliance in the years ahead.

How Adare Can Help
Preparing for the new legal framework being introduced by the EU Pay Transparency Directive requires more than a policy update, it requires confidence in your pay structures, your pay data and your decision-making processes.

We support Irish Organisations by:
• Assessing readiness for Employee pay information requests
• Supporting the development of clear job architecture and role categorisation aligned with ‘work of equal value’ principles
• Reviewing pay structures, pay ranges and progression frameworks to ensure they are objective and defensible
• Conducting pay risk and equal pay assessments ahead of Employee requests
• Advising on practical processes for responding to pay information requests clearly, consistently and compliantly
• Supporting HR and leadership teams with guidance, training and communications as pay transparency obligations evolve

Adare is a team of expert-led Employment Law, Industrial Relations and best practice
Human Resource Management consultants. If your Organisation needs advice, support, or
guidance about pay transparency compliance requirements or any HR issues, please
contact Adare by calling (01) 561 3594 or emailing info@adarehrm.ie to learn what services
are available to support your business.