Pay Transparency in Ireland: What It Means and What’s Changing

From June 2026, employees in Ireland will gain powerful new rights to see how their pay compares with colleagues doing the same or similar work. Job seekers will also see clear salary ranges upfront, and employers will no longer be able to ask about past pay history. These changes are part of a major shift towards pay transparency, designed to expose hidden inequalities and ensure fairer pay practices.

Ireland has already started this journey with gender pay gap reporting, but the upcoming EU rules — now being transposed into Irish law — will go much further. They will touch almost every stage of employment: from recruitment and contracts to how promotions and pay rises are explained.


What is Pay Transparency

“Pay transparency” means making information about wages and salaries openly available, whether to prospective employees or to current staff. It includes:

  • Publishing salary ranges in job adverts
  • Banning questions about previous pay during recruitment
  • Granting employees access to criteria for pay setting and progression
  • Allowing staff to see average pay levels for comparable roles, broken down by gender
  • Prohibiting secrecy clauses that stop employees from discussing pay

The aim is to close hidden gaps, particularly the gender pay gap, and give workers fairer negotiating power.


Current Situation in Ireland

Gender Pay Gap Reporting

Since the Gender Pay Gap Information Act 2021, large employers have been required to report annually on pay differences between men and women. The threshold started at 250 employees, dropped to 150 in 2024, and will fall to 50 employees in June 2025. Reports must also be published earlier, with November deadlines replacing December. Employers must explain any disparities and outline action plans (KPMG Law).

EU Pay Transparency Directive

The EU Pay Transparency Directive (2023/970), adopted in 2023, must be implemented by all member states — including Ireland — by June 2026. It introduces:

  • Mandatory salary ranges in job postings
  • A ban on requesting applicants’ pay history
  • Employee rights to access pay levels and averages by gender for comparable roles
  • Transparent, gender-neutral criteria for pay progression
  • Prohibitions on “pay secrecy” clauses
  • Stronger enforcement, including shifting the burden of proof in equal pay cases (PwC Ireland).

Draft Irish Legislation

Ireland has already started transposing the Directive. The General Scheme of the Equality (Miscellaneous Provisions) Bill 2024, published in January 2025, proposes that salary details must appear in job adverts and that employers cannot ask about pay history (McCann FitzGerald).


What is Changing

AreaChange / New RequirementImpact
Job advertsSalary or pay range must be included; no asking for pay history.Applicants have clearer expectations; employers must adjust hiring processes.
Employee rightsStaff can request their pay level, average pay of comparable roles (by gender), and the criteria used for progression.Greater openness; employers must prepare to share structured data.
Gender pay gap reportingExpands to cover employers with 50+ workers; deeper analysis required.Many more organisations will fall under reporting obligations.
Pay secrecy clausesContracts cannot restrict employees from discussing pay in equal pay contexts.Employees gain freedom to compare; employers must review contracts.
EnforcementBurden of proof shifts to employers; penalties increase.Higher legal and compliance risks for non-compliance.

Implications and Challenges

  • Data collection: Employers must develop HR systems capable of categorising roles and pay bands.
  • Privacy issues: Average pay reporting must respect confidentiality.
  • Costs: Compliance adds administrative and financial burdens, especially for medium-sized firms.
  • Culture: Transparency may reveal uncomfortable gaps but can also drive trust and fairness.
  • Legal risk: Stronger penalties raise the stakes for employers who fail to comply.

Preparing for the Future

Employers should:

  • Audit pay structures and introduce clear, objective pay criteria.
  • Analyse existing gender pay gaps and address unjustified differences.
  • Update recruitment practices and remove pay secrecy clauses from contracts.
  • Prepare staff communications to handle employee queries about pay rights.

Employees should:

  • Expect to see salary ranges when applying for jobs.
  • Know that from 2026 they can ask for average pay levels of comparable colleagues.
  • Keep records if they believe they are being paid unfairly compared to peers.

Summary

Pay transparency is reshaping the employment landscape in Ireland. What began as gender pay gap reporting for large employers is now evolving into a comprehensive legal framework where pay data will be accessible, recruitment practices will be standardised, and secrecy clauses will disappear. By June 2026, every worker will have stronger rights to see and question how pay is set — a change that could transform workplace culture, accountability, and fairness.

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