Pay transparency is becoming a defining feature of modern workplaces, driven by the EU Pay Transparency Directive, which came into force in June 2023. By June 2026, all EU Member States must implement these rules, reshaping how organisations communicate pay, address inequalities, and support workers’ rights.
Pay transparency aims to close unjustified pay gaps by ensuring employees have clear, accessible information about how pay is determined and how their salary compares to others performing similar work.
Key Elements of Pay Transparency
- Clear salary information must be provided to job candidates, and employers can no longer ask about salary history.
- Gender neutral job ads and titles are required to promote fairness from the outset.
- Employees gain the right to request pay information, including salary ranges and comparisons by sex for similar roles.
- Pay secrecy clauses are prohibited.
- Mandatory gender pay gap reporting applies in Ireland from 2025 for organisations with 50+ employees.
- Joint pay assessments are required where unexplained gender pay gaps of 5% or more persist.
- Stronger protections in discrimination cases, including shifting the burden of proof to employers.
- Robust enforcement mechanisms, including compensation, court access, and structural reform orders.
If you require further support or advice relating to HR, please do not hesitate to contact us at hrsolutions@nfpireland.ie / (066)7102887.
For more information visit https://nfpireland.ie
~ Caroline Reidy, Head of NFP HR Solutions Ireland Limited, HR and Employment Law Specialist