Gender Pay Gap
The gender pay gap is the difference in the average hourly wage of men and women across a workforce. It compares the pay of all working men and women; not just those in similar jobs, with similar working pattern or with similar competencies, qualifications or experience.
The gender pay gap persists in Ireland, despite ongoing efforts to achieve equal pay for equal work. While recent developments show progress, there's still work to be done to ensure a level playing field.
December 2023 saw the second annual deadline for companies employing over 250 people to disclose their gender pay gaps under the Gender Pay Gap Information Act 2021. To date, figures have been disclosed by over 550 companies.
According to the Central Statistics Office (CSO), Ireland's national gender pay gap stood at 9.6% in 2022. This means, on average, full-time male employees earned 9.6% more than their female counterparts. This figure reflects a long-term trend, although recent policy changes aim to bridge the gap.
A significant development came in 2024 with the expansion of mandatory gender pay gap reporting. Previously applicable only to companies with 250 or more employees, the threshold has been lowered to 150 employees. This increased transparency allows for better monitoring and public scrutiny of pay practices.
The gender pay gap varies across sectors. In 2022, the CSO reported the highest gap (24.7%) in the financial, insurance, and real estate sectors. Conversely, the education sector boasted the lowest gap (2.7%).exclamation These figures highlight the need for targeted interventions within specific industries.
Several factors contribute to the gender pay gap. These include:
Occupational Segregation: Women tend to be concentrated in lower-paying sectors like education and care, while men dominate higher-paying fields like finance and technology.
Part-Time Work: Women are more likely to work part-time due to childcare responsibilities, impacting their overall earnings.
The Motherhood Penalty: Women may experience career interruptions or slower career progression due to childcare responsibilities, affecting their earning potential.
Closing the gender pay gap requires a multi-pronged approach. Here are some key strategies:
Continued Enforcement of Gender Pay Gap Reporting: Transparency is crucial to identify and address pay discrepancies.
Policies Supporting Work-Life Balance: Affordable childcare options and flexible working arrangements can help women stay in the workforce and advance their careers.
Investment in STEM Education for Girls: Encouraging girls to pursue careers in science, technology, engineering, and math can open doors to well-paying jobs traditionally held by men.
Addressing Unconscious Bias: Training for employers and employees can help mitigate unconscious bias that can disadvantage women in the hiring and promotion process.
Notwithstanding the size of the gender pay gaps in companies or across sectors, the reporting legislation has achieved its objective of requiring companies to be more transparent about their gender pay gap and outline what they are doing to fix it.
With the first year of reporting behind them, some companies may feel that the biggest challenge of gender pay gap reporting has been dealt with. In fact, it is only starting. The December 2022 report was only the first step in a challenging journey to foster diversity and inclusion in our workplaces.
Businesses are required to file their 2023 gender pay gap reports in December 2023, based on their snapshot date from June 2023. Smaller organisations with 150 or more employees will have to report from 2024 onwards.
If you have any questions on the Gender Pay Gap or any of the issues in the article please get in touch.