EU Pay Transparency: An Introduction for Employers and Human Resources Teams
- eoindriver123
- Jul 10
- 4 min read
Updated: Jul 11
Ireland Must Enact EU Pay Transparency Directive by June 2026
Published: 10th July 2025
Author: Eoin Driver, Talent Leader, Optiv Talent Solutions
As someone who has worked in HR and leadership for nearly two decades and as a husband to a remarkable female leader, I’ve seen firsthand how the gender pay gap can limit potential, erode trust, and impact careers. Watching my wife navigate challenges that simply shouldn’t exist in 2025, and motivated to help build a fairer future for my daughter, this issue is deeply personal to me.
That’s why I’m genuinely optimistic about the positive change the EU Pay Transparency Directive will bring. It's a significant step toward fairness, accountability, and closing the persistent gaps that have held too many people back for too long. I'm proud to support its implementation and share this important development with you.
This article introduces the directive for employers and HR teams to consider as they begin planning for compliance. It covers the following key areas:
Purpose of the Directive
Key Provisions for Irish Employers
Preparation Steps for Employers
Insights and Conclusion
What is the Purpose of the Directive?
The EU Pay Transparency Directive aims to:
Enhance pay transparency
Strengthen equal-pay rights
Mandate gender pay gap reporting
Prohibit pay secrecy
Support employee access to pay-related information
Key Provisions for Irish Employers
1. Salary Must Be Clear in Job Ads
Employers must include a salary range in all job advertisements.
2. No Asking About Previous Salary
Employers will no longer be permitted to ask candidates about their current or past salaries.
3. Employees Can Request Pay Comparison Information
Employees will have the right to ask:
What is included in their own salary package
What others earn on average in similar roles, broken down by gender
4. Pay Transparency Discussions Allowed
Employers cannot prohibit employees from discussing their salaries with each other.
5. Mandatory Gender Pay Gap Reporting
Reporting obligations based on company size:
250+ employees: Annually
150–249 employees: Every 3 years
100–149 employees: Every 3 years, starting in 2031
Reports must include:
Pay levels; Job classification; Pay progression; All data broken down by gender
6. Action Required for Gaps Over 5%
If a gender pay gap of 5% or more exists in similar roles, and the employer can't justify or resolve it within six months, they must conduct a joint pay assessment with employee representatives
7. Burden of Proof Shifts to Employers
In pay discrimination claims, the employer must now prove there was no discrimination.
8. Fines and Compensation for Non-Compliance
Non-compliant companies may face:
Financial penalties
Compensation claims from affected employees
Preparation Steps for Irish Employers
To prepare for the directive, companies should begin by:
Know Your Numbers: Review current salaries and ensure any differences are justifiable.
Review Job Architecture: Align job roles and grades with equal-value principles.
Create Clear Job Descriptions: Define responsibilities and required skills transparently.
Set Transparent Pay Criteria: Base pay on experience, qualifications, or performance, not negotiation.
Update Hiring Practices: Remove questions about past salary. Provide salary ranges in job ads.
Amend Contracts and Policies: Eliminate clauses that restrict employees from discussing pay.
Prepare to Share Pay Information: Respond to employee pay data requests and prepare for external reporting.
Train HR and Managers: Ensure your leadership team understands new legal obligations.
Conduct Pay Audits: Proactively identify and correct any unjustified gaps.
Insights and Conclusion
As a HR leader with experience dealing with global pay equity issues, I welcome the EU Pay Transparency Directive. It’s a major step forward — but is it enough?
Yes, it’s a strong foundation, and long overdue. By shifting the burden of proof to employers, removing the secrecy around pay, and making salary ranges public, it tackles the cultural and structural issues that allow pay inequality to persist. But legislation alone won’t close the gap. Real change requires mindset shifts and a proactive approach to fairness, not just compliance.
Are employers ready? For many, the answer is: not yet. While larger organisations may already be gathering gender pay data or reviewing pay policies, most companies, especially SMEs, have yet to fully grasp the operational, cultural, and legal changes this directive demands. HR teams need time, training, and cross-functional support to get this right.
The clock is ticking — Ireland has until June 2026 to enact this into national law. That may feel like plenty of time, but implementing transparent pay structures, rewriting policies, and changing how hiring and reward decisions are made takes careful planning and time.
Don’t wait for the legislation — start now.
The organisations that act early will not only avoid risk. They’ll build trust, boost engagement, and position themselves as true employers of choice.
Let’s Start the Conversation
If you have feedback on this article, or if you’re interested in exploring how Optiv Talent Solutions can support your organisation in preparing for the EU Pay Transparency Directive, I’d love to hear from you.
Eoin Driver
Talent Leader, Optiv Talent Solutions
+353 83 203 8121
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