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What employers need to know about the Gender Pay Gap Regulations

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The Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) Regulations 2022 (the “Regulations”) were published on the 3rd of June 2022.

We’ve previously reported on the introduction of Gender Pay Gap (“GPG”) reporting on International Women’s Day. Most of the detail outlined then by the Minister for Children, Equality, Disability, Integration and Youth, Mr Roderic O’Gorman, still applies.

Calculating GPG

The Regulations provide a framework for employers to calculate any GPG present within their organisations and from June companies with over 250 employees are required to report on their GPG in 2022 by law. The Regulations will extend to companies with more than 150 employees by 2024 and to companies with more than 50 employees by 2025.

It is important that employers in companies with more than 250 employees familiarise themselves with the calculations outlined in the Regulations. For example, each report is required to include the following calculations:

  • The difference between the mean hourly remuneration of relevant employees of the male gender and that of relevant employees of the female gender expressed as a percentage of the mean hourly remuneration of relevant employees of the male gender; a similar calculation should be applied to male and female part-time employees and male and female employees on fixed-term and temporary contracts.
  • The difference between the median hourly remuneration of relevant employees of the male gender and that of relevant employees of the female gender expressed as a percentage of the median hourly remuneration of relevant employees of the male gender; a similar calculation should be applied to male and female part-time employees and for male and female employees on fixed-term and temporary contracts.
  • The mean, median, and percentage of bonus and benefit in kind payments of male and female employees.
  • Information on employees by gender who fall into lower, lower middle, upper middle and upper quartile pay bands.

Source: Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) Regulations 2022

Publishing the report and written employer statements

From June 2022, employers with more than 250 employees are also required to publish their GPG reports on their website, or where they do not have a website, in physical form. These reports must remain available to view for three years from the date of publication. The reports must be published or made available no later than six months after the relevant time period covered in the report.

What’s more, each employer publishing a report must include a written statement listing the reasons for any differences in pay between male and female employees.

If required, the statement should also include measures that have been taken to rectify any gender-based gaps.

Employers must prepare

It’s essential that employers are familiar with the Regulations, including calculations, timelines and publication requirements for GPG reporting. Employers will need to understand the calculations required and have processes and reporting mechanisms in place to ensure they are compliant.

About the Author: Nikita Kelly, Solicitor on the Employment Team