Impact of Gender Pay Gap Reporting – Deadline Fast Approaches
In 2025, the Employee threshold triggering the requirement to publish a gender pay gap report moves from Organisations with 150 or more Employees to those with 50 or more Employees. According to Department of Children, Disability and Equality estimates, the reduced Employee threshold will bring as many as 6,000 Organisations within the scope of the Gender Pay Gap Information Act 2021. With many businesses preparing to publish a gender pay gap report for the first time this year, this article will explore the key aspects of compliance with the legislation as well as best practice measures around using gender pay gap reporting as a strategic HR tool.
Compliance with the Regulations
The most recent Regulations governing gender pay gap compliance were published in May 2025.
Where an Organisation is required to produce a gender pay gap information report, the Regulations set out the following steps:
1. The Organisation’s gender pay gap calculations will be based on their Employees' remuneration for the 12-month period preceding a chosen snapshot date in the month of June.
2. For each person employed on the snapshot date, calculate their total ordinary pay, total bonus, identify benefits-in-kind (the 2024 Regulations widened the definition of “benefit in kind” to include share options and interests in shares) received and determine their total number of working hours worked for the reporting period. Calculate their hourly remuneration and note which Employees were full-time, part-time or on fixed-term contracts over the reporting period.
3. Calculate the % of male and of female Employees who were paid bonuses.
4. Calculate the % of male and of female Employees who received benefits in kind.
5. Organise the Employees into quartiles based on hourly remuneration of all male & female Employees and calculate the proportions of male and female Employees in each quartile.
6. Calculate the mean hourly remuneration of male and of female Employees, then calculate the gender pay gap in mean hourly remuneration of all Employees. Do the same for male and female part-time Employees and for male and female Employees on temporary contracts.
7. Calculate the median hourly remuneration of male and of female Employees, then calculate the pay gap in median hourly remuneration of all Employees. Do the same for male and female part-time Employees and for male and female Employees on temporary contracts.
8. Calculate the mean bonus remuneration of male and of female Employees, then calculate the pay gap in mean bonus remuneration of all Employees.
9. This year, the reporting deadline moves to November, a month earlier than previous years. Organisations must bear this tighter timeframe in mind. By way of example, if an Employer selects 17 June 2025 as their snapshot date, the gender pay gap report must be published no later than 17 November 2025.
10. As well as the required metrics, gender pay gap reports must also include the reasons a gender pay gap has developed in the Employer’s opinion and measures being taken by the Employer to reduce any gender pay gap that exists.
While large Organisations have the resources and infrastructure to comply with the gender pay gap reporting regulations, those with smaller headcounts face more significant challenges where they do not have extensive data management systems for instance. Ensuring your business views the gender pay gap reporting requirement not just as a legal obligation but as a strategic opportunity for growth will assist with greater pay transparency understanding. Organisations that invest in closing the gender pay gap often see improvements in Employee morale, engagement, and overall performance.
Strategic HR Considerations
So, while the introduction of gender pay gap reporting requirements means additional administrative and financial costs to gather, analyse, and report the required pay data, there are several long-term benefits associated with ensuring compliance:
1. Promoting a More Inclusive Workplace: All Organisations benefit from promoting gender equality by addressing pay disparities. With the increased focus on gender pay gap reporting, Organisations are incentivised to foster an inclusive culture where Employees are paid fairly for their work.
2. Improved Talent Retention and Recruitment: As jobseekers gain more pay transparency rights in the coming years, Organisations that disclose their gender pay gaps and make efforts to close them may have a competitive edge in attracting candidates to fill vacancies. Conversely, failure to address the issue could result in losing out on skilled Employees who value transparent pay practices.
3. Enhanced Reputation: Compliance with the gender pay gap regulations helps foster a reputation as a fair Employer that is committed to diversity and inclusion. This can be vital for attracting Employees with the values required for working within your sector.
Is Your Gender Pay Gap Report on Track?
Gender pay gap reporting is a technical area of compliance and with the reporting deadline moving a month earlier this year, it is vital that in-scope Organisations ensure they are devoting enough resources to what can be an involved and specialised process.
As the November publication date is fast approaching, Organisations should consider seeking external support to ensure compliance with their gender pay gap reporting obligations. As well as the technical pay data analysis, senior leadership teams need to consider the narrative that will be included in the report considering any relevant industry or workplace factors that might explain the existence of a gender pay gap that emerges from the data. This narrative should also outline any steps the Organisation might commit to in an effort to reduce any gender pay gaps.
How Adare’s Gender Pay Gap Service Helps
Reporting on the gender pay gap is not straightforward. A considerable amount of data must be gathered, analysed, and produced in a detailed report along with the actions to be taken after the report has been published.
Adare understands the pain points and potential pitfalls Organisations face and offer a solution that:
• Analyses your Organisation’s pay data
• Identifies pay disparities and provides clear pay insights
• Prepares your Organisation’s gender pay gap report in a format that is ready for publication
Adare is a team of expert-led Employment Law, Industrial Relations and best practice Human Resource Management consultants. If your Organisation needs advice, support, or guidance about compliance requirements or any HR issues, please contact Adare by calling (01) 561 3594 or emailing info@adarehrm.ie to learn what services are available to support your business.