From confusion to confidence.

Your practical guide to the EU Pay Transparency Directive

We’ve answered the 10 questions Reward Directors and HR leaders ask most.

What is the EU Pay Transparency Directive?

This is a European directive designed to make pay across Europe more transparent, consistent, and fair. In Ireland, it will mean some changes to our Gender Pay Gap Reporting.

It requires companies with 100+ employees to:

Disclose gender pay gap data
Explain how salaries and promotions are determined
Use objective, gender-neutral criteria in pay decisions

Ireland already has gender pay gap reporting obligations since 2022, which will expand with the Directive in 2026. The threshold for compliance was lowered to include employers with 50 or more employees beginning in June 2025.

Explore the Top 10 FAQs

Your Top 10 questions, Answered

Our FAQ hub turns the Directive into clear, practical steps. From salary ranges to statistical methods, find clear answers you can act on.

Understanding the rules

What is pay transparency, and what does it require under the EU Directive?

Disclose salary ranges and criteria, report gender pay gaps, and base decisions on objective, gender-neutral factors. You will need to start aligning policies, data and processes.

Which employees are included in the scope of the Directive?

It covers most workers (full-time, part-time, fixed-term, agency). Genuine self-employed workers are out of scope. Reporting applies at employer level.

What counts as “pay” under the Directive?

All remuneration: base pay, bonuses, overtime, allowances, benefits-in-kind and any other monetary advantage provided by an employer.

Your Step-by-Step Gender Pay Gap Reporting Strategy

Planning, reporting, and improving your gender pay gap doesn’t have to be complicated. Our free guide breaks it down into clear, actionable steps - designed specifically for Irish employers.

What does “equal work of equal value” mean, and how do we define it?

It means comparing roles using objective, gender-neutral criteria like skills, effort, responsibility and working conditions, rather than job titles.

What is a “category of workers,” and how should we define it for reporting?

You will need to group similar jobs in a fair, consistent way. Keep categories steady over time and explain clearly how you’ve defined them.

What’s the minimum sample size for pay gap reporting, and what if we don’t meet it?

If a group is too small to protect privacy, combine it with similar roles or explain why you can’t publish a figure.

Can we still negotiate individual salaries under the pay transparency rules?

Yes - within published ranges and clear criteria. Record why decisions are made so that they’re fair and consistent.

How can companies address pay gaps without disrupting internal morale?

Share the ‘why’ before the numbers. Phase changes, protect privacy, and equip managers with talking points. Small, fair steps build trust.

How can HR balance pay transparency with employee privacy?

Share information in groups, not for individuals. Use minimum group sizes to protect privacy and explain clearly why some data can’t be shown.

"When the EU Pay Transparency Directive came out, at SD Worx, we started by unpacking the Pay Transparency directive into clear, practical steps. Our recruitment team took the lead on transparency in hiring, sharing salary information upfront, using gender-neutral job descriptions, and removing salary history questions from our process."

— Eimear Byrne, Managing Director, SD Worx Ireland

Watch how SD Worx is getting ready

At SD Worx Ireland, we’re not waiting until the last minute. We’re already adapting our recruitment, reporting, and reward processes - and we’re sharing our journey so you can learn from it, too.

Key reporting deadlines by company size

See when reporting starts for your organisation - and how often you’ll need to submit.

employees

report annually starting 2027

employees

report every 3 years starting 2027

employees

report every 3 years starting 2031

employees

no EU requirement (local rules may apply)

Learn More with the Top 10 FAQs

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