In the struggle for gender equality, progress has been made in many parts of the world. However, the journey towards equal pay is not yet complete.
The gender pay gap remains a persistent issue in Ireland, where women continue to earn less than their male counterparts. This gap is estimated at 12.6% for average salaries and 22.9% for bonuses, with women earning €0.87 for every €1 earned by men.
The gender pay gap is a complex issue, with multiple factors contributing to its persistence. Under-representation of women in senior, higher-paying roles is one of the main issues, as well as sectoral differences.
Despite legislation in place, the gap persists, and smaller firms will also be required to disclose data from 2024 in Ireland. In this article, we will explore the current state of pay disparities, the factors contributing to the gap, and the legislative and reporting requirements in place to address this issue.
Current Pay Disparities
The gender pay gap in Ireland remains a significant issue, with women earning an estimated 12.6% less in average salaries and 22.9% less in bonuses than their male counterparts. This gap is not necessarily an indication of pay discrimination, but rather a result of under-representation of women in senior, higher-paying roles and sectoral differences.
The finance, banking, insurance, legal, and construction sectors have the widest gender pay gaps, while the retail, health, and charity organizations have the lowest gaps.
In 87% of companies, men were paid more than women on average, and 82% of firms disclosed a bonus gap in favor of males. Over-representation of men in senior roles results in higher bonus payments.
While gender pay gap legislation only applies to companies with 250 or more staff in Ireland, companies with 150 staff will be required to disclose data from 2024, and smaller firms with 50 or more staff are exempt until 2025.
Closing the gender pay gap will take time as it is a broader societal issue.
Factors Contributing to Gap
Factors such as under-representation of women in high-paying positions and sectoral differences have been identified as significant contributors to the disparity in earnings between male and female workers in Ireland. Women are often concentrated in lower-paying sectors such as education, healthcare, and retail, while men dominate higher-paying industries such as finance and construction. This concentration of women in certain sectors, coupled with the under-representation of women in leadership positions, leads to lower pay for women overall.
Moreover, the lack of affordable and accessible childcare options in Ireland also contributes to the gender pay gap. Women are more likely to take time off work to care for children, resulting in a slower career progression and lower earnings.
Additionally, the cultural expectation that women should take on the majority of domestic and caregiving responsibilities perpetuates gender stereotypes and hinders women’s career advancement.
Addressing these systemic issues requires a multifaceted approach that includes policies such as affordable childcare, flexible work arrangements, and greater representation of women in leadership positions.
Sectoral Differences
Sectoral disparities in job distribution have been identified as a significant contributor to the discrepancy in earnings between male and female workers in the Irish workforce. The finance, banking, insurance, legal, and construction sectors have the widest gender pay gaps, while the retail, health, and charity organizations have the lowest gaps.
This trend can be attributed to the under-representation of women in higher-paying roles in male-dominated sectors, such as finance and construction, as well as the over-representation of men in senior positions, resulting in higher bonus payments.
The lack of diversity in senior positions in male-dominated sectors perpetuates the gender pay gap in Ireland. The gender pay gap in these sectors can be attributed to a range of factors, including gender biases in recruitment and promotion processes, workplace cultures that are unwelcoming or hostile to women, and a lack of flexibility in work arrangements.
To address the gender pay gap, it is crucial that companies in male-dominated sectors take active steps to promote gender diversity and implement policies that support work-life balance and flexible working arrangements.
Legislation and Reporting Requirements
Legislation to address pay disparities in the workforce has been implemented in Ireland, with reporting requirements for companies with 250 or more staff. The legislation aims to increase transparency and accountability in pay practices and encourage companies to take action to close the gender pay gap.
Companies are required to report on their gender pay gap annually, including information on average hourly rates of pay for male and female employees, the proportion of male and female employees in each quartile of the pay distribution, and the gender pay gap for bonuses. Reports must be made public on the same date in December.
By 2024, companies with 150 staff will also be required to disclose their data, further increasing the number of companies subject to reporting requirements. However, smaller firms with 50 or more staff are exempt until 2025, which has been criticized by some as perpetuating the gender pay gap in smaller businesses.
It remains to be seen how effective the legislation and reporting requirements will be in closing the gender pay gap, but it is a step towards greater transparency and accountability in pay practices.
Moving Towards Equal Pay
Efforts to address disparities in wages between male and female employees have been made by Irish businesses through initiatives such as increasing the representation of women in senior roles and providing equal opportunities for career advancement.
In order to achieve equal pay, companies must address systemic barriers that prevent women from advancing in their careers. This includes creating more flexible work arrangements, offering training and development programs, and implementing policies that promote work-life balance.
However, achieving equal pay requires a broader societal shift towards valuing and supporting women in the workforce. This includes addressing gender stereotypes and biases, promoting women’s leadership, and creating a more inclusive workplace culture.
It is important for businesses to recognize that the gender pay gap is not just a women’s issue, but a business issue that affects the competitiveness and sustainability of their organization. By taking proactive steps towards achieving equal pay, businesses can create a more diverse, equitable, and productive workforce.
