Why pay transparency is a clear winner 

The call for greater pay transparency has gained significant momentum across the globe, and Ireland is no exception. As the workforce evolves, so do the expectations of employees, who now demand greater openness regarding pay structures.  

This shift towards pay transparency is backdropped by Ireland’s ongoing cost of living crisis, with financial pressures demanding a more urgent need to understand a job’s exact remuneration. But wages are far from a clear picture, and a gender pay gap persists.  

Drawing on insights from our Ireland Salary and Recruitment Trends Guide 2025, backed by the views of over 1,000 employers and professionals across Ireland, we examine perceptions on pay transparency, and the benefits employers stand to gain from enacting fairer pay policies. 

Poor pay transparency could hinder hiring 

Pay transparency is clearly important to professionals, yet employers may be lagging behind this growing expectation. According to our Salary Guide research, four-in-five (80%) Irish professionals believe it is important for their organisation to be transparent about how pay levels and pay rises are set. However, employees are in two camps regarding their boss’ dedication to transparent pay, with less than half (49%) believing their organisation is consistently transparent in this regard. 

A lack of pay clarity could be impeding hiring plans, with almost half (49%) of professionals saying they wouldn’t consider applying to an organisation without a salary on the job description. Despite this, 47% of private sector organisations say they withhold salary information from their job descriptions – a decision that’s likely to erode trust and deter prospective candidates in a competitive hiring market. 

For professionals seeking a new job or a pay rise, but fed up with salary secrecy, our salary calculator provides insights into earnings compared to the highest, typical, and lowest ranges. 

Transparency is key to closing the gender pay gap  

A lack of pay transparency is a leading factor behind Ireland’s gender pay gap, which according to the Central Statistics Office (CSO), was 9.6% in favour of men in 2022. While not quite as pronounced as the EU average (12.7%), there’s still much progress to be made when closing the gender pay gap. Moreover, this inequity only becomes more apparent when considering the country’s top earners; despite making up half of the Irish workforce, CSO reports that women consist of just a quarter of the top 1%.  

However, with new EU legislation is on the horizon, Irish employers will face increased scrutiny when it comes to fairer pay. 

New pay transparency rules are within sight  

If the cultural and talent attraction benefits of fielding a clear pay agenda weren’t convincing enough, incoming legislation may force employers’ hands. The EU Pay Transparency Directive, adopted by the European Parliament in 2023, mandates significant changes for member states, including Ireland. This directive aims to ensure equal pay for equal work and help close the gender pay gap across the EU.  

By June 2026, Irish employers will need to comply with new rules that include gender pay-gap reporting and providing pay range information during recruitment. Given the scale of these measures, it’s highly advisable that employers plan ahead and start promoting pay transparency today. 

How to implement fairer pay practices 

When employees understand how their pay is determined, they are more likely to feel valued and motivated, leading to higher productivity and lower turnover rates. But despite the business case to dispense compensation fairly – and the growing legal burden – over half (54%) of organisations say they haven’t taken measures to ensure consistent pay transparency.  

While implementing effective pay transparency can be challenging, the following steps can put organisations on the right path: 

• Conduct a pay audit: Start by reviewing current pay structures to identify any disparities, analysing pay data across different roles, departments, and demographics. When looking to benchmark your salaries, consider employing the services of an impartial provider. Our dedicated research team at Hays can help organisations understand their current pay picture, offering the data and market insights needed to design a competitive yet fair salary strategy. 

• Be upfront when hiring: Avoid filling your job descriptions with ambiguous phrases such as ‘competitive salary’ and ‘comprehensive benefits package’ and instead look to display accurate salaries upfront – even if these are just ranges to begin with.  

• Train your managers: People managers are often at the frontline of pay transparency flashpoints, and it’s essential that they’re equipped with the skills and knowledge to confidently discuss pay with their teams. This might include training on how to explain pay decisions and handle sensitive salary conversations, along with instruction regarding the latest legislation. 

• Monitor and adjust: Continuously monitor pay practices to ensure they remain fair and transparent, being prepared to adjust as needed to address any new disparities that arise, while keeping in line with the latest market considerations. 

Get crystal clear on pay 

Salary transparency is more than just a compliance requirement; it’s a strategic advantage that can help Irish employers build a more equitable and motivated workforce, and empower professionals to make more informed career decisions.  

And as Ireland moves towards implementing the EU Pay Transparency Directive, now is the time for employers to take proactive steps to ensure they are ready for this new era of openness and fairness in the workplace. 

Access our Ireland Salary and Recruitment Trends Guide 2025 to find out more about the future of salaries and the wider job market