Irish Employers See EU Pay Transparency Rules as Unnecessary Burden, Many Unprepared for Retirement Age Changes

A survey of 500 Irish employers by Mason Hayes & Curran solicitors revealed that over one in five consider the European Union’s pay transparency directive an unnecessary burden. This contrasts with Ibec’s public stance, where Nichola Harkin, head of employment law services, stated widespread member support for the directive’s aims, despite cautioning against heavy administrative burdens.

The EU directive mandates salary range disclosure and tougher equal pay rules to address gender pay gaps. While the Irish Government won't meet the June 7th deadline, a phased introduction is expected, starting with salary disclosure in job ads. This will force employers to justify pay structures and potentially increase some colleagues’ pay to ensure equal pay for equal work based on gender-neutral criteria.

The survey also found that 49 percent of Irish employers have not reviewed retirement policies despite imminent changes. The Employment (Contractual Retirement Ages) Act 2025, expected later this year, will allow employees to work until State pension age (currently 66), overriding historical contract clauses setting retirement at 65. Employers must objectively justify retirement ages, as Kady O’Connell, an employment law partner at Mason Hayes & Curran, noted.