Northern Ireland: Implementation of the EU Pay Transparency Directive

The Department for Communities (DfC) is progressing with legislative changes to introduce gender pay gap reporting requirements in Northern Ireland. While the enabling legislation allowing the DfC to establish regulations for pay gap reporting was enacted nearly a decade ago, such regulations have experienced significant delays. Following a consultation, the process of enacting these provisions is now advancing.

In parallel to the measures being taken by the DfC, Northern Ireland is bound by certain EU equality laws, including arguably the EU Pay Transparency Directive. Even though the Directive does not apply in Great Britain, the Equality Commission for Northern Ireland (ECNI) and Northern Ireland Human Rights Commission (NIHRC) jointly believe that it must be transposed into the national laws for Northern Ireland by 7 June 2026. This is due to the special post-Brexit arrangements for Northern Ireland applicable under the Windsor Framework agreed between the UK and EU.

This briefing outlines the current legal position, the anticipated next steps and what employers with employees in Northern Ireland should be doing to prepare.

“Northern Ireland stands at a pivotal moment in its journey toward greater pay transparency. After almost ten years of anticipated legislative reform, it is now progressing towards a comprehensive regime, driven by domestic and potential EU influences.”

Ian McFarland, Partner

What do I need to know?

A gender pay gap reporting framework is already firmly established in Great Britain; however, this framework does not presently extend to Northern Ireland. The Employment Act (Northern Ireland) 2016 makes provision for the introduction of such a regime in Northern Ireland. The implementation and operational details of this require the enactment of appropriate regulations.

In November 2024, the DfC launched a public consultation on the draft regulations, which closed in February 2025. Several bodies responded to that consultation, including the ECNI and the NIHRC, both of whom welcomed the initiative.

In supporting the legal reform, the ECNI and NIHRC have also stated their joint view that Northern Ireland is under a legal obligation to implement wider obligations under the EU Pay Transparency Directive. In making that assertion, reference was made to the Windsor Framework, which requires ‘dynamic alignment’ for Northern Ireland with certain specified EU directives that protect individual rights. The EU Pay Transparency Directive is not one of the specified directives, but it is asserted by the ECNI and NIHRC that since it amends one of those directives, it is in scope.

On 7 October 2025, the DfC published its response to the consultation. That response largely aligns with the workings of the existing gender pay gap reporting regime in Great Britain, including reporting by mean and median pay, the inclusion of bonuses and information being published in quartiles. In terms of the threshold for reporting, specifically whether the threshold of 250 employees used in Great Britain is also appropriate for Northern Ireland (given the diverse range of employers in NI), the DfC confirmed that it will give this further consideration (by way of comparison the threshold in the Republic of Ireland is 50 employees). Significantly, it also acknowledged that this would be further considered in light of “any further developments with the EU Pay Transparency Directive”.

Despite previous suggestions that the new legislation would extend beyond gender pay gap reporting to also include ethnicity and disability pay gap reporting, the DfC has confirmed that it does not consider that the Gender Pay Gap Reporting Regulations are an appropriate vehicle for such reporting. In particular, concerns were highlighted over the merits of reporting on this data, difficulties with collecting such data, how disability and ethnicity would be defined, and the risk of potential data breaches. As a result, the DfC has, for now, ruled out extending reporting to include disability and ethnicity pay gaps.

The DfC has confirmed in its response that it will be mandatory to accompany gender pay gap data with action plans. Although action plans are not currently required in Great Britian, the Employment Rights Bill will introduce these on a voluntary basis in April 2026, before becoming mandatory in 2027. The Great Britain approach and the approach in Northern Ireland will therefore ultimately align, although the form of the action plans, their frequency and whether they must be published remains uncertain at this time.

Anticipated next steps

The next steps for pay transparency regulations in Northern Ireland include the DfC publishing draft Gender Pay Gap Information Regulations, potentially in early 2026, followed by Assembly consideration and finalisation of the legislation. Such process will determine whether and to what degree the Regulations will align with the requirements of the EU Pay Transparency Directive.

The development of guidance and enforcement mechanisms is also anticipated, likely led by the ECNI, to support employers in preparing for compliance and reporting obligations.

Strategic implications for employers and how we can help

Gender pay gap reporting will soon be implemented in Northern Ireland, and employers are advised to begin preparations. As a minimum, reviewing the framework established in Great Britain is recommended as an initial reference point.

Implementing the Gender Pay Gap Information Regulations will largely align the rules between Northern Ireland and Great Britain in relation to gender pay gap reporting. However, if the EU Pay Transparency Directive is implemented for Northern Ireland, additional and significant pay transparency rules would apply to employers operating in the Northern Ireland but not to the rest of the United Kingdom for employees who are recruited and/or employed in Northern Ireland or in Great Britain. For example, an employer recruiting in Northern Ireland would need to publish the pay range for the role and would be prohibited from asking a candidate about their pay history. Employees based in Northern Ireland would also have the right to request information about the pay gap for men and women for their category of equal work – a right which does not currently exist for employees located in Great Britain.

Planning for compliance with the new requirements in Northern Ireland will typically be a cross-functional responsibility, including legal, HR, compensation, payroll and pay equity teams. Forming a working group early and identifying areas that may require external support will be essential.

With our established equal pay practice, we are ideally placed to support employers with pay transparency readiness, wherever they have a presence. Some of our recent work in this area includes:

• reviewing pay architecture through the lens of work of equal value to advise on compliance 
• conducting pay gap analyses against current practices
• advising on local legal developments
• advising on how to structure the project to maximize privilege and the confidentiality of sensitive pay data and potential gaps
• drafting local and EU consistent templates and processes
• delivering training

Additional resources

Our pay transparency interactive tracker has been designed to help our clients track pay transparency developments, as well as providing access to essential FAQs, timelines and briefings. Please contact your usual Eversheds Sutherland contact for access.

The DfC response to the Gender Pay Gap Information Regulations public consultation can be found on the Northern Ireland Executive webpage.