Six in ten Irish workers feel underpaid or undervalued, survey shows

A new survey shows that six in ten Irish workers feel underpaid or undervalued, showing that women are more inclined than men to feel this.

​Fifty-nine per cent of Irish female workers feel that they are underpaid, while just 43% of male workers feel the same way. Regardless of pay, 7% of female workers and 6% of male workers feel undervalued at work.

​This survey, carried out by NFP Ireland, comes amid mounting concerns about Ireland's delay of important new EU rules on pay transparency. The Irish Government say that they will now miss the June 7 deadline for the EU Pay Transparency Directive.

​On further analysis of the survey’s findings, it shows that more than two in ten women feel significantly underpaid, but just one in eight men feel the same way.

​Caroline Reidy, Head of HR Solutions at NFP Ireland, said: “The ability to attract and retain staff is key to business success. Our survey shows that pay equity is a key issue for many workers, with a significant portion of workers feeling that they are not rewarded sufficiently for the contribution they make at work, with women in particular inclined to feel this way.

The survey results reflect the gender pay gap that we know exists in many organisations. The pay transparency legislation, which was due to come into effect in Ireland on June 7 but which unfortunately has now been delayed, will shed more light on the gender pay gap. Under that legislation, all employees will have access to more data to help them identify any unfair gaps in pay that can’t be objectively justified - hence the requirement for organisations to proactively prepare for this key piece of legislation.”

Ms Reidy continued: “That said, however, on average, a man in Ireland still earns 8.3% more than a woman. Women working in Ireland are also consistently underrepresented among higher earners, with recent figures showing that women make up just 39% of the top 25% of incomes and only 28% of the top 1% of incomes.

“Even in sectors where women dominate the workforce, like health and education, they are far less likely than men to feature among the highest earners.

“The new EU Pay Transparency Directive, which was due to come into force on June 7 but which the Irish Government has now said will be introduced on a phased basis, will help to reduce the gender pay gap.

“This legislation will introduce clearer requirements on how pay is determined, communicated and challenged, and employees will also have the right to enquire about the salaries of co-workers with similar duties.

“The law represents one of the most significant regulatory and cultural changes to impact pay and reward practices across Europe in decades. While the principle of equal pay for work of equal value has long existed in employment equality legislation, the reality is that complex pay structures, historic practices and a culture of pay secrecy have often made it difficult for employees – and regulators – to identify pay anomalies. The new framework seeks to change this.”