Research shows amount of people who recieve a promotion without pay increase
New research from SD Worx Ireland has found a significant gap between how employees in Ireland feel about their pay and how employers assess compensation fairness, as the EU Pay Transparency Directive approaches implementation.
The study, carried out by iVOX among 1,000 employees and 301 employers in Ireland, shows that 22% of workers believe their pay does not fairly reflect the work they do.
In contrast, only 11% of employers say they do not adequately compensate staff, highlighting a notable perception gap in workplaces.
The findings come ahead of the EU Pay Transparency Directive, which is due to be transposed into Irish law by 7 June 2026.
However, the Government has confirmed Ireland will miss this deadline, delaying the introduction of stricter rules on pay transparency, equal pay reporting and salary disclosure.
Despite the delay, the research suggests many employers are already preparing for the changes.
Some 68% say they already have the necessary processes in place to comply with the Directive, while 69% report actively investing in greater pay transparency – the highest proportion in Europe.
A further 58% regularly review pay data to identify and address potential pay gaps.
However, employee experience tells a more mixed story.
Almost a quarter (24%) of workers said they received a promotion in the past year without a corresponding pay increase.
In addition, fewer than half (45%) of employees feel comfortable asking for a pay rise, with a significant gender difference: 52% of men compared to 37% of women say they feel confident doing so.
Awareness of the upcoming legislation also remains limited. Nearly a third (30%) of employees say they are unaware of the EU Pay Transparency Directive or what it means for their rights.
Meanwhile, 28% believe there is a gender pay gap within their organisation, and 10% do not expect pay transparency to improve in the coming years.
On the employer side, 24% currently provide employees with pay transparency information such as salary bands or pay ranges.
Additionally, 23% say pay transparency initiatives, including pay gap analysis and clearer payslips, are among their top priorities for 2026.
Commenting on the findings, Eimear Byrne, Managing Director of SD Worx Ireland, said the research highlights both progress and ongoing challenges.
“It’s clear from our research that many employees in Ireland feel undervalued for the work that they put in, but are afraid to ask for what they are entitled to,” she said.
Byrne added that the Directive could help normalise conversations around pay: “The rollout of the EU Pay Transparency Directive should support employees in this regard by making conversations about pay increases easier, due to more transparent pay ranges.”
Eimear Byrne, Managing Director at SD Worx Ireland
She said communication will be critical as employers prepare for change: “It’s concerning that a large proportion of employees do not know how the Directive will affect them, and communication from employers will be key to ensuring clarity and openness when it comes to payment rights.”
The findings suggest that while many Irish employers are advancing towards greater pay transparency, significant gaps remain in employee awareness and confidence around pay discussions.
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