More than 20% of HR Leaders have not begun preparation for 2026 EU Pay Transparency Directive

• Twenty-seven percent of HR professionals report that preparations are underway ahead of the EU Transparency legislation, while 22% say that no plans or preparations have yet been put in place.
• HR leaders’ top challenge is managing new legislation, with Pension Auto-Enrolment and preparations for the EU Pay Transparency Directive creating significant additional operational pressure
• Evolving hybrid and remote work policies, impact of AI & changing labour market are among the top priorities to be discussed at the Ibec HR Leadership Summit.

Ibec, the group representing Irish businesses, will today launch its latest HR Update Report at the annual HR Leadership Summit, highlighting key trends shaping HR practices in Irish workplaces. The report, based on a survey of over 391 HR professionals, reveals that just 1% of organisations say they feel are fully prepared for the upcoming EU Pay Transparency Directive, due to take effect in June 2026. Nearly one in three (27%) report that preparation work is in progress, while 22% have yet to begin. However, when comparing 2024 to 2025 there was a 20% increase in those that said preparations are being planned.

Other key developments impacting organisations include the planned introduction of pension auto-enrolment, ongoing trends around remote and hybrid working, and the continued impact of AI in the workplace.

Top of the priorities for HR professionals next year is shifting investment away from recruitment and toward existing talent, with respondents prioritising workforce planning and business continuity - suggesting a growing emphasis on preparedness and long-term workforce sustainability.

Pay Transparency in 2026

In terms of the expected administrative impact of the EU Pay Transparency Directive, 25% of HR professionals identified categorising employees who perform the same work or work of equal value as a key challenge. A further 21% highlighted the requirement to make the criteria used to determine pay levels and progression accessible to employees.

Maeve McElwee, Executive Director of Employer Relations at Ibec, said:

“We’re getting a very clear snapshot of the current priorities for HR professionals – from talent and leadership development in a changing labour market to the impact of AI and new, significant pieces of legislation. Top of the list of legislative challenges is the new EU Pay Transparency Directive - arguably the most significant piece of EU employment legislation in decades.

Categorising roles of equal value and ensuring transparency around pay criteria are not just administrative tasks – they require significant structural and cultural shifts within organisations.

Employers are committed to fairness, but they will need clear guidance and support to implement these changes effectively and sustainably. All of this must be done while managing an existing suite of employment legislation and responding to employee information requests within a strict two-month deadline.”

Pensions

According to the report, nearly seven in ten HR professionals (69%) say their organisation currently offers an occupational pension scheme to employees, with 39% allowing access without any eligibility criteria.

With the planned introduction of pension auto-enrolment, 30% of organisations say their voluntary pension scheme will become mandatory. The most significant concern for employers is the cost of employer contributions (cited by 29%), followed by the administrative burden of managing multiple pension schemes (25%).

On average, over one-third of employees contribute more than 5% to a mandatory or voluntary pension scheme, while nearly half of employers contribute more than 5%.

Hybrid and Remote Working

The majority (63%) of HR professionals say their company is not actively considering increasing onsite attendance in 2026, with 49% of companies expecting employees to be onsite at least two days a week.

However, there has been a decline in companies citing remote and hybrid work as a barrier to attracting and retaining employees, falling from 52% in 2024 to 46% in 2025. Since the introduction of the Work Life Balance Act in March 2024, only 16% of companies have seen an increase in applications to work from home.

Maeve McElwee added:

“On hybrid and remote working, the survey evidence points towards the stabilising impact of established workplace norms, with office attendance patterns better understood and adaptive to the needs of both employers and employees.

The introduction of the Work Life Balance Act in March 2024 has had little or no impact on the number of staff applying for flexible or remote working.

When you look at the high number of companies not planning to change their office attendance policies, as well as the relatively low number of employees formally requesting to work from home, it suggests that the tension around remote and hybrid work is not as intense as often perceived- and, in most cases, is working for both employers and employees.”

HR and AI

Currently, 54% of employers have established or are developing AI workplace policies. While attitudes toward AI are becoming increasingly positive, progress—particularly within HR—remains slow. This lag is largely due to two main barriers: limited internal expertise and concerns over data privacy and security