Can we still negotiate individual salaries under the pay transparency rules?

The short answer is yes - the EU Pay Transparency Directive doesn’t ban individual salary negotiations. Employers can still adjust offers based on skills, experience, or market demand. 

The key is consistency and transparency. If two people in equal roles are paid differently, you need to be able to explain why. If the difference exceeds 5% and can’t be justified by objective criteria, it may trigger a legal obligation to act. 

While the EU Directive recommends action for unexplained pay gaps over 5%, Ireland’s current legislation does not mandate audits or corrective plans based on gap size, as we have not yet transposed this into law. Employers should still be prepared to explain pay differences using objective criteria. 

Negotiation is still allowed. 

Employers can: 

• Offer a salary range and negotiate within it.
• Adjust pay based on proven skills, experience, or scarce expertise.
• Provide non-monetary incentives, like training opportunities or additional leave. 

What changes with the Directive: 

• Ad hoc or informal exceptions are riskier - they could create unexplained pay gaps.
• Differences of 5% or more that can't be objectively justified may trigger a pay audit and corrective action plan.
• Salary structures need to be formalised, with:
• Clear job classifications
• Defined pay bands or grades
• Documented progression models 

Employees should also be able to see how their pay compares within a band, and what’s required to progress. 

See also: What does “equal work of equal value” mean, and how do we define it? 

Negotiation isn't disappearing. But in a pay transparency world, it works differently: decisions must be structured, explainable, and fair. 

Done well, pay transparency won't stifle competitiveness. It will strengthen trust by showing employees that opportunities are open, consistent, and credible. 

In Ireland, individual salary negotiation remains permitted under the Gender Pay Gap Information Act 2021 and broader employment law. Employers can offer salary ranges and adjust pay based on experience, skills, or market demand. However, transparency is essential, especially when differences arise between employees in similar roles. While Ireland does not currently require corrective action for unexplained pay gaps over 5%, employers should be prepared to justify decisions using objective criteria. In the public sector, pay is often governed by collective agreements, such as the Public Service Agreement 2024–2026.