A Clare representative of small and medium enterprises insists employers can’t be expected to address the gender pension gap without State assistance.
A new report has taken aim at the recently reformed Irish pension system and its alleged failure to tackle the “structural inequalities faced by women”.
Due to come into effect on September 30th 2025, the new auto-enrolment pension scheme means roughly 800,000 workers will automatically be enrolled in a private pension scheme, in addition to the State pension.
While it’s widely considered to be the greatest reform of the Irish pension system since the 1960s, a new report from the National Women’s Council entitled “Still stuck in the Gap – Pensions Auto-enrolment from a Gender and Care lens” has identified a number of potential flaws in the scheme.
The report claims auto-enrolment will significantly expand pension coverage, but says that far from eliminating the gender pension gap, which it estimates to be around 35%, it may actually make it worse.
Explaining the reason for this, the National Women’s Council says the scheme’s focus is on paid full-time employment and excludes part-time work and unpaid care work, which women are more likely to be involved in.
Inagh-based Clare Irish Small and Medium Enterprise Association representative and owner of St. Tola’s Goat Cheese, Siobhán Ní Ghairbith believes the scheme places too much responsibility on employers.
Under auto-enrolment, employees will contribute 1.5% of their gross salary within the first three years, 3% from the third year, 4.5% from year six, and finally 6% from the tenth year onwards.
Leading up to the recent General Election, the Social Democrats pledged to link the State Pension to at least 34% of the average wage.
Ennis-based former Soc Dems candidate and founder of the Mná Ag Gáire Women’s Shed, Hilary Tonge says most people would be happy to pay higher taxes in exchange for a guaranteed generous pension.
You can listen to the full interview here:
