Skip to content The EU Pay Transparency Directive must be transposed by Member States by 7 June 2026 and introduces new obligations for European companies intended to ensure greater salary transparency and equal treatment between men and women.
The Estonian government’s decision to adopt only part of the provisions set out in the Directive follows statements made in recent weeks by the Minister of Economic Affairs, Erkki Keldo. As a matter of fact, he had even suggested the possibility of not transposing the European legislation in order to avoid additional bureaucratic requirements for companies.
Socio-economic context
The issue is particularly relevant considering that Estonia still records one of the highest gender pay gaps in the European Union.
According to data released by Statistics Estonia, the hourly gender pay gap in the country stands at 13.2%. In some economic sectors, however, the gap exceeds 20%, confirming that pay differences remain particularly significant in specific industries.
Eurostat figures paint an even more critical picture: according to the European statistical office, Estonia’s gender pay gap reaches 18.8%, the highest level in the entire European Union.
For this reason, part of the government and several trade union organisations are calling for a broader implementation of the European legislation.
Gradual implementation of the Directive
According to announcements made by the Estonian Ministry of Economic Affairs, certain measures considered “essential” under EU Directive 2023/970 on pay equality will be introduced. These include:
- the obligation to communicate the salary range to candidates before the interview stage;
- the prohibition on employers requesting information regarding salaries earned in previous positions;
- the possibility for employees to freely share salary information with colleagues;
- the principle that men and women performing the same work cannot receive different pay without an objective justification.
However, strong resistance remains regarding the more structured measures provided for by the Directive, particularly with respect to pay reporting obligations and the classification of job roles into specific categories, tools required under European legislation to monitor pay gaps exceeding 5% that are not justified by objective criteria. To implement these requirements, the Estonian government is requesting a two-year extension.