This year, Equal Pay Day is marked on March 5. This marks the moment when Estonian women on average have earned the same salary that men earned by the end of last year. 

The gender wage gap in Estonia is 17.7 percent, which means Estonian women have had to work 45 working days more to earn the same salary as men, the Ministry of Economic Affairs and Communications said in a statement.

While the gap has decreased over the last decade, the gap increased in 2022 data from Statistics Estonia shows.

Minister of Economic Affairs and IT Tiit Riisalo (Eesti 200) said the gender wage gap and inequality depress people's well-being and economic growth. 

"The situation has improved in recent years, but Estonia still has a long way to go before men and women are equally involved in high-impact decision-making as senior managers and in caring for the home and children. One of the main causes of the pay gap is gender segregation, i.e. the concentration of women and men in different occupations. As a rule, women are employed in lower-paid but socially essential jobs. Gender gaps in education or health and, for example, IT needs to be reduced. This is where the potential for economic growth lies," said Riisalo.

The gap also impacts parental benefits and pensions, not only salaries.

Riisalo said that a "large part" of the wage gap can be blamed on employers.

"While many employers and employees believe there is no pay gap in their company, the statistics show otherwise. For employers, however, equal treatment has become an increasingly important advantage in the labor market – the younger generation values the promotion of different social values when choosing a job. People who are well looked after are more willing to contribute back to society and the economy. While the role of employers is to stand up for non-discriminatory pay and human resources policies, the state can help by designing a supportive legal framework and the necessary tools," he added.

The ministry said several legislative changes and initiatives are underway to reduce inequality and increase transparency.

By the end of this year, Estonia will adopt the directive on gender balance in listed companies, and the government has also set a goal of promoting gender balance in the management of state-owned companies. 

By 2026, Estonia will adopt a wage directive which means companies must analyze the wage gap, publish information, and actively work to reduce the gender wage gap. 

To support employers, the state is preparing a digital solution allowing employers to analyze the wage gap based on register data. 

Employers who value equal opportunities can join the Diversity Compact and Network and apply for the 'We Respect Differences' Diverse Employer Badge.

The majority of Estonian residents (83 percent) are aware of the wage gap. While only 35 percent of men think it is a very big or rather a big problem, 71 percent of women agree, the ministry said.

The wage gap is caused by several factors, such as entrenched gender stereotypes, different educational and occupational choices of women and men, women's greater burden of care work, and wage and personnel policies that do not notice inequality.

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