Equal Pay Day marks the moment when Estonian women have, on average, earned the same salary that men had already earned by the end of the previous year.

The gender pay gap in Estonia is 13.1 percent, meaning that women must work 33 additional workdays this year to earn the same as men, the Ministry of Economic Affairs and Communication said.

Over the past ten years, the gender pay gap has decreased by 47 percent, yet Estonia still has the largest pay gap in Europe.

Gender stereotypes hold women back 

The pay gap is primarily caused by gender stereotypes, which influence the educational and career choices of men and women, career paths, the division of care work, and employers' salary and personnel policies.

Minister of Economic Affairs and Industry Erkki Keldo (Reform) said it is essential that all people, regardless of gender, receive equal pay for equal work.

While the minister acknowledged progress in reducing the gender pay gap, deeply ingrained beliefs continue to hinder change, he said, giving the assumption that men are better suited for leadership roles and the fact that professions dominated by men tend to be better paid as examples.

"A significant portion of the pay gap is due to the fact that men and women are concentrated in different fields. For example, more women work in education and care-related professions, where salaries are lower," Keldo explained.

"Additionally, fewer women hold leadership positions, even though research has shown that companies that include women in leadership tend to be more successful, as decisions are more diverse and employee leadership potential is better utilized. Countries that make full use of their workforce are generally more successful," he added.

Eva Liina Kliiman, gender equality advisor at the Ministry of Economic Affairs and Communications' Equality Policy Department, said the gender pay gap, largely influenced by gender stereotypes, reduces women's economic independence and decision-making freedom throughout their lives.

"Women with lower earnings find it harder to leave abusive relationships, and they receive lower wage-dependent benefits and compensations, including parental benefits. Additionally, the gender pay gap eventually leads to a pension gap, as pension amounts are partly determined by previous earnings," Kliiman explained.

New legislation

In June 2026, Estonia will implement an EU directive aimed at increasing pay transparency. The ministry is currently drafting the law.

Kliiman said one measure is that job applicants must be informed of the salary range no later than the job interview or that the salary must be included in the job advertisement.

"One key goal of increasing pay transparency is to strengthen employees' position in salary negotiations, where workers and employers are not on equal footing," Kliiman noted.

Studies show that 95 percent of wage earners in Estonia believe that salaries or salary ranges should be disclosed in job postings.

--

Follow ERR News on Facebook and Twitter and never miss an update!