[Estonia] New salary transparency requirements introduced

In Estonia, new rules on salary transparency came into effect on July 13, scrapping bans on employees discussing their salaries with coworkers and requiring employers to share salaries with candidates before a job interview, ERR reports.

The legal amendments are intended to make pay information in employment relationships clearer and the recruitment system more transparent.

In addition, under the Employment Contracts Act, employers are now reportedly required to pay women and men on equal grounds, meaning employers must give equal remuneration for the same work or work of equal value, unless there are objective and gender-neutral reasons for different pay. 

Employees will also have the right to discuss pay, and employers may not prohibit employees from talking about their income.

The new rules state that an employer must share salary information with candidates in writing before a job interview, and an employer cannot ask for a candidate's previous pay rate.

Erkki Keldo - Minister of Economic Affairs and Industry - said the new rules should strengthen jobseekers' position in salary negotiations.

"There is no denying that salary is one of the most important factors when choosing a job, and people must be able to make informed decisions from the very beginning of the recruitment process. Earlier disclosure of salary information and greater transparency in the recruitment process help reduce unjustified pay differences and shape a fairer labour market," Mr Keldo said.

By introducing these new amendments, Estonia is partially transposing the European Commission's Pay Transparency Directive.

Earlier this year, Mr Keldo reportedly said that Estonia would not introduce the legislation as it created additional bureaucracy for employers.

Source: ERR

(Quote via original reporting)

In Estonia, new rules on salary transparency came into effect on July 13, scrapping bans on employees discussing their salaries with coworkers and requiring employers to share salaries with candidates before a job interview, ERR reports.

The legal amendments are intended to make pay information in employment relationships clearer and the recruitment system more transparent.

In addition, under the Employment Contracts Act, employers are now reportedly required to pay women and men on equal grounds, meaning employers must give equal remuneration for the same work or work of equal value, unless there are objective and gender-neutral reasons for different pay. 

Employees will also have the right to discuss pay, and employers may not prohibit employees from talking about their income.

The new rules state that an employer must share salary information with candidates in writing before a job interview, and an employer cannot ask for a candidate's previous pay rate.

Erkki Keldo - Minister of Economic Affairs and Industry - said the new rules should strengthen jobseekers' position in salary negotiations.

"There is no denying that salary is one of the most important factors when choosing a job, and people must be able to make informed decisions from the very beginning of the recruitment process. Earlier disclosure of salary information and greater transparency in the recruitment process help reduce unjustified pay differences and shape a fairer labour market," Mr Keldo said.

By introducing these new amendments, Estonia is partially transposing the European Commission's Pay Transparency Directive.

Earlier this year, Mr Keldo reportedly said that Estonia would not introduce the legislation as it created additional bureaucracy for employers.

Source: ERR

(Quote via original reporting)