Draft proposal for implementation of the Gender Pay Transparency Directive published

At a glance

• A draft proposal for implementation of the Gender Pay Transparency Directive (Directive) was published on 16 May 2025.
• The proposal will be subject to consultation and the final legislation is not expected until later in 2025.
• Implementation of the final legisaltion is expected on 18 May 2026.

The Finnish Ministry of Social Affairs and Health set up a working group to prepare a draft of the government's proposal for national implementation of the Directive. The group's mandate ended on 9 May 2025, and the draft was published on 16 May 2025.

The working group was not unanimous in its views. However, according to the draft produced, the Directive will have the following impacts in Finland:

• Employers will have to provide job applicants with information on the starting salary, or the salary range. Employers will not be allowed to ask about the applicant's previous salary.
• Employees will have the right to know the basis of their pay and the average pay of other employees in the same job or job of equal value. This information must be provided within two months of the employee's request.
• Employers with at least 100 employees will need to publish information on their gender pay gap to employees and representatives and provide it to the Ombudsman for Equality.
• If the pay gap reporting reveals a gender pay gap of 5% or more for a particular group of employees and:
  • the employer cannot justify the gap on objective, gender-neutral criteria; and
  • has not remedied the unjustified gap within six months

the employer must conduct a joint pay assessment in cooperation with the employee representatives and the Ombudsman for Equality.

• The legislation will include definitions of the gender pay gap, equal work and categories of employees, as well as minimum criteria for assessing whether employees are doing the same or equal work.
• The timeframe for filing an action for compensation will be extended from two to three years in cases where the prohibition against discrimination is violated.

NB This information is based on the working group's draft and the official government's proposal is estimated to be published on week 39/2025 after consultation rounds.

The new legislation is due to enter into force on 18 May 2026.