Estonia takes first step towards pay transparency implementation

At a glance

• Estonia has partially implemented the Gender Pay Transparency Directive (Directive) through amendments to the Employment Contracts Act adopted on 17 June 2026, which entered into force on 13 July 2026.
• The new provisions aim to increase transparency in recruitment and strengthen compliance with the principle of equal pay between women and men.
• Employers must provide salary information to job applicants before an interview and are prohibited from asking candidates about their current or previous pay.
• Employees must be free to disclose their own pay, and employers are prohibited from restricting those discussions.
• Several key elements of the Directive, including pay reporting obligations, employees’ rights to request comparative pay information and mandatory pay structures, have not yet been implemented, meaning further legislative action will be required.

Following the adoption of amendments to the Employment Contracts Act on 17 June 2026, Estonia has taken an initial step towards implementing the Directive. The amendments entered into force on 13 July 2026 and are primarily intended to increase transparency in recruitment processes and reinforce the principle of equal pay.

Under the new provisions, employers must provide salary information to job applicants before a job interview takes place. Employers are also expressly prohibited from asking candidates about their current or previous remuneration and may not prevent employees from disclosing information about their own pay.

The amendments further introduce an explicit obligation in the Employment Contracts Act to ensure equal pay for equal work or work of equal value between women and men. While this principle was already recognised under the Gender Equality Act, it is now expressly reflected in employment legislation.

However, Estonia has only partially transposed the Directive. Several significant employer obligations contained in the Directive, including pay reporting requirements, employees’ rights to request comparative pay information and mandatory pay structures, have not yet been incorporated into national law.

Next steps

These amendments represent an important first phase of Estonia’s implementation of the Directive, but substantial elements of the Directive remain outstanding. At present, no draft legislation addressing the remaining requirements is under parliamentary consideration. Employers should nevertheless continue to monitor developments closely, as further legislative measures will be needed for Estonia to complete implementation of the Directive.