To advance equal pay and strengthen salary transparency, the Pay Transparency Directive (EU) 2023/970 sets the minimum requirements to be implemented by member states for employers across the EU for binding obligations on pay reporting and employee information rights. Each member state is required to implement the Directive into national law by 7 June 2026.  

In response, Finland’s Ministry of Social Affairs and Health established a working group that, on 16 May 2025, released a comprehensive draft proposal. While the draft largely reflects the Directive’s minimum standards, it also enhances Finland’s current Equality Act with important updates aligned with the EU Directive. It is proposed that the changes would enter into force on 18 May 2026.

Key takeaways from the proposal;

• Salary history questions are banned

• Pay ranges must be disclosed early in the hiring process

• Employees can request and compare pay info across genders

• Companies with 50+ employees must publish pay progression criteria

• Companies with 100+ employees face structured pay gap reporting

• Joint pay assessments required if unjustified gender pay gaps exceed 5%

• Non-compliance could cost €5,000 - €80,000

Time to take action on the EU Pay Transparency directive as deadline approaches. EU member states must comply by June 7, 2026.

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