SAK criticizes Finnish government's pay transparency proposal

The Finnish government has presented a proposal to implement the European Union's pay transparency directive, intended to take effect at the beginning of 2027. While the proposal includes several improvements for workers, the Central Organisation of Finnish Trade Unions (SAK) has criticized the draft for failing to meet the full requirements of the EU directive.

SAK argues that the proposal lacks a clear definition of 'equal work,' which is essential for identifying unjustified pay gaps. Additionally, the union claims the criteria for comparing jobs are too vague, the proposal lacks gender-neutral job titles required by the directive, and the mechanisms for proving pay discrimination and penalizing employers are insufficient.

Despite these criticisms, the proposal introduces several new rights for employees. Employers will be required to disclose the criteria used to determine pay more openly, and workers will have the right to know their own pay level as well as the median pay for equal or comparable work, broken down by gender. Furthermore, job seekers will be informed of salary ranges before negotiations, and employers will be prohibited from asking about a candidate's previous salary. Companies with at least 100 employees will also be obligated to report on gender pay gaps and take corrective actions where necessary.