Finland is among the first EU countries to act on the Pay Transparency Directive (EU 2023/970). A draft bill was published in May 2025 after a tripartite working group, and it will reach parliament in autumn 2025, ahead of the EU’s June 2026 deadline.
The proposal requires salary ranges to be disclosed before interviews, bans salary-history questions, and grants employees the right to request written pay comparisons. Employers with 100+ staff will report gender pay gap data through the Incomes Register, with oversight from Statistics Finland and the Equality Ombudsman. Fines for non-compliance could reach €80,000.
Over the next year, all EU member states must prepare to transpose the Pay Transparency Directive (EU 2023/970) into national law. While many are still at the planning stage, Finland has already moved ahead with a draft bill, making it one of the first countries to act decisively on the new legislation.
On 16 May 2025, the Ministry of Social Affairs and Health published a draft government proposal following a year-long tripartite working group with representatives from government, employer associations, and trade unions. The draft is now under public consultation and is expected to reach parliament in autumn 2025, well in advance of the EU’s 7 June 2026 deadline.
What Finland’s Draft Law Proposes
The draft legislation is designed to bring Finnish practices into alignment with the EU directive, while building on what already exists under the Equality Act (609/1986). Employers with at least 30 employees have long been required to prepare an Equality Plan, including a pay audit every two years. That foundation remains in place. What is new are the transparency measures required before hiring, stronger employee rights, and standardized reporting to authorities.
Under the proposal, employers must disclose salary ranges before job interviews and will no longer be able to ask candidates about their salary history. Employees gain the right to request a written comparison between their own pay and that of colleagues doing the same or equal-value work, with employers obliged to respond within two months. Companies with 100 or more employees will be required to submit gender pay gap data through the national Incomes Register, which will then be processed by Statistics Finland and reviewed by the Equality Ombudsman. Non-compliance could result in penalties ranging from €5,000 to €80,000.
A System Built for Transparency
What makes Finland’s approach unique is the division of responsibilities. The state will calculate overall gender pay gaps using existing payroll data, while employers must analyze and explain gaps at the job-category level. This hybrid model is meant to reduce administrative burden while still holding companies accountable for meaningful analysis. For employers, the key takeaway is that equality planning will no longer be sufficient on its own. Transparent, auditable reporting is coming, and it will be overseen by both national authorities and employee representatives.
The Numbers Behind the Reform
The urgency of the directive is clear when looking at Finland’s pay gap statistics. According to Statistics Finland, the preliminary 2024 figure shows that women earned around €0.84 for every €1 men earned, amounting to an unadjusted gender pay gap of 16 percent. A similar figure was confirmed by Yle News, which reported women earning 84.4 cents per euro earned by men. The government’s Equal Pay Programme (2024–2027) sets a target of reducing this gap to below 15 percent by the end of the parliamentary term. The draft law is designed to help close that gap by making pay structures clearer, measurable, and enforceable.
Preparing for What’s Ahead
Although the law is not yet final, Finnish employers would be wise to begin preparing now. That means reviewing Equality Plans to ensure pay audits are accurate, adjusting recruitment processes to disclose salary ranges, and planning reporting systems that can integrate with the Incomes Register. Just as importantly, companies should be ready to communicate these changes to employees, who will soon have expanded rights to request pay data and transparency.
Looking Forward
Finland’s early action positions it ahead of many European peers. While debates in parliament may refine some of the details, the direction of travel is clear: greater pay transparency, stronger employee rights, and stricter enforcement mechanisms. For employers, this is not just about compliance. It is an opportunity to strengthen trust with employees, demonstrate commitment to equality, and stand out as a transparent and fair employer in a competitive market.