When will the EU pay transparency directive come into force in Finland?

EU's Pay Transparency Directive will come into effect in Finland in June 2026, once the directive is implemented into national legislation. The directive obliges employers to disclose pay information and promote gender pay transparency. Companies should start preparing now, as the changes require auditing of pay systems and updating of HR processes before the deadlines.

What is the EU Pay Transparency Directive and what does it mean in practice?

The EU's Pay Transparency Directive is legislation that aims to reduce the gender pay gap by promoting salary transparency and by preventing pay discrimination. The directive obliges employers to share pay information openly and to guarantee employees' right to access information on pay levels.

The directive's key objectives focus on three main areas. Increasing pay transparency means employers must disclose pay information in job advertisements and provide employees with information on average pay gaps. Preventing pay discrimination, in turn, prohibits gender-based pay gaps for equal or equivalent work.

The directive's background is the observation that the average earnings of women in the EU are still around 13 percent lower than those of men. Increasing pay transparency is believed to reveal hidden pay gaps and encourage employers to correct unequal pay practices. Transparency is also believed to strengthen employees' bargaining position in salary discussions.

When does the directive come into force in Finland and what schedule should companies follow?

The directive must be implemented into Finnish national legislation. By June 2026. This means that the new obligations will come into effect by then at the latest, but practical preparations should be started considerably earlier.

The phased rollout begins with the obligation to disclose salary information in job advertisements. This applies to all open positions after the directive comes into effect. In the next phase, companies will have to provide employees with access to salary information and average wage levels, disaggregated by gender.

Larger companies will also have to report their pay gaps annually. Companies with over 250 employees will start reporting first, with smaller companies following later in stages. Practical deadlines will be clarified when Finland publishes a detailed implementation schedule.

Companies should start preparing in 2025 to ensure that the changes can be implemented in a controlled manner. Expert Services assist in navigating the requirements of upcoming legislative changes and ensuring compliance with regulations.

What obligations does the directive impose on Finnish companies?

The directive brings companies several concrete obligations, which vary depending on the size of the company. All employers will have to disclose the salary level or salary range in job advertisements and provide employees with information on average pay gaps by gender.

The obligation to disclose salary information applies to both recruitment and current employees. Job advertisements must state the starting salary or salary range. Employees have the right to request information about average salaries in the same or equivalent roles, broken down by gender.

Larger companies also have reporting obligations. Companies with over 250 employees report their pay gaps annually, and companies with over 100 employees report every three years. The reports must include gender pay gaps by job level and explanations for significant differences.

Employees' rights are significantly strengthened. They have the right to access salary information, seek correction for pay discrimination, and receive legal protection from retaliation. Employers must also demonstrate that any pay gap is not due to gender if an employee raises the issue.

How can companies prepare for the changes brought by the directive?

Preparation is worthwhile through a thorough audit of payroll systems. Map the current salary levels and identify any gender pay gaps by job role. This will provide a basis for necessary corrective measures before the directive comes into effect.

Updating HR processes is essential. Create clear processes for collecting salary information, reporting, and handling employee data requests. Ensure that recruitment processes include disclosing salary information at the job advertisement stage.

Training personnel is critical for the success of the change. Train supervisors and HR personnel on new responsibilities and employee rights. Ensure that everyone understands the requirements of the directive and knows how to act accordingly.

Updating technical systems may be necessary for payroll information management and reporting. Assess the capabilities of current HR systems to generate required reports and support transparency obligations.

Proactive preparation is a better option than rushed last-minute adaptation. Start the change process now so your company will be ready when the directive takes effect in Finland.

Do you need help complying with the Pay Transparency Directive?

The entry into force of the EU's Pay Transparency Directive brings significant changes and new obligations for companies. Preparation requires thorough planning and expertise. We offer comprehensive Services to meet the requirements of the directive and update HR processes.

Contact us Contact our experts today to ensure your company is ready for future changes. Proactive action saves time and reduces risks as the directive approaches.