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Pay discrimination

Pay discrimination prohibited under equality legislation

The Finnish Equality Act prohibits pay discrimination on the basis of sex or gender. The Act mostly deals with differences in pay between people working for the same employer. Some of these differences may be acceptable under the Finnish Equality Act, others may be unfounded and therefore in violation of the act.

According to the Finnish Equality Act, employers may be found guilty of discrimination if they apply pay or other terms and conditions of employment in such a way that results in one or more employees finding themselves in a less favourable position than one or more other employees of the opposite sex while performing the same work or work of equal value for the same employer. This provision can be found in Section 8(1)(3) of the Finnish Equality Act.

Pay discrimination on the basis of sex or gender is also prohibited under the laws of the European Community. The most important regulations in this regard are Article 141 of the Treaty establishing the European Community and the Equal Pay Directive (75/117/EEC). Finland is also bound by the extensive case law of the European Court of Justice regarding pay discrimination issues.

Pay discrimination vs. differences in pay

The average difference between men’s and women’s pay in Finland is around 20 percent. This figure is based on the average monthly earnings of men and women for regular working hours. The difference in pay is not the same as pay discrimination under equality legislation. The objective of the equal pay policy ratified by the Cabinet of Prime Minister Matti Vanhanen in February 2006 is to reduce the 20-percent difference in pay to 15 percent by 2015.

What to do if you suspect that you have been
the victim of pay discrimination

To find out about what you can do if you suspect that you have been the victim of pay discrimination, see
Are you a victim of discrimination?
and especially
Suspected cases of discrimination in the workplace

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