Ombudsman for Equality

What constitutes remuneration?

The definition of ‘remuneration’ is extremely flexible both in the Finnish Equality Act and in the laws of the European Union. Remuneration refers to all kinds of monetary benefits awarded by employers directly or indirectly on the basis of work. Remuneration can be a reward for work already done or an incentive for the future, as long as it is directly or indirectly related to work.

Remuneration covers both basic salaries and minimum wages as well as various kinds of bonuses. Remuneration systems may include various benefits, such as personal bonuses, profit shares and premium hourly rates. Paid sick leave, holiday, maternity leave and paternity leave also count as remuneration under the Finnish Equality Act. The definition of remuneration also covers benefits in kind, such as telephones, meals, cars and accommodation paid by employers.

The case law of the European Court of Justice also includes redundancy packages in the definition of remuneration. Private pensions also count as remuneration. Similarly, the European Court of Justice sees the pension benefits available to public officials in Finland as remuneration under Article 141 of the Treaty establishing the European Community.

The definition of remuneration covers benefits payable on the basis of employment contracts and other contracts as well as voluntary benefits paid by employers. The prohibition of discrimination governed by the Finnish Equality Act applies to both remuneration and other terms and conditions of employment.

All aspects of remuneration must be non-discriminatory

Whenever remuneration comprises a variety of different kinds of benefits, all aspects of remuneration must be non-discriminatory in their own right. This means that pay comparisons cannot be based on overall remuneration. All different aspects of monetary remuneration must also be non-discriminatory in their own right: this applies to both basic salaries and all different kinds of bonuses.