Pay transparency in Finland – what international employers need to know

Pay transparency is becoming an increasingly important part of recruitment and employment practices across Europe. The Finnish government has submitted a proposal to Parliament to implement the EU Pay Transparency Directive, with the new rules intended to take effect on 1 January 2027. The aim is to strengthen equal pay for equal work or work of equal value and to make pay structures more transparent. For international companies employing or planning to hire people in Finland, this means that recruitment and compensation practices should be reviewed well before the changes take effect.

Recruitment: pay information comes first

One of the most visible changes concerns recruitment. Employers will be required to give job applicants information about the starting salary or salary range, so that salary negotiations can be conducted transparently. Employers will also no longer be allowed to ask candidates about their current or previous pay. For companies recruiting internationally, this makes it essential to define salary levels and the criteria behind them before the recruitment process begins.

Greater transparency for employees

Pay transparency will extend well beyond recruitment. Employees will have stronger rights to information about pay, the criteria used to determine it and how salaries progress. They will also be able to request information on average pay levels for employees doing the same work or work of equal value. Pay confidentiality clauses will be prohibited, and if an employer fails to meet a transparency obligation, the burden of proof shifts to the employer. This makes it all the more important that pay differences rest on objective and gender-neutral criteria that can be documented and explained.

Pay reporting for larger employers

Larger employers will also face gender pay gap reporting obligations. Under the EU Directive, these apply to employers with at least 100 employees, and in Finland the reporting requirements are expected to be introduced gradually, starting with the largest employers. If significant gender pay differences cannot be justified by objective and gender-neutral factors, further assessment and corrective measures may be required. International employers operating in several European countries should therefore treat pay transparency not only as a Finnish compliance matter, but as part of their wider European HR and compensation practices.

Existing obligations already apply

It is also worth remembering that Finnish law already sets requirements today. Employers with at least 30 employees must maintain an equality plan that includes a pay survey, and unjustified pay differences must be addressed.

How to prepare

Now is a good time to review recruitment processes, salary structures and internal pay policies. Understanding Finnish employment requirements is particularly important when entering the Finnish market or hiring without an established local HR organisation. Econia supports international employers with recruitment, employment, payroll and other practical aspects of employing people in Finland. Get in touch to discuss how pay transparency affects your hiring plans.