The gender pay gap expresses the average gross hourly wage of women relative to the hourly wage of men. Although the pay gap has steadily decreased over the past 10 years, according to Statistics Estonia, in 2021, women earned an average of 14.9% less gross hourly wages than men.
The size of the gender pay gap is influenced by many different factors, including gender stereotypes and gender segregation – women and men are concentrated to study and work in different fields. Women constitute the majority in sectors crucial for society's functionality, yet their significance is frequently not commensurately reflected in their wages and salaries. These sectors encompass the social, health, and education sectors. Conversely, in the rapidly growing and highly demanded ICT field, men make up over 70% of the student population. Traditional gender roles, prevalent not only in Estonia but also in other parts of the world, often place the primary burden of caregiving on women. This is reflected in their labour market status and income levels. Among the reasons for the large gender pay gap in Estonia are widespread individual wage negotiations and the lack of uniform basis for wage determination in many organisations.
As a result of the research project "Reducing the Gender Wage Gap" (REGE) led by Tallinn University, which ended in 2022, it was possible to explain the wage gap in Estonia to the extent of 40% for the first time. According to survey findings, the wage gap in Estonia is primarily attributed to workplace-related factors, including occupation, the sector in which the company operates, and its ownership structure. While it is feasible to account for a significant portion of the pay gap among lower-income earners, a substantial portion of the pay gap remains unexplained among higher-income individuals.
In the upcoming years, Estonia will embark on preparations for the implementation of the Pay Transparency Directive. The aim of the directive is to achieve a situation where women and men are paid equally for equal work. Wage transparency measures help to reduce precisely the unexplained part of the pay gap, including intentional and unintentional discrimination.
The Welfare Development Plan 2023–2030 also contributes to reducing the gender pay gap.
Read more about the gender pay gap on the Working Life page.
Last updated: 04.09.2023
