The legal amendments aim to make the pay information in employment relationships clearer and the recruitment system more transparent.

Employers are now also required under the Employment Contracts Act to pay women and men on equal grounds. This means that employers must pay equal remuneration for the same work or work of equal value, unless there are objective and gender-neutral reasons for different pay. 

Employees will also have the right to talk about their pay and employers may not prohibit employees from discussing their income.

An employer must share the salary with candidates in writing before a job interview and an employer cannot ask about a candidate's previous salary.

Minister of Economic Affairs and Industry Erkki Keldo (Reform) said the new rules should strengthen jobseekers' position in salary negotiations.

"There is no denying that salary is one of the most important factors when choosing a job, and people must be able to make informed decisions from the very beginning of the recruitment process. Earlier disclosure of salary information and greater transparency in the recruitment process help reduce unjustified pay differences and shape a fairer labor market," he said.

With the amendments, Estonia is partially transposing the European Commission's Pay Transparency Directive.

Earlier this year, Keldo said Estonia would not introduce the legislation because it created additional bureaucracy for employers.

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