On April 14th, Estonia rejected the current version of the EU’s Pay Transparency directive under the pretense of being “ideological” and burdensome for businesses. Critics see the move as an ignorant dismissal of Estonia’s persisting gender inequality.
The gender pay gap in Europe
The principle of gender equality is outlined under EU law, both Article 157 of the Treaty on the Functioning of the European Union (TFEU) and the Equal Pay Directive 2006/54/EC protect against gender-based pay discrimination.
However, in 2024, women in the EU earned 11% less than men for the same work, according to Eurostat—a discrepancy known as the gender pay gap. In the same year, women in Estonia earned anywhere between 13-18% less than men (depending on the statistics cited), making it the widest gap in Europe at the time. In 2025, the gap in Estonia dropped to a record-low of 12.2%, according to Statistics Estonia. But this is still far too large.
The reasons for persisting gender pay gaps stem from unseen forms of structural discrimination.
Patriarchal norms frame care work—including raising children, supporting sick family members or friends, and tending to other household needs—as women’s natural duties rather than skilled labour. This means that, economically speaking, it’s treated as invisible, unpaid work.
The systemic undervaluation of care work also means that female-dominated fields, including childcare and nursing, are also underpaid relative to the skills they require…
These biases, subconscious or not, significantly affect women’s careers. While other cultural, social, and economic factors certainly come into play, the treatment of care work as “women’s work” shapes who becomes “breadwinners” and who is compelled to leave or take up part-time work. The Pay Equity Office of Ontario says that, whether taken on willingly or by necessity, these disruptions result in the loss of advancement opportunities and wages.
The systemic undervaluation of care work also means that female-dominated fields, including childcare and nursing, are also underpaid relative to the skills they require, according to a report from the Institute for Women’s Policy Research.
The European Council says that wage gaps are not just a matter of lower pay in the interim. They also have important long-term impacts on women’s exposure to poverty, the pension pay gap, and their overall quality of life.
The EU’s solution
Because gender-based forms of discrimination are often subconscious, they remain unchallenged. The Pay Transparency directive addresses this by improving workers’ and job seekers’ rights to access wage-related information.
For instance, employers will be obligated to disclose salary ranges before interviewing candidates. Employers will also not be allowed to ask potential candidates about their previous salaries. Employees will be entitled to ask their employers what the average pay levels are for similar work within their organization. They will also be entitled to ask what criteria was used for determining pay and career progression (European Council).
Additionally, large companies will also be required to conduct annual reports on pay disparity within their organizations. If such reports reveal gaps larger than 5% or more that cannot be justified by objective criteria, companies will be required to conduct joint pay assessments and correct imbalances (European Council).
EU member states have until June 7th, 2026 to transpose the directive into national law.
Estonia’s qualms
Estonia’s resistance to implementing the directive as-is stems from the alleged red tape it would bring. In fact, the Minister of Economic Affairs and Industry Erkki Keldo said that Estonia “would rather pay a fine from the EU than create more bureaucracy for businesses,” appealing for the EU’s deadline to be pushed to 2028 (ERR). Meanwhile, the Minister of Foreign Affairs Margus Tsahkna went even further to say that the directive is “ideological” and will stifle entrepreneurship rather than achieve its desired goals (ERR).
As of April 22nd, the ministry is only planning on adopting parts of the directive that do not hinder businesses. These include its provisions on information access rights (ERR).
Others have met the government’s decision with criticism.
Karin Paulus, president of the women’s association of the Social Democratic Party, said in an article in Estonian World that “anyone with even basic computer skills would not find this a major extra burden. To my mind, this is a move away from Europe’s shared values.”
… women earn about 89 cents for every dollar earned by men, according to Statistics Canada. This gap is wider among marginalized communities.
Similar concerns in Canada
Canada, like Estonia, has laws enshrining pay equity. At the federal level, these include both the Canadian Human Rights Act (1977) and the Pay Equity Act (2018). The provinces have their own versions of pay equity and transparency laws.
Still, on average, women earn about 89 cents for every dollar earned by men, according to Statistics Canada. This gap is wider among marginalized communities.
On April 14th, members of the Ontario Equal Pay Coalition met for a rally in downtown Toronto, calling on the government to do more to close this gap.
As in Europe, caregiving fields in Canada are consistently devalued and underfunded. Sami Pritchard, director of advocacy and communication at YWCA Toronto, said on CTV News that “These are the folks who held us through some of the toughest times… and we want to ensure they’re paid a fair and livable wage.” They say that women in Ontario “earn 28%less on average than men.”
In the same article, Michaela Kargus, a vice-president with the Ontario Federation of Labour, said that “I think it’s really important that we understand that our care economy fuels the economy. There is no work without care work. No one can go to work if their children, their elders are not cared for. And these (jobs) are fundamentally powered by women’s work.”
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This article was written by Natalie Jenkins as part of the Local Journalism Initiative.
