The Estonian government wants the EU Pay Transparency Directive to come into force two years later. Minister Erkki Keldo says this would increase the workload for businesses.
According to the directive, companies should disclose salary ranges in job advertisements. Employers may not ask candidates about their current salary.
If the gender pay gap exceeds five percent, companies must conduct an analysis and correct discrepancies. Larger companies need to prepare pay reports.
The government decided to reject the directive. Minister Keldo says this is necessary to maintain the competitiveness of Estonian companies.
Social Democrat Karin Paulus disagrees that the directive increases workload. She believes it's straightforward and helps employees. Paulus says the directive helps women and men receive equal pay.
Minister Keldo argues that salaries should be determined through negotiations. The state shouldn't regulate all details.
Estonia has one of the largest gender pay gaps in Europe. Paulus says the directive would help employees receive fairer wages.
The government is prepared to pay fines if the directive becomes mandatory. Keldo says fines would be smaller than implementation costs.
Social Democrats and trade unions are ready to protest if the directive isn't implemented. Paulus says this is crucial for gender equality.