Gender Pay Gap in Estonia: A Perspective
Financial sector in Estonia displays the widest gender pay disparity.
Let's dive into the gender pay gap issue in Estonia, where women earn an average of 13.2% less than their male counterparts. Here's an informal breakdown:
Gender Pay Gap Spotlight
In 2024, the financial and insurance sector recorded the largest gender pay gap at 25.5%, followed by information and communication (24.4%), wholesale and retail trade (23.5%), human health and social work activities (20.7%), and manufacturing (20.2%) [Statistics Estonia].
But interestingly, last year saw a small gender pay gap in transportation and storage, with female employees earning more than male ones [Statistics Estonia]. Other sectors like water supply, agriculture, real estate, and public administration also demonstrated a relatively small gap.
Higher Wages in IT and Finance, But Why?
In Estonia, the highest gross hourly wages were recorded in the information and communication sector, with an average of €21.6 for men and €16.3 for women. The financial and insurance sector, on the other hand, had an average hourly wage of €20.7 for men and €15.4 for women [Statistics Estonia].
On the flip side, accommodation and foodservice activities had the lowest average gross hourly wages for both men and women, at €8.4 and €7.1 respectively [Statistics Estonia].
Tackling the Gender Pay Gap: Potential Solutions
To bridge the gender pay gap, several strategies can be adopted, drawing inspiration from broader EU directives:
1. Pay TransparencyImplement mandatory salary reporting and avoid discussing pay history during the hiring process.
2. Conduct Joint Pay AssessmentsIf a significant gender pay gap is identified, employers must conduct assessments, rectify disparities within a reasonable timeframe.
3. Promote Fair Pay PracticesAdopt structured job levels, gender-neutral criteria in salary decisions, and continuously review compensation practices.
4. Education and TrainingOffer training for HR personnel and programs to raise awareness about the gender pay gap and its impact on equality.
5. Inclusive Hiring PracticesEnsure gender-neutral job titles, descriptions, and focus on skill-based hiring.
Government SupportEncourage governmental support for policies like childcare and flexible work arrangements, which can aid in reducing the gender pay gap.
Strategies specifically targeting sectors like finance, IT, retail, healthcare, and manufacturing can be devised to address sector-specific challenges and disparities.
The Impact of Inequality
The gender pay gap isn't just about present-day wages. It significantly affects our future wellbeing as well. For instance, the difference in wages impacts benefits and pensions. To reduce this gap, we need to confront gender stereotypes, encourage pay transparency, and re-evaluate society's valuation of care work [Eva Liina Kliiman, an advisor at the economy ministry].
Together, We Can Bridge the Gap
Ultimately, bridging the gender pay gap requires a collective effort from employers, government, and society as a whole, focusing on fair pay practices, transparency, education, and sector-specific strategies.
Reference(s):- Statistics Estonia- Strategies to Reduce the Gender Pay Gap in Estonia
- In Estonia, despite the significant gender pay gap persisting in sectors like financial and insurance, information and communication, and others, there was a rare occurrence in transportation and storage in the previous year, where female employees earned more than their male counterparts.
- To combat the gender pay gap in Estonia, potential solutions could include mandatory salary reporting, joint pay assessments, promoting fair pay practices, education and training, and implementing inclusive hiring practices, while also seeking governmental support for policies like childcare and flexible work arrangements.
- Reducing the gender pay gap is crucial for future wellbeing, as it affects benefits, pensions, and economic equality overall. To achieve this, we must confront gender stereotypes, encourage pay transparency, and reassess society's valuation of care work.
- In 2023, the average hourly wage gap between women and men was more pronounced in sectors like information and communication and financial and insurance, with average hourly wages of €21.6 and €20.7 for men, respectively, compared to €16.3 and €15.4 for women.
- When implementing strategies to reduce the gender pay gap, specific attention should be paid to sectors like finance, IT, retail, healthcare, and manufacturing, as each sector presents unique challenges and disparities that require sector-specific solutions.
- Despite the considerable work needed to bridge the gender pay gap in Estonia, collective efforts from employers, government, and society as a whole can ensure fair pay practices, transparency, education, and the adoption of sector-specific strategies to create a more balanced economic landscape.
