Direct Request (CEACR) - adopted 2023, published 112nd ILC session (2024)

Equal Remuneration Convention, 1951 (No. 100) - Estonia (Ratification: 1996)

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Articles 1 to 4 of the Convention. Assessing and addressing the gender pay gap and its underlying causes. The Committee notes the Government’s indication, in its report, that according to Statistics Estonia, the gender pay gap in the average gross hourly earnings of women and men was estimated at 14.9 per cent, in 2021 (compared to 15.6 per cent in 2020). The Government adds that two factors have contributed to the continuing decrease of the gender pay gap over the years, namely a 52 per cent increase of the minimum wage between 2016 and 2022, as well as several steps taken to ensure adequate wages in female-dominated sectors. The Committee however observes that, according to Statistics Estonia, in 2021, the gender pay gap was still over 15 per cent in occupations where women are traditionally highly concentrated, such as administrative and support service activities and education. Furthermore, the gender pay gap remains high in several sectors, including financial and insurance activities (25.7 per cent), wholesale and retail trade (24.2 per cent), health and social work activities (23.8 per cent) and information and communication (23.5 per cent). The Committee notes the Government’s indication that the “Reducing the Gender Wage Gap” (REGE) Research Project, carried out from 2019 to 2022, was able to explain 40 per cent of the gender pay gap, and showed that individual characteristics, such as level of education, labour market status, age, and nationality, explain only a marginal share of the pay gap, while the average salary paid and the share of women employed by the employer play a more substantial role. Occupation and sector of economic activity are moderately important in explaining the gap. The Committee welcomes the adoption of the Welfare Development Plan for 2023-2030 which sets as a specific sub-goal the enhancement of gender equality and equal treatment, including by: (1) continuing to identify the causes of the pay gap and design measures to improve pay transparency; and (2) supporting employers with knowledge and user-friendly tools to identify and reduce the pay gap in their organizations. The Committee observes that the Plan acknowledges that although the gender pay gap has been on a downward trend over the last decade, it shows significant gender inequalities in the labour market and in the economic independence of women and men, with women being more likely to work in less valued and therefore lower paid occupations as a result of gender segregation in the labour market. In that respect, the Committee refers to its direct request on the application of the Discrimination (Employment and Occupation) Convention, 1958 (No. 111). While welcoming the efforts made by the Government to reduce the gender pay gap, the Committee observes that the gender pay gap only declined in a limited manner over the past five years and remains very high. In that regard, the Committee notes that, according to Eurostat, the highest unadjusted gender pay gap in the European Union (EU) was still registered in Estonia, in 2021, being estimated at 20.5 per cent (compared to 12.7 per cent on average at EU level) and only slightly decreased by 1.3 percentage points since 2018. The Committee further notes that, in its 2020 conclusions, the European Committee of Social Rights (ECSR) concluded that the situation in Estonia was not in conformity with article 20(c) of the European Social Charter on the ground that sufficient measurable progress in respect of the obligation to promote the right to equal pay was not achieved. In light of the persistently high gender pay gap, the Committee asks the Government to strengthen its effortsin order to identify and address the underlying causes of the gender pay gap, such as occupational gender segregation and gender stereotypes. It asks the Government to provide information on: (i) any measures implemented to that end, in particular in the framework of the Welfare Development Plan 2023-2030, and their impact; (ii) the earnings of men and women, in both the public and private sectors, disaggregated by economic sector and occupation, if possible; and (iii) any statistical data or study available on the gender pay gap.

Measures to promote equal remuneration. Pay transparency. The Committee notes the Government’s statement that amendments to the Gender Equality Act (GEA), that would have obliged employers in the public sector to carry out equal pay audits, were submitted to Riigikogu (the Parliament) but dropped from the proceedings due to expiry of the mandate of the Parliament in February 2019. The Committee however notes that a digital tool for analysing the gender pay gap, known as the “Palgapeegel” (“Pay Mirror”) platform is being developed, in collaboration with Statistics Estonia, and should be ready for use in 2024. The Committee observes that the Directive (EU) 2023/970 of the European Parliament and of the Council of 10 May 2023 to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women through pay transparency and enforcement mechanisms (“EU Pay Transparency Directive”) entered into force on 6 June 2023, and that EU Member States must implement it within three years. In this regard, it notes the Government’s statement that amendments to the GEA are planned to be introduced in line with the EU Directive. The Committee also notes that the Government’s Action Plan for 2021-2023 formally includes a task for the Minister of Social Protection to present to the Government amendments to the GEA aimed at reducing the gender pay gap. The Committee asks the Government to provide information on any developments, including legislative developments, introduced to improve pay transparency, in particular in the context of the transposition of the EU Pay Transparency Directive. Noting that the Government intends to develop further voluntary approaches to help employers identify and correct pay gaps, the Committee asks the Government to provide information on any progress made in this regard, in particular regarding the “Pay Mirror” platform, including with a view to implementing section 11(2) of the Gender Equality Act.

Articles 2(2)(c) and 4. Collective agreements and cooperation with employers’ and workers’ organizations. The Committee notes with regret the repeated lack of information provided by the Government in that regard. The Committee observes that the number of workers covered by collective agreements remains low, being estimated at 13.3 per cent in 2018. In light of the persistent and wide gender pay gap, the Committee draws the Government’s attention to the important role to be played by the social partners in giving effect in practice to the principle of the Convention. The Committee asks the Government to provide information on: (i) any actions undertaken to promote the implementation of the principle of equal remuneration for men and women for work of equal value, with the cooperation of the employers’ and workers’ organizations, and the results of such initiatives; and (ii) the number of collective agreements in force containing clauses providing for equal remuneration for men and women for work of equal value.

Enforcement. The Committee notes the Government’s indication that the number of cases regarding gender-based discrimination in employment remains low and that no court decision has been issued regarding more specifically, cases of unequal remuneration between men and women for equal work or work of equal value. The Committee notes the Government’s statement that amendments to the Gender Equality Act that would have given the Labour Inspectorate the mandate to monitor the observance of the principle of equal pay by employers in the public sector were submitted to Parliament but dropped from the proceedings due to expiry of the mandate of the Parliament in February 2019. Taking note of this information, the Committee recalls that where no cases or complaints, or very few, are being lodged, this is likely to indicate a lack of an appropriate legal framework, lack of awareness of rights, lack of confidence in or absence of practical access to procedures, or fear of reprisals (see the 2012 General Survey on the fundamental Conventions, paragraph 870). The Committee asks the Government to provide information on: (i) the proactive measures taken to raise public awareness of the principle of the Convention, the procedures and remedies available; (ii) the impact of such measures on the persistent wage disparities between men and women; and (iii) the number of cases of gender pay inequality dealt with by the labour inspectors, the Gender Equality and Equal Treatment Commissioner, the Chancellor of Justice, the courts or any other competent authority, specifying any sanctions imposed and remedies granted.