by Paula Määttä

IV. Finland

B. Scope of the concepts on equal pay

1. The definition of "pay"

Wages are mentioned in Article 8 of the Equality Act, and these include all the elements of pay, both basic wages and various kinds of bonuses. The basic wages may be monthly, weekly, daily, hourly or for piece-work, or different combinations of these. Bonuses can be based on the statute, such as overtime or Sunday work compensation, or on the collective agreement or employment contract, such as end-of-holiday pay. Different kinds of emoluments like company car, lunch, and the like, are defined as pay. In addition, extra benefits obtained from employment must be given to female and male employees equally. (Heikkerö et al. 1993, 65.)

Employees have a right to wages determined on the same grounds and of the same amount regardless of their sex or the kind of pay. It is contrary to the Equality Act to pay piece-work rates to women workers and time wages to men workers for the same work or work of equal value. (Heikkerö et al. 1993, 65.)

After the Equality Act came into force, pension schemes had to treat female and male employees equally. They are not allowed to include special pension provisions that discriminate on the basis of sex, such as provisions stating that female employees may retire on a pension at an earlier age than male employees on similar jobs. No other welfare benefits can be tied to the sex of the employee in this way, with the exception of the special treatment of women during pregnancy and childbirth, which is allowed by the Act. (Heikkerö et al. 1993, 65.)

2. The definition of "equal work"

The Equality Act does not define the meaning of "the same work" or of "equal value", but it equates the same work and work of equal value. In practice, however, the difference is that in relation to jobs of equal value, the contents of the job may be different, whereas the idea of "the same work" necessarily requires a similarity in the contents of the work.

3. Scope of equal pay provisions

The Equality Act covers all employment relationships. It appies to both the public and the private sectors. The Act covers permanent and temporary work, irrespective of whether the work is full time or part time, or done at home. The equal pay provisions apply to the employees of the same employer, which can be, for example, a whole concern with different organizations. Usually the top management of enterprises are not covered by equal pay provisions because they are not bound by collective agreements. They are paid according to separate agreements, which are not publicly known. (Heikkerö et al. 1993, 66, 70.)