FINLAND (News release) -- UPM will close the unexplained gender pay gap that cannot be explained for example by person's performance, work experience, job grade or job location, i.e. the factors that typically determine a person's salary and its development. The pay equity review, carried out this year, applies to all of UPM's operating countries and is part of the company's fair remuneration policy.

The review starts with a salary analysis of salaried employees and continues later this year with the wages of production workers.

"Although UPM salaries and wages are mostly equal, there appears to be an unexplained gender gap in pay. Most of the unexplained pay gaps are estimated to be related to gender and lower starting salary. This gap is difficult to catch up, even if a person receives normal salary increases during their career. With the review, the deviation is corrected," says Riitta Savonlahti, Executive Vice President, Human resources.

UPM's merit and promotion related salary increases and short-term incentives are fully equitable between the genders. The increases to close unexplained gender pay gaps will take place during 2021. UPM uses the expertise of an independent third-party in the pay equity review.

"We will monitor the development of the pay equity annually and make corrections if necessary. In addition to examining the pay gap between women and men, we regularly monitor the proportion of women among our employees and their career development, as both factors have an impact on the achievement of pay equity."