2018 Update Law on Equal Pay Certification based on the Equal Pay Standard in Iceland. The Gender Pay Gap = not Cool! In Iceland, such discrimination has been prohibited by law since 1961. Work Research InstituteOsloMet – Oslo Metropolitan University,Postboks 4 St. Olavs plass, NO-0130 Oslo. The question now is how effective a measure like this will. READ MORE: Iceland to become first country to make companies prove they offer equal pay The bill was tabled and passed last spring, but only took effect on New Year’s Day. A few years ago he had a small pay rise as a result of the equal pay standard. The most difficult task was to classify the different roles, and to establish rankings. This gives the wage system a certain discipline. Iceland, equal pay and enforcing the gender pay gap regulations. Aðalsteinn has heard that employees generally wonder whether the equal pay standard will threaten their freedom to negotiate their pay. “I think companies should be able to reward staff who show initiative and skills. Though statistics vary widely on the domestic wage gap, many equal-pay advocates cite a … All secretaries are on the same wage, all specialists are paid the same and all managers are paid the same,” says specialist Anna Lea Gestsdóttir. The Chairman is one of them. Subscribe to the latest news from the Nordic Labour Journal by e-mail. Please attempt to sign up again. The 2017 law doesn't just expose a company that violates the principle to lawsuits. Employers will face fines if they are found to be in violation. No other country has gone as far as Iceland in demanding equal pay for equal work. Should an economist working with customer service be paid differently from an economist working with stocks and shares? Iceland introduced an Equal Pay Standard in 2012, ÍST 85:2012 (Equal wage management system - Requirements and guidance). With the new law in effect, the Icelandic government hopes to close the gap entirely by 2022. “The equal pay standard is the best weapon employers have been handed for many decades,” says Friðbert Traustason, Chairman of The Confederation of Icelandic Bank and Finance Employees. Gender pay gaps always represent a problem for society. Why Has GameStop's Stock Gone Up So High Recently? In 2015, women earned 14-20% less than men, according to Statistics Iceland. Anna Lea wants to know whether the equal pay standard makes it impossible for individual workers to secure a pay rise after getting further education for instance, or whether one workers’ pay rise automatically leads to other workers on the same wage level getting the same rise. This appears in the January 15, 2018 issue of TIME. Still, Iceland’s workforce is thought to be far more progressive on equal pay than that of the U.S., which recently ranked 28th on the WEF report that Iceland topped. This might make it impossible to reward a good employee through a pay rise, or to pay a bonus to someone who shows initiative and works independently. The town's population is growing and has reached around 3,000 people. In an eyebrow-raising move, the country this year launched a new law requiring public and private employers to show that all employees are being paid equally for equal work. Iceland’s equal pay standard – the employer’s best weapon? From Reykjavík in the south to Sauðárkrókur in the north – companies across Iceland are introducing the equal pay standard which aims to eradicate gender pay gaps. Equal pay certification under the Standard ÍST 85 is designed to confirm that when decisions on wage are taken they are based only on relevant consideration. Anna Lea works at the Icelandic Regional Development Institute Byggðastofnun in Sauðárkrókur in Northern Iceland. Why should anyone work more and show enthusiasm if she or he stands no chance of getting rewarded for their extra effort? Byggðastofnun is based in Sauðárkrókur in North-Western Iceland. Iceland’s equal pay standard – the employer’s best weapon? Aðalsteinn argues the equal pay standard puts the wages into a system where all procedures are documented and all salary decisions are justified. Use of this site constitutes acceptance of our. Under the new law, companies and government agencies that employ at least 25 people will be fined if they can’t prove they pay men and women equally. Agriculture is key to this region, which gets most of its income from food production. All Rights Reserved. The economy is largely based around agriculture, but also fisheries. Text Guðrún Helga Sigurðardóttir, photo: Friðrik Friðriksson. Aðalsteinn Þorsteinsson, the Director General for Byggðastofnun, explains that regions become vulnerable and that there is a risk of more social problems if there is an imbalance between the genders. Right now, Iceland’s largest businesses are introducing the equal pay standard. Friðbert Traustason from The Confederation of Icelandic Bank and Finance Employees is not certain that the equal pay standard will close Iceland’s pay gaps. Anna Lea says workers feel they are stuck at certain wage levels, and that they do not know how to go about getting a pay rise, or whether it is at all possible to get one because the equal pay standard limits their opportunities. Already in 1961, the Icelandic Parliament approved the Equal Pay Act to ensure equal remuneration for women and men for equal work or work of equal value. By signing up you are agreeing to our, Iceland's Prime Minister Talks Climate Change and Gender Equality Over Ice Cream, Sign up to receive the top stories you need to know now on politics, health and more, © 2021 TIME USA, LLC. The equal pay standard makes this impossible,” saysFriðbert. Iceland has had legislation supposed to guarantee equal pay for men and women for a very long time. Friðbert also believes the equal pay standard reduces people’s private initiative at work. Nearly 80 companies have already introduced the standard, and more will do so later this year. Over and above that, she says, is the European Union right to equal pay, which gives workers the right to go to civil court or a tribunal. Byggðastofnun's staff are all members of the medium-sized finance cooperation SFF – The Icelandic Financial Services Association, which counts 4,000 members in total. — On March 8, 2017, Prime Minister Bjarni Benediktsson announced in a meeting in New York that Iceland planned to mandate equal wages for men and women. Iceland is the first country to take the fight against the gender pay gap a step further, requiring companies to proactively get equal pay certification from the government. On Jan. 1, Iceland became the first country in the world to make it illegal to pay men more than women for doing the same job, an inequality that exists in almost every country. ... to undergo certification every three years to show they adhere to the Equal Pay Standard. It's free. Companies and state organisations that have been certified must be able to show there is no more than 3 % differences in wages. You can unsubscribe at any time. This has yet to change. Aðalsteinn Þorsteinsson, the Director General for Byggðastofnun, explains that regions become vulnerable and that there is a risk of more social problems if there is an imbalance between the genders. If there are some faults in the system, you carry on developing the standard until it is perfect, he thinks. Now another small country has joined a global effort to try narrow the gap in pay between genders: Iceland. This landmark piece of legislation will make Iceland the first country in the world to truly enforce equal pay between women and men. Byggðastofnun is financed by the Icelandic state. Small country has joined a global effort to try narrow the gap entirely by 2022 Metropolitan University Postboks. Who do a good job Europe are essentially working for free boss and get a rise. World to legalize equal pay standard is accepted in Iceland Interpreter Tied to far Right natural for to... 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