Key Provisions of the New Law
Under the new law, companies with 25 or more employees are required to submit their pay data to the government to receive certification of pay equity. This means that organizations must demonstrate they are compensating male and female employees equally, ensuring compliance with the law. Non-compliant companies will face financial penalties. “The law serves as a framework for organizations to assess job roles and confirm equal pay across genders,” explained Freya Halvorsen, a member of the Icelandic Women’s Rights Coalition. “While previous laws mandated equal pay for decades, this new measure provides a tangible way to enforce it.”
Iceland’s Unique Approach
Unlike many countries that have similar legislation, Iceland stands out as the only nation that obligates businesses to show proof of adherence to these equal pay standards. For example, the United States has had an Equal Pay Act since 1963, but it places the responsibility on women to prove pay disparities, often requiring them to take legal action against their employers to seek redress.
Global Rankings in Gender Pay Equity
Iceland has consistently ranked as a leader in gender pay equity according to the World Economic Forum’s Global Gender Gap Report, holding the top position for nine consecutive years. In stark contrast, the United States ranked 49th in the 2017 report, trailing behind nations like Nicaragua and Mozambique. The United Kingdom and Canada fared slightly better, ranking 15th and 16th respectively.
The Path Forward
While there remains much work to be done globally to achieve true pay equity, Iceland’s new law sets a precedent for other countries to follow, emphasizing the necessity for women to receive fair compensation for their work.
Further Reading
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Conclusion
In summary, Iceland’s pioneering legislation against gender-based pay discrimination serves as a powerful example for the world, illustrating that equal pay for equal work is not just a goal but a legal requirement, paving the way for greater gender equality.