Iceland equal pay law set to end gender pay gap But those days are over. With this new legislation, Iceland hopes to close its gender pay gap by 2022. The policy requires companies with more than 25 employees to certify that they pay equally, regardless of gender or ethnicity. Although primarily a socio-economic policy issue, the Icelandic example shows that the law can play a huge part in the fight against gender pay disparities. While there are many causes of the gender pay gap, including occupational segregation and unequal caring responsibilities, paying women less than men also contributes to it. Time’s up. This fight for progress is nothing new. The pandemic has made it clearer than ever that we need better care that honors everyone’s humanity. The gender pay gap in Iceland is only half of the global average. While other countries focus on gender pay, Iceland has put the onus on employers to show they follow the existing laws around equal pay. GENEVA (18 January 2018) – Iceland is setting the world an example on equal pay for work of equal value which other States should follow, according to UN human rights experts. Nicaragua, France and Iceland are on track to become the first three countries to eliminate their gender gap. Iceland is the world's most gender equal country, according to the World Economic Forum (WEF), which analysed gaps in education, health, economic opportunity and political empowerment. The analysis therefore revealed that there is no unexplained gender-based pay gap at the Bank. Largely, however, the problem still persists even though Iceland has been ranked first on the World Economic Forum’s Gender Gap Index for nine years. The Central Bank of Iceland's gender-based pay gap in 2020 is 1.6% in favour of women, according to the pay analysis conducted in September 2020. Iceland became the first country in the world to legislate to ensure equal pay between men and women. This landmark piece of legislation will make Iceland the first country in the world to truly enforce equal pay between women and men. The United States – ranked 49 th in the Global Gender Gap Report – is moving much more slowly on closing the gender pay gap. Let’s end the scourge of unequal pay. Iceland is the fairest country in the world, when it comes to how men and women are treated. In cases where a workplace has not acquired certification, unions and employers’ organizations can report it to the Centre for Gender Equality. For women fighting the gender pay gap discrimination law is limited January 10, 2018 11.58pm EST. Iceland's government has committed to eradicate the gender pay gap by 2022 . Read: Fighting gender stereotyping with global education: How women can reclaim the workplace. Men, on the other hand, earn almost double - 21000 USD a year. Remote, tiny Iceland is currently leading the way in closing the pay gap between men and women. It definitely is not down to just one factor, but high trade union density (80 percent) and collective bargaining (90 percent) rates have certainly helped. Iceland’s prime minister has announced proposals for legislation to close the country’s 14 to 18 per cent gender pay gap Iceland’s prime minister Bjarni Benediktsson has announced legislation to make equal pay mandatory in the country – regardless of gender, ethnicity, sexual orientation or nationality. Meanwhile… https://t.co/q8zRQuQO9f, Inequality.org is a project of the Institute for Policy Studies, Content licensed under a Creative Commons 3.0 License, I Am Not a Mop Bucket for Wealthy Families, Covid is Widening Educational Inequalities for Children Around the World, In the Age of Covid, Elder Care Should Be an Election Issue. Part of … This discrimination is popularly known as the gender pay gap. However, Icelanders are not happy that their gender pay gap adjusted for working hours (the measure of the difference between men’s and women’s average earnings across an organization or the labor market expressed as a percentage of men’s earnings) remained at 14 percent, albeit well below the OECD average. Alice Orchiston, University of Sydney. Amongst other things, estimates suggest that a 1 percent increase in social dialogue coverage reduces the gender pay gap by 0.16 percent. Iceland leads the way on closing gender pay gap, UN experts say . A major turning point in the global fight for gender pay parity was marked on 1 January 2018 when a new Icelandic law on pay certification came into force. Iceland’s equal pay for equal work system is still in the early stages, but initial signs suggest that requiring organizations prove they compensate employees fairly may be very effective. Yet one of the most persistent barriers to women’s economic empowerment and inclusive growth remains unequal pay. The parliament, which is nearly equally gender balanced, plans to completely close the gender wage gap by 2020. In fact, collective bargaining is generally an effective way of promoting gender equality. Amongst other things, the equal pay standard (adopted by tripartite consensus) assesses a company’s pay policies and classification of jobs according to equal value and wage analysis on the basis of the classification. The adjusted gender pay gap was 6.6% in 2008 but had dropped down to 4.5% in 2016. “The main reason for the gender pay gap in Iceland is the fact that professions that are female-dominated tend to get lower wages than professions dominated by men,” she said. Only in seven countries are … In fact, equal pay legislation can be used to empower the social partners to find ways to reduce and eventually eliminate wage disparities. However, a holistic approach must be taken as gender pay gap and wage transparency reporting without sanctions is simply insufficient. The law ensures that women and men are paid equally, with those who do not comply with being forced to pay a fine. Even when it comes to equal pay litigation, there is evidence to suggest that without formal pay structures associated with collective bargaining, claimants’ law firms would not be in a position to adequately fight equal pay or back pay claims. So a decade ago the country's unions and business community... – Listen to How Iceland is Fighting the Gender Pay Gap by People Fixing the World instantly on your tablet, phone or browser - no downloads needed. If countries really want to emulate Iceland, they must also repeal restrictive trade union and labor laws that stifle union organizing and collective bargaining. At Walgreens, workers start an $10 an hour. For women fighting the gender pay gap discrimination law is limited. What WEF 2017 Global Gender Gap Report found: As per WEF's 2017 report on gender pay gap, on an average, women earn around 12000 USD per year. This legal power to sanction firms is a real game-changer. Research has shown that the gender pay gap is lowest in countries where overall equality is higher and in countries where collective bargaining coverage is high. The new law took effect on the first day of 2018 adding to an already impressive list of reasons why Iceland is one of the best places to be a woman. We have a long way to go before the global gender gap completely closes, but Iceland is inching closer to perfect parity between women and men. Although unions often fund these cases, the individual nature of equal pay litigation still poses a major problem, especially for women workers in unorganized sectors. 1. While the gender pay gap is small (if growing) among young women, it widens dramatically as women hit their child-rearing years and still stands at 18.4% for all full- and part-time workers. Introduced in 2018, the policy requires companies and institutions with more than 25… The New Year ushered in a new wage policy in Iceland, where it is now illegal for companies to pay men more than women for the same job. The UK came in 15th place in 2017, with a 16.9 per cent pay gap between men and women. One of the causes of this is the construction and implementation of equal pay laws. The impacts are particularly severe in Kenya, where the country’s large number of Hiv/Aids orphans are struggling through yet another pandemic. first democratically elected female president. The report finds that women are paid on average 32% less than men. Iceland’s new centre-right government, spearheaded by the newly elected prime minister Katrín Jacóbsdóttir, a noted feminist and environmental activist, proposed this new legislation which was also supported by the opposing party members. For the past nine years, it has placed at the top in the World Economic Forum’s Global Gender Gap Report, which measures differences between women and men in health, economics, politics, and education. The truth is Iceland has always been at the forefront of the fight for equality. A major turning point in the global fight for gender pay parity was marked on January 1, 2018 when a new Icelandic law on pay certification came into force. The law requires companies with 25 or more employees to obtain certification on the basis of an equal pay standard to prove that they offer equal pay for work of equal value, regardless of gender. A new law makes equal pay for equal work a must in the country - irrespective of gender, ethnicity, sexuality or nationality. The Centre can then impose on the workplace a formal demand to rectify the situation, failing which it can levy fines of up to 50,000 Icelandic krona ($488) a day. This is one of the main reasons why Iceland took the bold step of instituting equal pay certification. I think the gender pay gap is massive for a few reasons, but I don’t actually think it comes down to women not negotiating their salaries. For example, job evaluation schemes were created as part of the collective bargaining system decades ago with the aim of creating gender-neutral pay mechanisms. Much more effective, in any case, than the alternatives currently in place elsewhere. However, a holistic approach must be taken as gender pay gap and wage transparency reporting without sanctions is simply insufficient. The Central Bank set for itself the objective of reducing the gender-based pay gap to below 2% by 2020. Here are some facts about the gender pay gap. The new law makes it illegal for companies and government agencies, which employ at least 25 workers, to operate without a certification proving their equal-pay policies. Yemen is the least gender-equal, it found. 12 January 2018 Laws alone cannot close the pay gap. Women may go in asking for less, because they are less overt about their value, which is why I think you should always ask for more than you even think you deserve. Romney is talking about … A new report prepared by Statistics Iceland finds that the gender pay gap decreased by a third between 2008 and 2016. If women discover they are earning less than their male counterparts for the same jobs, their legal avenues for pursuing equal pay are limited. In 2016 the Nordic nation introduced a specific equal pay bill making it illegal for men and women not to be paid equally in like for like roles. If businesses don’t abide by the law, they are fined. Six months since Iceland put the law into effect, essentially making it illegal for businesses to pay women less than men for the same job, the results are paying off little by little with a few cases of women receiving a wage increase when it was realised that their pay was not matching their male counterparts. So, what is the secret of Iceland’s success? I think a lot of women actually do this, if not at their first job, at later jobs. firms of more than 250 employees,” Romney says. How Does the Iceland Pay Gap Compare to the U.S.? Largely, however, the problem still persists even though Iceland has been ranked first on the World Economic Forum’s Gender Gap Index for nine years. Domestic workers like me need Covid-19 relief, regardless of our immigration status. Although primarily a socio-economic policy issue, the Icelandic example shows that the law can play a huge part in the fight against gender pay disparities. Author. Sign up for our weekly newsletter- the latest horror, humor, and hope around economic inequality in your inbox every Monday. This landmark piece of legislation will make Iceland the first country in the world to truly enforce equal pay between women and men. The Icelandic law is so radical precisely because it collectivizes the responsibility of ensuring gender pay parity. Diese Statistik zeigt den unbereinigten Gender Pay Gap, d.h. den geschlechtsspezifischen Lohnunterschied ohne Anpassungen zwischen Männern und Frauen in Island von 2008 bis 2018 (in Prozent des durchschnittlichen Bruttostundenverdienstes der Männer) im privaten und im … In many parts of the world, the principle of equal pay is well-defined in national constitutions, labor and anti-discrimination laws, and in collective agreements. Although Iceland is thought to be the best country in the world for gender equality, it lags behind in one metric: the gender pay gap. This does not mean Iceland has managed to eliminate the gender pay gap: Far from it. Harvard Business Review - In most countries, men and women doing the same work earn different amounts. Based on the earnings of full-time workers from 1959-2017, the wage gap in the U.S. will not close until 2059. It was found that Icelandic men still make up to 12% more than women doing similar work, according to BSI Iceland, a consultancy company policing the new equal pay law. Closing the gender gap means women can have the same expectations as men in the fields of health, education, work and political representation. The new UK gender pay gap regulations will only apply to 34% of employees, i.e. Read more: Iceland ranked as most gender equal country in world for the 9th consecutive year. The difference between the average gross earnings of female and male employees is known as the 'gender pay gap'. And despite efforts to close it, particularly amongst advanced industrial countries, it persists. For example, many legal systems depend on individual women to enforce equality by bringing court claims. The law requires companies with 25 or more employees to obtain certification on the basis of an equal pay … Iceland, a small island nation in the North Atlantic with a population of 330,000, also had the first democratically elected female president in 1980 and the first openly gay prime minister in 2009. Iceland and its Nordic cousins have always been considered more advanced in gender equality, with Finland, Norway and Sweden coming second, third and fourth respectively in the 2016 World Economic Forum survey. Iceland's world-first gender pay laws come into effect, requiring businesses with 25 or more employees to prove they are paying men and women fairly to do the same jobs. Based on current rates of progress, these three nations will have gender parity by 2050. Gender Pay Gap . Share. If countries really want to emulate Iceland, they must also repeal restrictive trade union and labor laws that stifle … It was found that Icelandic men still make up to 12% more than women doing similar work, according to BSI Iceland, a consultancy company policing the new equal pay law. Discrimination law has limited capacity to address the gender pay gap, writes legal expert Alice Orchiston. Icelandic women are paid on average 82% of what men are paid for the same work, which is a better score than any other country in the world. No chain store empire employing essential workers pays less. In Iceland, the current gender pay gap is somewhere between 14 to 18% , according to the World Economic Forum. 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