These organizations must repeat an analysis of their employee remuneration structures every three years and submit it to the government. Based on this, they will either receive a certification of fulfillment or a fine for failing to comply with the legal requirements.
In 2017, Iceland ranked first in the Global Gender Equality Index of the World Economic Forum for the ninth consecutive year. In 2016, women represented 48% of the members of the Icelandic Parliament. From 2013, there is also a law that requires companies with more than 50 employees to have at least 40% of women in their executive bodies.
Most Icelanders welcome the law
The rate of current pay inequality between men and women in the same positions in Iceland is 14-18%. The government expects the gender pay gap to be removed by 2022 thanks to this new law.
According to information published by the New York Times, the law was generally accepted quite positively, with only about 20% of the total 340,000 Icelanders against it. The level of disagreement was higher among top managers and senior civil servants (42%).
The law has also been criticized by the Confederation of Icelandic Employers which perceive it only as extra costs for everyone except big companies. The association, however, supports equal pay audits which employers should decide to undertake themselves.
The upcoming law will show whether a lawful prohibition of unequal rewards is a magic wand that's able to remove deeply rooted stereotypes.
-kk-