Iceland's new equal pay law was supported by lawmakers across the political spectrum, but the fact that the country's government includes an equal number of women inevitably played a role. Iceland equal pay law comes into effect in bid to close gender gap - ABC News Iceland equal pay law comes into effect in bid to close gender gap Posted 3 Jan 2018, updated 3 Jan It also recently became the world’s first nation to make it mandatory for companies and institutions with more than 25 employees to prove that they pay men and women equally for the same job. “There’s increase in employee satisfaction after implementing the standard because people have more confidence in how the company rewards or decides on pay. “We used that framework to develop the Equal Pay Standard.”, After the standard was completed in 2012, the first pilot project began a year later. She had a few concerns when the law was being discussed in the Parliament. “The overall concept had been in preparation for a long time,” says Þorsteinn. Iceland has set a new standard for the world in gender equality at the workplace. Best Parental Leave Policy in the World. A new law makes equal pay for … “Part of the solution is rethinking our economic system, how we value these different jobs and why we value them in this way.”, Next: 36 Bankers, 96 Years In Jail 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. Þorsteinn says that during the pilot phase, the Directorate of Customs found that 80% of the office workers were women, while 80% of the customs officials were men. The trade unions proposed that we should develop some kind of equal pay mechanism, which quickly developed into the methodology of an international management standard. An accredited auditor will conduct an audit, and if the company or institution fulfils the requirements, it will receive a certification that must be renewed every three years. They should have negotiated with the company and had this as a public document before putting through this law. Legal Statement. The law enforcing equal pay between genders came into effect on January 1, 2018, according to Al Jazeera.. “If you impose such a way of working and thinking upon thousands of companies, you’re changing the way they behave on a daily basis,” he says. The new law, which came into force on New Year's Day, … In October, thousands of Icelandic women left work at 2:38 p.m. to protest the gender pay gap. If … That was the first time the Althing, the Iceland Parliament, banned pay discrimination in the … 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. He was also the Managing Director of SA, Hannes G. Sigurðsson, Deputy Director General at SA–Business Iceland, was one of the people who helped draft the Equal Pay Standard. You can imagine how difficult it is for the largest corporations or institutions, like the National Hospital, which is the biggest employer in Iceland,” says Hannes. Employers in the Nordic country now have to prove that they pay men and women in the same jobs equally. “We have to look at the reason why women aren’t applying for customs official jobs,” Þorsteinn says. “They should have negotiated with the company and had this as a public document before putting through this law.”. From what I understand, the USA already has equal pay laws. Companies and institutions were trying out the methodology of the standard, and how simple or complicated it would be to implement,” Þorsteinn comments. First it was New Zealand.Now another small country has joined a global effort to try narrow the gap in pay between genders: Iceland. “If you impose such a way of working and thinking upon thousands of companies, you’re changing the way they behave on a daily basis,” he says. First published on January 3, 2018 / 2:18 PM. “This company charges 10.000 ISK to look at the rules. Depending on the size, smaller companies have more time. You’re not allowed to copy it or post it anywhere. “It’s a step in the right direction, but the battle isn’t over,” she says. In 2015, women earned 14-20% less than men, according to Statistics Iceland. “. The fight for gender equality in Iceland Any feminist can tell you that the aforementioned steps are definitely great strides forward for women, but they did not happen overnight. In other words, the law doesn’t target pay differences between men and women who have jobs of different value. “It started back in 2008 as a voluntary initiative initiated by the social partners. “Why is raising our children to become healthy, happy and informed individuals not the most important job in our society?” Halldóra questions. The bill was initially introduced by Þorsteinn Víglundsson, who served as the Minister of Social Affairs and Equality in 2017. One of the main tasks Icelandic companies and institutions face is to define which jobs are of equal value. We looked at the model of other international standards like environmental standards, management standards and quality standards,” Hannes explains. The new Equal Pay Law addresses pay discrepancies between women and men who are doing work of equal value. It’s not a transparent document,” Halldóra continues. The law would take effect from January. OMARSDOTTIR: Well, we in Iceland have had an equal pay law in effect since 1961. “The gender pay gap is unfortunately a fact in the Icelandic labour market and it’s time take radical measures; we have the knowledge and the processes to eliminate it,” he said. Companies and institutions with more than 250 employees are required to obtain certification by the end of this year, because they have more resources and infrastructure to implement the standard. “. The walkout was timed to highlight the calculations of women's rights groups, who say the pay gap means after that time each day, women are working for free. “That was an ongoing project between 2013 and 2016.”. Although Iceland first passed legislation on equal pay as early as 1961, the gender pay gap persisted. If a workplace does not obtain certification by the deadline, it will receive a fine of up to 50,000 ISK (around €397) per day. The law would take effect from January. Hannes from SA–Business Iceland thinks that the standard is an extra burden for companies and it should be kept voluntary. Market data provided by ICE Data Services. The new Equal Pay Certification law took effect in Iceland at the beginning of this year. 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. The groundbreaking law, which took effect In 2018, fines companies that don’t offer offer equal pay for equal work. He was also the Managing Director of SA–Business Iceland from 2013 to 2016. ”. “You’re still gonna have a lot of women in society who get paid a lot less than men, not because they’re working the same jobs, but because women choose different jobs than men do, and the jobs they choose are undervalued.” For example, some of these jobs are nurses, teachers, cleaners, etc. Buy subscriptions, t-shirts and more from our shop right here! / CBS News. It’s not a transparent document,” Halldóra continues. 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. “If you want to bring about change, sometimes you just have to force it,” he argues. The law took effect on January 1st 2018 and all employers are required to have undergone their first certification by the end of 2021, and then renew their certification every three years. . A grand, continuously updated database of Iceland's main restaurants, clubs, cafes, shops, museums, tours and tourist attractions as well as a thorough events listing. … 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. Iceland to enshrine equal pay for women and men in law This article is more than 3 years old. With the new law in effect, the Icelandic government hopes to close the gap entirely by 2022. Now one country has decided to end the gender pay gap once and for all. The country hopes to eradicate the gender pay gap completely by 2022. Although Iceland first passed legislation on equal pay as early as 1961, the gender pay gap persisted. Iceland has made it very difficult to pay women less than men. Iceland is now the first country in the world to require companies to prove that they are not paying women less than men under an amendment to the Act on Equal Status and Equal Rights of Women and Men that came into effect on Jan. 1, 2018. Stockholm, April 5 Iceland’s Parliament has presented a Bill that would require public and private businesses to prove they offer equal pay to employees, in what would be the first such requi For example, due to family. In 2015, women earned 14-20% less than men, according to. We'll assume you're ok with this, but you can opt-out if you wish. This company charges 10.000 ISK to look at the rules. 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