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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Iceland puts onus on firms to pay gender equal wages

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Jeremie Richard -


In a world first, Iceland has introduced a new law requiring employers to prove they are paying men and women the same wage for doing the same work, or face fines.


As of next January, companies in Iceland must prove, with documentation, they are paying gender equal wages.


The country’s biggest bank Landsbankinn has already begun complying with the law.


Elisabet Bjornsdottir, 34, who works in the bank’s treasury department, says she’s never experienced any discrimination vis-a-vis her male counterparts, in a country that is already among the world’s best performers in terms of gender equality.


While Iceland has had a law mandating equal pay for men and women since 1961, the new law puts the onus on the employer.


It’s no longer up to an employee to prove they are being discriminated against, but rather, the employer must prove — in the event of a wage gap — that gender has nothing to do with it.


Concretely, employers will have to evaluate, at regular intervals, the requirements for a job position and each employee’s ability to fulfill them. The process must be documented and carried out transparently.


If the company is in line with the law, a professional certifier (such as private consultancies) will issue the company a certificate valid for three years.


Landsbankinn will spend 120,000 euros to bring itself into compliance. The bank’s human resources chief is in favour of the new legislation. “If it were not written in the law, I think that in 10 years time we would still be doing the same things we are doing today, and the gap would not be closed. So I think it’s a good step towards closing the gap,” said Baldur Jonsson.


For the past nine years, Iceland has led the World Economic Forum’s ranking of the most egalitarian countries.


And yet, the overall wage gap between men and women remains significant, at 16.1 per cent, according to national statistics. That puts Iceland in line with the European average. Around 1,180 companies and 147,000 employees are affected by the reform.


Employers found violating the law will be reported to Iceland’s Gender Equality Agency, and face fines of up to 400 euros per day. The information will also be made public. Small companies have until December 31, 2021 to comply with the law.


But all government ministries, public administrations, and companies with more than 250 employees have to comply by December 31, 2018. — AFP


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