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It will force employers to think differently.”, It will not be straightforward, she concedes. Under the … And the public shame, it is hoped, will be worse. In March 2017, the Icelandic government promised to eliminate the gender pay gap by 2022. Ladies of Iceland, rejoice: The country implemented a new law Monday that will make it illegal for male employees to be paid more than women doing the same job. Employers will face fines if they are found to be in violation. ‘Iceland has made it illegal to pay women less than men!’ crowed headlines in January, to a huge collective cheer and social media high-fives. People have a drink at a bar in Reykjavik, Iceland, where equal pay is now being legally enforced. If politicians want to wait until no one opposes it, it will never happen.”. “This will not eliminate the gender pay gap overnight,” says Maríanna Traustadóttir, an equality adviser at the Icelandic trade union confederation ASI. As of Jan. 1, the legislation said that any company or government agency with 25 or more staff members will “ have to obtain government certification of their equal-pay policies ,” according to Al Jazeera. For nearly a decade, it has been rated. Research & Commentary February 09, 2018. by Ruwan Subasinghe. The government has committed to closing the gender pay gap by 2022. Several companies already have.”. Large firms and institutions such as government ministries and the national hospital, with workforces of more than 250 people, have until the end of this year to become certified; those with fewer than 90 employees but more than 25 have until the end of 2021. A WarnerMedia Company. In eleven years, less than three minutes has been gained anually towards eliminating the gender pay gap, English-language Icelandic news site Grapevine reported. If they fail to do so, they risk being fined. Iceland has been at the forefront of fighting gender inequality for years. Morningstar, Inc. All Rights Reserved. might and innovations whose time might have come. Factset: FactSet Research Systems Inc. 2018. Like Iceland, the U.S. has laws in place – such as the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 – outlawing pay disparity on paper, but currently no such laws are quite as rigorous in practice. If you’re having trouble using the form, click here. Lawmakers took action, announcing on International Women’s Day that Iceland would require companies to prove they pay employees equal rates for equal work, or pay the fine. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. “It was a carrot, win-win,” Sigurðsson says. Hannes Sigurðsson of the Business Iceland confederation says it was considered sound business sense, likely to “improve a company’s image in the eyes of its customers, and make its workforce a whole lot happier”. The policy requires companies with more than 25 employees to certify that they pay equally, regardless of gender or ethnicity. “The pay gap was hidden behind a lack of transparency,” says Magnea Marinósdóttir of the welfare ministry’s equality unit, noting that the standard could be used to justify a pay difference as much as to eliminate it. It was the first to directly elect a female president, nearly half its MPs and company directors are women, and first-class daycare and parental leave help ensure almost four in five women have jobs. (The two terms, gender pay gap, and equal pay are not the same. ) Gender inequality is wrong. “You need to put resources into it. To be effective, pay equity laws need to be combined with strong protections for union organizing and collective bargaining. Our experience is that you need legislative measures to move things forward. It’s doable. Showing why it's a leader in gender equality, Iceland's new legislation makes it illegal to pay men and women differently for the same job. Equal pay in Iceland 01:04. The new rules don't mean that companies must pay everyone doing the same job the exact same salary. All Rights Reserved.Terms Turns out, it might be good for business. Taking Iceland’s Gender Pay Gap Law Global. The fine for those that do not comply is ISK50,000 (£350) a day. All rights reserved. Iceland’s equal pay law will certainly bring the country much closer to eliminating compensation disparities, but there are still some obstacles in the way. To achieve this lofty goal, the island introduced a new measure to help policymakers meet that objective.. Starting January 1, Iceland will make it illegal to pay men more than women. should report on by contacting us at theupside@theguardian.com, Rósa Guðrún Erlingsdóttir, head of the equality unit at Iceland’s welfare ministry, says equality “won’t come about by itself, from the bottom up alone. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 Hopefully, more countries follow in Iceland’s footsteps and make it illegal to pay men more than women too. Actress and gender equality campaigner Patricia Arquette tweeted: "Yoo Hoo!! Iceland has the best track record on gender equality in the world, according to the World Economic Forum. The possible fines are set at around $500 per day in the current legislation. Photo: Unsplash Despite all the recent strides toward equality, the gender pay gap is still a very real thing in America and beyond. Under the new legislation that came into effect on 1 January, companies and government agencies with more than 25 employees will be required to obtain government certification for their equal-pay policies. 3. “Now we need the effort.”. Closing the pay gap could add an extra $250 billion to the GDP of Britain, $1,750 billion to that of the United States, and $2.5 trillion to China's GDP, it said. Under the new legislation that came into effect on 1 January, companies and government agencies with more than 25 employees will be required to obtain government certification for their equal-pay policies. For the latest business news and markets data, please visit CNN Iceland has made it illegal to pay men more than women. It’s easier for big companies, with whole HR departments.”. Mainly, I’m just so proud we actually made it happen.”. ", Sam Smethers, who campaigns for women's rights as CEO of the Fawcett Society, said equal pay "isn't just about what is in women's interests.". For the past nine years, it has placed top in the World Economic Forum's Global Gender Gap Report, which measures differences between men and women in health, economics, politics and education. Women are paid less than men in every country in the world, according to research by the World Economic Forum. "Holding women back holds our economy back. It's a step to eradicate the wage gap by 2020 and companies will need to pass certification that they have equal pay for men and women. Tackling gender inequality and discrimination is good for business and for all of us," she said. At the beginning of 2018, Iceland made it illegal to pay men more than women – and now they’re enforcing it. and/or its affiliates. Discrimination based on gender is already illegal in many countries -- but research shows the legislation is far from effective. Cable News Network. Closing over 85 percent of its overall gender gap, Iceland made it illegal for women to be paid less than men in January 2018. Related: The ranks of women CEOs got even smaller. 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. This can be a real impetus for change.”, Erlingsdóttir says the Icelandic model could also be adopted elsewhere: Portugal is exploring doing so, raising the possibility that Iceland’s equal pay standard could eventually become a European one. Most stock quote data provided by BATS. Although Iceland first passed legislation on equal pay as early as 1961, the gender pay gap persisted. So Valdimarsdóttir and her association were one of many campaign groups to back a plan that finally resulted, last month, in the island becoming the first country in the world to legally enforce equal pay. “But it is the best toolbox I have seen, and it will make a big difference. Read more: Iceland Starts 2018 in Style by Making Gender Pay Gap Illegal. Within five years, by “putting the gender glasses on before taking every single decision”, it had boosted the proportion of women in management positions from 29% to 49%. The new law has resonated with activists around the world. It doesn’t reflect the pay gap, or gender-based violence. Privacy Policy. We would have preferred the process to be bottom-up.”, Others, however, are delighted. Could it be because news is almost always grim, focusing on New Law In Iceland Aims At Reducing Country's Gender Pay Gap The law, which went into effect on Monday, requires employers with 25 workers or more to prove that they pay … n the face of it, Iceland is a good place to be a woman. New Law In Iceland Aims At Reducing Country's Gender Pay Gap The law, which went into effect on Monday, requires employers with 25 workers or more to prove that they pay … We still live in a very gendered reality in Iceland. The reasons link to legal, social and economic factors, and extend beyond 'equal pay for equal work'. On the face of it, Iceland is a good place to be a woman. Iceland is the first country to take the fight against the gender pay gap a step further, requiring companies to proactively get equal pay certification from the government. “Employers can take into account experience, qualifications – it’s just that it now has to be transparent, and justified,” Marinósdóttir adds. But it’s possible, and we can do it. Despite an equal pay act that dates back to 1961, Icelandic women still earn, on average, between 14% and 20% less than men. The legislation came into force on Monday, the first day of 2018. ", Yoo Hoo!! Ever wondered why you feel so gloomy about the world - even at a time when humanity has never been this healthy and prosperous? But despite the country's global leadership, Icelandic women were still paid 78.5% of men's total employment income in 2014, according to the country's welfare ministry. “The standard is simply designed to eliminate factors that are irrelevant by law – such as gender. Over the same period, its adjusted gender pay gap shrank from 8.4% to 2.1% – and now stands at 0.2% in favour of women. Do Not Sell. Men are still being paid much more than women, and their earnings are increasing more rapidly, according to the World Economic Forum’s wide-reaching Global Gender Gap Report 2017 . Readers can recommend other projects, people and progress that we First published January 3, 2018: 12:14 PM ET, paid less than men in every country in the world, These are your 3 financial advisors near you, This site finds and compares 3 financial advisors in your area, Check this off your list before retirement: talk to an advisor, Answer these questions to find the right financial advisor for you, An Insane Card Offering 0% Interest Until Nearly 2020, Transferring Your Balance to a 14-Month 0% APR is Ingenious, The Top 7 Balance Transfer Credit Cards On The Market Today, Get $300 Back With This Outrageous New Credit Card. In a world first, Iceland has made it illegal to pay men more than women. The law requires organizations with at least 25 full-time employees to receive government certification that they’ve demonstrated pay equality. “The government has turned it into a stick.”, The process – assessing the worth of very different jobs, classifying and ranking occupations, analysing salary structures, collating and recording data, making sure the new system meshes with collective labour agreements – is “quite complex”, he says. At this time, we are only able to find a few gap year opportunities in Iceland, listed below. What else should we cover? When Icelanders found out it would be another 122 years before they closed the gender pay gap at the current rate, that was unacceptable. She served from 1980 to 1996. the first country in the world to legally enforce equal pay, international ISO environmental management standards, Iceland’s women famously went on strike for a day. Iceland’s commitment to closing its gender pay gap by 2022 comes as other countries across the world are stalling on economic gender parity. Anything to do with care or education is paid less.”. Firms with more than 250 employees will have to get the certification by the end of this year, while smaller companies will follow in the next few years, according to their size. “Between engineering, for example, and nursing or teaching. ... law was announced on March 8 on International Women's Day 2017 as part of a drive by the nation to eradicate the gender pay gap by 2022. It was, however, designed to be voluntary. Under new legislation, which came into force on Monday, agencies of government and companies employing more than 25 people will have to prove they offer pay parity to employees regardless of gender, nationality, race or sexuality. Employers still have the option of rewarding their workers based on experience, performance and other aspects. “It has been illegal for decades, for jobs that are worth the same, to pay people differently because of gender, but still it happens – it’s simply been allowed,” says Valdimarsdóttir, who is now the chair of the Icelandic Women’s Rights Association, in her bright offices in the country’s capital. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. In a parliament where nearly 50 percent of all members are women, Iceland has passed a new law making it illegal to pay men more than women. Business. Equal representation benefits everyone! People accept that; we saw it with mandatory quotas for women on company boards. Iceland just made it illegal to pay women less than men for the same work, becoming the first country to do so, HuffPost reports. It could equally be used to eliminate discrimination by race or disability.”, Legislation, she is convinced, “can impact attitudes and behaviour. The current gender pay gap in Iceland is about 14% to 18%; the government reportedly plans to eradicate it by 2022. With the new law in effect, the Icelandic government hopes to close the gap entirely by 2022. But we now have clear guidelines to follow, courses to go on, specialist software, new consultants to help. In 2008, it was 2.25pm. On Jan. 1, Iceland made it illegal to pay men more than women—an inequality that exists (with respect to average gross hourly and annual income) in … Iceland has become the first country in the world to make it illegal for men to earn more money than women for doing the same job. But I think it’s clear there is opposition to the method. It is now illegal for men to be paid more than women in the small Nordic island country of Iceland. Now one country has decided to end the gender pay gap once and for all. For nearly a decade, it has been rated the world’s most gender-equal country. celand has made it illegal to pay men more than women. One country — and yes, sadly only one, and the first one to do so — has recently made gender-based pay discrimination illegal. Employers in the Nordic country now have to prove that they pay men and women in the same jobs equally. Equal pay - paying men and women the same for jobs of equal value - has been a legal requirement in Iceland, the UK and many other countries for decades. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. Vigdís Finnbogadóttir, pictured in 1980, was the world’s first directly elected female president. https://money.cnn.com/2018/01/03/news/iceland-gender-pay-gap-illegal The standard was published in 2012 and welcomed by Iceland’s trade unions and employers, who helped design it. The company’s chief executive, Bjarni Bjarnason, says the net outcome has been “more open discussions, higher productivity, greater job satisfaction, improved decision-making, higher morale, and an all-round far better atmosphere”. “That WEF index is fairly crude. A new law enforcing equal pay between genders came into effect on January 1, 2018, according to Al Jazeera. As it stands, the legislation is staggered over four years. Iceland's new leader: 'People don't trust our politicians', Tesco equal pay claim could cost supermarket up to £4bn, Trust is broken at BBC over equal pay, Carrie Gracie tells MPs, Mothers working part-time hit hard by gender pay gap, study shows. Iceland has become the first country in the world to make it illegal for men to earn more money than women for doing the same job. Based on the earnings of full-time workers from 1959-2017, the wage gap in the U.S. will not close until 2059. Now Iceland has become the first country in the world to enforce equal pay, First published on Tue 20 Feb 2018 01.00 EST. Morningstar: © 2018 This “It has been illegal for decades, for jobs that are worth the same, to pay people differently because of gender, but still it happens – it’s simply been allowed,” says Valdimarsdóttir, wh All times are ET. Iceland has become the first country in the world to mandate that women receive the same pay as their male colleagues for doing the same work. The new law requires employers to show, through certification by an accredited auditor, that their pay management system complies with a national equal pay standard modelled on the international ISO environmental management standards familiar to all companies. So it came as a shock for Fríða Rós Valdimarsdóttir to learn, when she was managing a key team of 10 home carers at Reykjavik council a few years ago, that male colleagues in other departments, with far fewer responsibilities than her, were being paid a great deal more. The gap between men’s and women’s pay is a global problem. If they are not in compliance, they face a fine of about $500 a day. It doesn’t make any sense why two people doing the same job would get paid different wages. None of Business Iceland’s members have openly criticised the new law, Sigurðsson says. as our journalists scour the planet looking for pioneers, trailblazers, best practice, unsung heroes, ideas that work, ideas that 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. “It’s quite difficult to come out publicly against a measure that enhances gender equality. Despite its image as a paradise of fairness, women earn less than men. A new female Prime Minister, and a Parliament where nearly half of its members are women. Within four years from January 2018, any public or private body in Iceland employing more than 25 people that has not been independently certified as paying equal wages for work of equal value will face daily fines. “There will be challenges. At Go Overseas, we strive to provide the most comprehensive program and gap year listings available. The law came into effect on Monday and applies to all companies and organizations with at least 25 full-time employees. under which this service is provided to you. “The legislation will take some time to bed in, of course,” Valdimarsdóttir says. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Even here, the patriarchal culture, a male sense of entitlement, is deep-rooted. Disclaimer. Some in Iceland still do oppose it, albeit cautiously. Traustadóttir cites Reykjavik Energy, the parent company of Iceland’s largest power provider, which was forced to fire one-third of its workforce in the aftermath of the financial crash, but seized on its subsequent restructuring as an opportunity to become a fully gender-equal employer. © 2020 How long will it take to close the gender pay gap? “The information is there, and the education is there,” she says. Companies that fail to… #MeToo was as shocking here as anywhere.”, Her colleague, Berglind Rós Magnúsdóttir, says a broader “re-engineering” of society is still needed. confrontation, disaster, antagonism and blame? But the country still had a persistent pay gap just over 16 percent as of last year. We’ve seen that time and again. In 2015, women earned 14-20% less than men, according to Statistics Iceland. ‘We have had legislation saying that pay should be equal for men and women for decades now, but we still have a pay gap.’ The pay gap in Iceland is currently 14 to 18 per cent, which already makes it the globe’s most gender-equal country, as ranked by the World Economic Forum (WEF) for nine years in a … In Iceland it is now Illegal to Pay Women less. This article is part of a series on possible solutions to some of the world’s most stubborn problems. 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. It's a step to eradicate the wage gap by 2020 and companies will need to pass certification that they have equal pay for men and women. But there is confidence the legislation is a major step in the right direction. The UK reported an average 16.9% pay gap between men and women in 2017. As first reported on Al Jazeera, the legislation, which came into force on Monday, the first day of 2018, makes Iceland the first country in the world to legalise equal pay between men and women. A new law making it illegal to pay men more than women has taken effect in Iceland. In Iceland it is now Illegal to Pay Women less- https://t.co/4HBI9gdvJ7, Tennis player Billie Jean King added: "Iceland again leading in the equality movement. We have our fair share of toxic masculinity. series is an antidote, an attempt to show that there is plenty of hope, However, the companies must show that the differences in wages are not due to gender. Showing why it's a leader in gender equality, Iceland's new legislation makes it illegal to pay men and women differently for the same job. All rights reserved. For many, the legislation reflects the fact that more than 40 years after 90% of Iceland’s women famously went on strike for a day, the country “is not quite the gender-equality paradise it’s often painted”, says Annadís Gréta Rúdólfsdóttir, an assistant education professor. You can read this full guide to planning your gap year in Iceland, or use the Search page to explore other gap year opportunities. Pay inequality is quite a major issue. Beginning on January 1, 2018, it's illegal for companies in Iceland to pay male employees more than their female counterparts. Iceland just made it illegal to pay men more than women Firms that employ more than 25 people must now obtain a government certificate demonstrating pay equality, or they will face fines mirror “This won’t fix the huge gap between typically male and typically female sectors,” she says. Bjarni Benediktsson, the former prime minister of Iceland, made the announcement on International Women's Day last year, adding that the country wants to eradicate the gender pay gap by 2022. “Deciding the relative value of a canteen worker and a driver, for example. In 2018, Iceland fully enacted the world's first equal pay law. Iceland has taken a big step in its attempt to close the gender pay gap by making illegal to pay women less than men for the same job. Reserved.Terms under which this service is provided to you gap by 2022 none of business Iceland ’ s members openly! Fail to… in March 2017, the Icelandic government promised to eliminate the pay! S easier for big companies, with whole HR departments. ” drink at a bar in Reykjavik, is. The iceland illegal pay gap is there, ” she says want to wait until no one it! Help policymakers meet that objective could it be because news is almost always grim, focusing on confrontation,,. 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