iceland equal pay law effects

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 went into effect on Jan. 1. And its new law requires companies with 25 or more employees to obtain certification to confirm that equal pay is a reality for all employees, regardless of gender. Legal Statement. The new law, which came into force on New Year's Day, … Although Iceland first passed legislation on equal pay as early as 1961, the gender pay gap persisted. Iceland to enshrine equal pay for women and men in law This article is more than 3 years old. “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. With the new law in effect, the Icelandic government hopes to close the gap entirely by 2022. Even though the law doesn’t tackle this problem directly, it will help companies and institutions focus on gender and change their approaches. 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. This website uses cookies to improve your experience. 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. 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. / CBS News. It’s not a transparent document,” Halldóra continues. 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. Disparity often is a result of negotiation ability and lack of transparency. Iceland's parliament, which is about 50 percent female, announced the legislation in March 2017, on International Women's day. West Reykjavík Considers Rapper Statue, Your essential guide to life, travel and entertainment in Iceland. The law enforcing equal pay between genders came into effect on January 1, 2018, according to Al Jazeera.. Caitlin O'Kane is a digital content producer covering trending stories for CBS News and its good news brand, The Uplift. After the standard was completed in 2012, the first pilot project began a year later. It’s not a transparent document,” Halldóra continues. The gap between men’s and women’s pay is a global problem. In this case, women are still paid less than men, because most of them are office workers at the Directorate of Customs. The law would take effect from January. Treasury to move forward with effort, Biden orders government to buy from U.S. manufacturers, Biden revokes Trump's transgender military ban, one in gender equality by the World Economic Forum, women earn about 79 cents for every dollar men earn, California Privacy/Information We Collect. In the United States, women earn about 79 cents for every dollar men earn. You’re not allowed to copy it or post it anywhere. 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. All companies and government agencies with more than 25 employees must now obtain an official certification to show that they give equal pay for work of equal value. The bill was initially introduced by Þorsteinn Víglundsson, who served as the Minister of Social Affairs and Equality in 2017. 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. Despite an equal pay act that dates back to 1961, Icelandic women still earn, on average, between 14% and 20% less than men. The law came into effect on Monday and applies to all companies and organizations with at least 25 full-time employees. One of the main tasks Icelandic companies and institutions face is to define which jobs are of equal value. Until now women in Iceland have earned an average 19% less than their male colleagues. “We looked at the model of other international standards like environmental standards, management standards and quality standards,” Hannes explains. Employers in the Nordic country now have to prove that they pay men and women in the same jobs equally. Iceland has taken a big step in its attempt to close the gender pay gap by making illegal to pay A new law makes equal pay for … “. ”. “The Equal Pay Law will help companies and institutions eliminate whatever gender-based bias there may be in pay, and it also helps them identify indirect work selection, like why women are not taking on certain jobs rather than others,” he says. “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. Before Þorsteinn introduced the Equal Pay Standard to the parliament, it was a voluntary measure that primarily large companies used as part of their marketing strategy. Depending on the size, smaller companies have more time. … While it's not yet at total parity, Iceland has been ranked number one in gender equality by the World Economic Forum for the last nine years. The groundbreaking law, which took effect In 2018, fines companies that don’t offer offer equal pay for equal work. “That was an ongoing project between 2013 and 2016. “. “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. . 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. 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. 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. January 3, 2018 / 1:37 PM This company charges 10.000 ISK to look at the rules. That was the first time the Althing, the Iceland Parliament, banned pay discrimination in the … The bill was initially introduced by Þorsteinn Víglundsson, who served as the Minister of Social Affairs and Equality in 2017. Iceland has set a new standard for the world in gender equality at the workplace. First it was New Zealand.Now another small country has joined a global effort to try narrow the gap in pay between genders: Iceland. We'll assume you're ok with this, but you can opt-out if you wish. So, they have been looking at the possibility of changing the shift system to 8-hour shifts, or offer more flexible shifts to attract more women.”, Halldóra Mogensen is an MP from the Pirate Party and the chair of the Welfare Committee. The question now is how effective a measure like this will. “They identified that shifts were long—12-hour shifts for customs officials—and that is something that women, more so than men, do not like. First published on January 3, 2018 / 2:18 PM. 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. “That’s not a problem that can be solved with one policy, which is why no one’s doing it,” Halldóra finishes. Staðlaráð Íslands, an independent association that publishes Icelandic standards. 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. Although Iceland first passed legislation on equal pay as early as 1961, the gender pay gap persisted. She had a few concerns when the law was being discussed in the Parliament. “If you want to bring about change, sometimes you just have to force it,” he argues. The gender pay gap is an especially fraught issue in Iceland, where women have had much better luck winning equal footing in government than in the workplace. “Why is raising our children to become healthy, happy and informed individuals not the most important job in our society?” Halldóra questions. But those days are over. You’re not allowed to copy it or post it anywhere. Otherwise, they risk being fined. In 2015, women earned 14-20% less than men, according to. The law would take effect from January. Þorsteinn, however, has a different perspective. “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. If … And that was in development between 2008 and 2012.”, Hannes G. Sigurðsson, Deputy Director General at SA–Business Iceland, was one of the people who helped draft the Equal Pay Standard. The new Equal Pay Certification law took effect in Iceland at the beginning of this year. “It’s a step in the right direction, but the battle isn’t over,” she says. Businesses that employ more than 25 people are now required to obtain a government certificate demonstrating pay equality, or they will face fines. One of the main tasks Icelandic companies and institutions face is to define which jobs are of equal value. The new Equal Pay Certification law took effect in Iceland at the beginning of this year. Since the first edition of the Forum report in 2006, Iceland has closed around 10% of its total gender gap, making it one of the fastest-improving countries in the world. “The overall concept had been in preparation for a long time,” says Þorsteinn. “That was an ongoing project between 2013 and 2016.”. 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. © 2018 CBS Interactive Inc. All Rights Reserved. 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. “It started back in 2008 as a voluntary initiative initiated by the social partners. And NPR reported that the state of Minnesota now enforces equal pay law ... the legislation will go into effect in 2020, ... Keywords iceland equal pay wage gap wage inequality. 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. If the country reached full gender parity, the WEF estimated, it could add $1.7 trillion to the economy. 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. “We didn’t even know what rules companies have to follow when we were passing this law.”, The Equal Pay Standard is owned by Staðlaráð Íslands, an independent association that publishes Icelandic standards. Only a couple of months after a new Iceland Equal Pay Certification Law has taken effect, Iceland is already the subject of a debate about gender gap at international level. Iceland's biggest and most widely read tourist publication. Iceland this week took its equal pay law to a new level, as a law took effect requiring employers to prove they don’t discriminate against women in monetary compensation. From what I understand, the USA already has equal pay laws. 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. In order to obtain certification, companies and institutions need to implement an equal pay management system following guidelines in the Equal Pay Standard. Hannes from SA–Business Iceland thinks that the standard is an extra burden for companies and it should be kept voluntary. “It doesn’t happen entirely just on a voluntary basis.”. “This company charges 10.000 ISK to look at the rules. Iceland, long considered to be the global leader on gender equality in the workforce, recently took another step forward to close the gender wage gap. “It is a matter of justice, and a matter of basic human rights,” Þorsteinn says. Now one country has decided to end the gender pay gap once and for all. The law mandates employers to undergo equal pay certification using the Equal Pay Standard, an equal pay management system developed in Iceland. A small country like Iceland, with about 350,000 people and nearly all the same ethnic background, can do a lot of things the USA can’t, because of its diversity and bureaucracy. “They should have negotiated with the company and had this as a public document before putting through this law.”. “Companies and institutions were trying out the methodology of the standard, and how simple or complicated it would be to implement,” Þorsteinn comments. Copyright © 2003 - 2021 Fröken Ltd. All rights reserved. Gap persisted it is a digital content producer covering trending stories for CBS News its. She had a few concerns when the law doesn ’ t offer offer equal pay standard because... Just on a voluntary basis. ” already has equal pay as early as,!, announced the legislation in March 2017, on international women 's day Iceland first legislation. 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