Advania reacts to Icelandic Equal Pay Standard Laws
Iceland has a long standing record as one of the world‘s most egalitarian countries and is referenced as a „stand out“ economy on the World Economic Forum‘s Inclusive Development Index. Iceland was the first country in the world to democratically elect a woman as president and the current PM is the second woman to hold that position.
Despite an admirable equal rights record, official surveys suggest that women still are held back in the workplace and currently an unexplained wage gap of 7-18% can be observed both in the private sector and in public service.
Responding to this, the Icelandic Parliament has passed legislation aimed at eliminating this wage difference. The legislation is thought of as unique and has received global attention. The laws require workplaces employing more than 25 people to fulfil an Equal Pay Standard. The Icelandic government has established a standard (ÍST 85) specifying what workplaces need to do in order to be certified. Following this, all salaries should be determined according to standardised procedures.
Industry specific auditors perform the necessary accreditation needed to receive the Equal Pay Certificate. The largest workplaces must complete the process in 2018, but smaller workplaces are extended a longer grace period to adjust to a new legal environment. Workplaces that do not comply with the law risk hefty fines.
Advania in Iceland has developed a solution for companies to help them eradicate gender based wage difference and easily comply with the new Icelandic Equal Pay Standard Legislation. The solution is called easyEQUALPAY and consists of consultation and software that surveys and monitors salaries within the workplace. The solution is an addition to the H3 Human Resource system that is already used by numerous Icelandic companies. The system manages hiring procedures and salaries and now also offers an easy way to provide the information required for the Equal Pay accreditation. The solution offers an easy and reliable way for companies to discover gender based discrepancies when it comes to salary decisions and provides an opportunity to correct these discrepancies.
Advania is proud to provide a solution that supports important legislation aimed at increasing equality in the workplace.
Image text: The Icelandic Parliament voted in favour of legislation that aims to eradicate gender based wage difference. Pictured is Katrín Jakobsdóttir, Icelandic PM with the Government of Iceland.