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. The gap between men’s and women’s pay is a global problem. Now Iceland has become the first country in the world to enforce equal pay, First published on Tue 20 Feb 2018 01.00 EST. And the public shame, it is hoped, will be worse. “Between engineering, for example, and nursing or teaching. 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. 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”. People have a drink at a bar in Reykjavik, Iceland, where equal pay is now being legally enforced. “You need to put resources into it. Iceland just made it illegal to pay women less than men for the same work, becoming the first country to do so, HuffPost reports. To achieve this lofty goal, the island introduced a new measure to help policymakers meet that objective.. 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. 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 - 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. 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. Pay inequality is quite a major issue. Mainly, I’m just so proud we actually made it happen.”. It could equally be used to eliminate discrimination by race or disability.”, Legislation, she is convinced, “can impact attitudes and behaviour. “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. We still live in a very gendered reality in Iceland. Vigdís Finnbogadóttir, pictured in 1980, was the world’s first directly elected female president. None of Business Iceland’s members have openly criticised the new law, Sigurðsson says. 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. We’ve seen that time and again. For the latest business news and markets data, please visit CNN series is an antidote, an attempt to show that there is plenty of hope, All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 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. How long will it take to close the gender pay gap? The fine for those that do not comply is ISK50,000 (£350) a day. If you’re having trouble using the form, click here. 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 https://money.cnn.com/2018/01/03/news/iceland-gender-pay-gap-illegal Equal pay in Iceland 01:04. This article is part of a series on possible solutions to some of the world’s most stubborn problems. At the beginning of 2018, Iceland made it illegal to pay men more than women – and now they’re enforcing it. We have our fair share of toxic masculinity. The UK reported an average 16.9% pay gap between men and women in 2017. Closing over 85 percent of its overall gender gap, Iceland made it illegal for women to be paid less than men in January 2018. “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. One country — and yes, sadly only one, and the first one to do so — has recently made gender-based pay discrimination illegal. A new female Prime Minister, and a Parliament where nearly half of its members are women. Employers will face fines if they are found to be in violation. ‘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 … “But it is the best toolbox I have seen, and it will make a big difference. In March 2017, the Icelandic government promised to eliminate the gender pay gap by 2022. 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. At Go Overseas, we strive to provide the most comprehensive program and gap year listings available. Iceland’s commitment to closing its gender pay gap by 2022 comes as other countries across the world are stalling on economic gender parity. 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. 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”. In a world first, Iceland has made it illegal to pay men more than women. n the face of it, Iceland is a good place to be a woman. “Deciding the relative value of a canteen worker and a driver, for example. In 2008, it was 2.25pm. In Iceland it is now Illegal to Pay Women less. “The information is there, and the education is there,” she says. Employers in the Nordic country now have to prove that they pay men and women in the same jobs equally. Beginning on January 1, 2018, it's illegal for companies in Iceland to pay male employees more than their female counterparts. 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. 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 new law has resonated with activists around the world. Some in Iceland still do oppose it, albeit cautiously. 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. might and innovations whose time might have come. 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. Cable News Network. When Icelanders found out it would be another 122 years before they closed the gender pay gap at the current rate, that was unacceptable. 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. “That WEF index is fairly crude. under which this service is provided to you. Iceland has been at the forefront of fighting gender inequality for years. Despite its image as a paradise of fairness, women earn less than men. Iceland has the best track record on gender equality in the world, according to the World Economic Forum. For nearly a decade, it has been rated. ", 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.". 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%. In 2018, Iceland fully enacted the world's first equal pay law. A new law enforcing equal pay between genders came into effect on January 1, 2018, according to Al Jazeera. celand has made it illegal to pay men more than women. Morningstar: © 2018 But it’s possible, and we can do it. It doesn’t reflect the pay gap, or gender-based violence. 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. In eleven years, less than three minutes has been gained anually towards eliminating the gender pay gap, English-language Icelandic news site Grapevine reported. The possible fines are set at around $500 per day in the current legislation. “This will not eliminate the gender pay gap overnight,” says Maríanna Traustadóttir, an equality adviser at the Icelandic trade union confederation ASI. To be effective, pay equity laws need to be combined with strong protections for union organizing and collective bargaining. Equal representation benefits everyone! Hopefully, more countries follow in Iceland’s footsteps and make it illegal to pay men more than women too. You can read this full guide to planning your gap year in Iceland, or use the Search page to explore other gap year opportunities. At this time, we are only able to find a few gap year opportunities in Iceland, listed below. “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 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. Do Not Sell. The legislation came into force on Monday, the first day of 2018. We would have preferred the process to be bottom-up.”, Others, however, are delighted. As it stands, the legislation is staggered over four years. Readers can recommend other projects, people and progress that we 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. 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. 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. 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. 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 … ... 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'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. ", Yoo Hoo!! Although Iceland first passed legislation on equal pay as early as 1961, the gender pay gap persisted. It doesn’t make any sense why two people doing the same job would get paid different wages. All Rights Reserved.Terms Factset: FactSet Research Systems Inc. 2018. But there is confidence the legislation is a major step in the right direction. If politicians want to wait until no one opposes it, it will never happen.”. “The standard is simply designed to eliminate factors that are irrelevant by law – such as gender. Gender inequality is wrong. 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. 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. But I think it’s clear there is opposition to the method. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. 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. Even here, the patriarchal culture, a male sense of entitlement, is deep-rooted. But the country still had a persistent pay gap just over 16 percent as of last year. A WarnerMedia Company. In 2015, women earned 14-20% less than men, according to Statistics Iceland. “The legislation will take some time to bed in, of course,” Valdimarsdóttir says. 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. 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. 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. confrontation, disaster, antagonism and blame? The standard was published in 2012 and welcomed by Iceland’s trade unions and employers, who helped design it. 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 . This #MeToo was as shocking here as anywhere.”, Her colleague, Berglind Rós Magnúsdóttir, says a broader “re-engineering” of society is still needed. “Now we need the effort.”. The law came into effect on Monday and applies to all companies and organizations with at least 25 full-time employees. 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. Photo: Unsplash Despite all the recent strides toward equality, the gender pay gap is still a very real thing in America and beyond. If they fail to do so, they risk being fined. Anything to do with care or education is paid less.”. “It’s quite difficult to come out publicly against a measure that enhances gender equality. All rights reserved. It was, however, designed to be voluntary. 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. Disclaimer. However, the companies must show that the differences in wages are not due to gender. Business. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. Turns out, it might be good for business. Taking Iceland’s Gender Pay Gap Law Global. It will force employers to think differently.”, It will not be straightforward, she concedes. Research & Commentary February 09, 2018. by Ruwan Subasinghe. 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. For nearly a decade, it has been rated the world’s most gender-equal country. Ever wondered why you feel so gloomy about the world - even at a time when humanity has never been this healthy and prosperous? 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 … It is now illegal for men to be paid more than women in the small Nordic island country of Iceland. 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. Women are paid less than men in every country in the world, according to research by the World Economic Forum. 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. and/or its affiliates. Could it be because news is almost always grim, focusing on (The two terms, gender pay gap, and equal pay are not the same. ) It’s easier for big companies, with whole HR departments.”. Our experience is that you need legislative measures to move things forward. 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 … Starting January 1, Iceland will make it illegal to pay men more than women. as our journalists scour the planet looking for pioneers, trailblazers, best practice, unsung heroes, ideas that work, ideas that 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. 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. All times are ET. 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. Several companies already have.”. What else should we cover? Most stock quote data provided by BATS. 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. ‘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. 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. “This won’t fix the huge gap between typically male and typically female sectors,” she says. The government has committed to closing the gender pay gap by 2022. Companies that fail to… A new law making it illegal to pay men more than women has taken effect in Iceland. The law requires organizations with at least 25 full-time employees to receive government certification that they’ve demonstrated pay equality. All rights reserved. If they are not in compliance, they face a fine of about $500 a day. 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