Equal Pay Certification

The purpose of the obligatory equal pay certification is to enforce the current legislation prohibiting discriminatory practices based on gender and requiring that women and men shall be paid equal wages and enjoy equal terms of employment for the same jobs or jobs of equal value. Companies and institutions employing 25 or more workers, on annual basis, will be required to obtain equal pay certification of their equal pay system and the implementation thereof. In accordance to the legislation, certification shall meet the requirements of the Standard ÍST 85, Equal Wage Management System – Requirements and guidance (normally called The Equal Pay Standard). Equal pay certification under the Standard ÍST 85 is designed to confirm that when decisions on wage are taken they are based only on relevant consideration.

The Standard ÍST 85 is a management requirement standard and can be used by all companies and institutions regardless of the size of the workplace, operation, role or gender balance amongst staff. The Standard ÍST 85 ensures professional working methods in order to prevent direct or indirect discrimination. The Standard ÍST 85 can be purchased at Icelandic Standards (Staðlaráð Íslands).

Accredited certification bodies shall confirm that a company’s or institution’s equal pay system and its implementation thereof meet the requirements of the Standard ÍST 85.

In spite of the obligation for equal pay certificaton a company which employs an average of 25– 49 employees can choose to either undergo an equal pay certification or to receive an equal pay confirmation following the submission of documentation showing that its equal pay system and its implementation comply with the requirements of the Directorate of Equality for the confirmation.

The Equal Pay Policy includes all the ministries of the Government Offices of Iceland and provides for goals and measures to ensure that employees of the Government Offices enjoy the rights to equal pay enacted in Act no 150/2020 on Equal Status and Equal Rights Irrespective of Gender.

The ministries disburse wages according to the scale and nature of the work and take into account the necessary requirements to carry out the work, irrespective of gender.  Wages must be determined in accordance with collective bargaining agreements and institutional contracts, justified with reasoned arguments and ensuring that equal pay is paid for work of equal value.

In order to comply with the Equal Pay Policy of the Government Offices all the ministries undertake to:

• Introduce, document and maintain an equal pay management system in compliance with standard ÍST 85:2012 and obtain equal pay certification in accordance with Act No. 150/2020 on Equal Status and Equal Rights Irrespective of Gender.
• Analyse wage disbursements and introduce yearly the results together with the Equal Pay Policy to the employees.
• Respond to non-compliance with the requirements of the standard, including unexplained gender pay gap, with constant amendments and supervision.
• Carry out on a yearly basis a screening of directors where equal pay objectives are put forth and reviewed.
• Comply with laws, rules and collective bargaining agreements in force at the time in question, and confirm yearly that they are being complied with.
• Ensure the accessibility of the Equal Pay Policy on the external web of the Government Offices.

Adopted at the Permanent Secretary meeting on 23 October 2020