Iceland Proposes Law to Mandate Equal Pay for All by 2020

Today is international women’s day, and one of the biggest topics of debate is equal pay for equal work. Well, Iceland is about to take steps to make sure that becomes less of a concern in the small European country. Today, the Icelandic government announced that it will introduce a law that will require all companies with 25 employees or more be able to prove that they practice pay equality.

Iceland is hoping that this measure will eliminate the pay gap in the country by 2022. And it’s not just about the gender pay gap. The law mandates that public and private companies pay employees equally “regardless of gender, ethnicity, sexuality, or nationality.”

Icelandic Equality and Social Affairs Minister Thorsteinn Viglundsson says that it’s time that the country do something “radical” about the issue. He stated: “Equal rights are human rights. We need to make sure that men and women enjoy equal opportunity in the workplace. It is our responsibility to take every measure to achieve that.”

The proposed law has received some criticism–mostly concerns that it will become burdensome for companies and slow down the pace of business, as it requires that any company with over 25 employees obtain a certificate from the government.

There are a lot of arguments about how large the gender pay gap actually is in individual countries. Iceland is often cited as one of the best nations for equality, but according to a study from Expert Market, a UK-based data firm, Icelandic women earn 14 percent less than their male counterparts. In October 2016, Icelandic women protested the pay gap by walking out of work.

Way to go women of Iceland! Yesterday they protested 14% pay gap by leaving 14% early from work at 2:38pm! https://t.co/fGE9zByatE pic.twitter.com/fx1xjuJznI

— Women Thrive (@WomenThrive) October 26, 2016

Certain nations have policies that involve equal pay certificates. And in Minnesota, “certain contractors must provide equal pay certificates in order to conduct business with the State of Minnesota or certain governmental agencies.” But Iceland is believed to be the first nation to try to implement a law that mandates proof of equal pay.

Iceland is a very small country, so if this measure succeeds it may not be too useful of a model for other nations. But it’s nice to see a country making an effort to advocate for equal pay. After all, we still live in a world where op-eds are published about how women shouldn’t be paid equally. So, carry on, Iceland, and happy International Women’s Day!

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.