A new law making it illegal to pay men more than women has taken effect in Iceland. 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.
Iceland has long been hailed as a champion for women’s rights and gender pay equality. The World Economic Forum has ranked Iceland the top country in gender equality since 2009, pipping its Scandinavian neighbours.
The new gender pay bill requires companies—as well as government agencies—with 25 or more employees to get a certification that says the company pays equally between genders in the workplace. Each assessment is made by an independent and accredited reviewer. Should a company fall short, they face fines ranging up to 50,000 Iceland krona (€400) for each day they are not in compliance.
Iceland has a strong economy based on tourism and fisheries and government has committed to eradicate the gender pay gap by 2022.
