Direct Request (CEACR) - adopted 2024, published 113rd ILC session (2025)

Equal Remuneration Convention, 1951 (No. 100) - Iceland (Ratification: 1958)

Articles 1 and 2 of the Convention. Gender pay gap. Further to its previous comment, the Committee takes note that Act No. 150/2020 on Equal Status and Equal Rights Irrespective of Gender, which was issued on 5 January 2021, repealed Act No. 10/2008 on Equal Status and Equal Rights of Women and Men. The Committee notes that, in its report, the Government underlines that the objective of Act No. 150/2020 is “to prevent discrimination on the basis of gender and to maintain gender equality and equal opportunities for the genders in all spheres of society”. The Committee notes with interest that this objective shall be reached, inter alia, by “working against pay discrimination […] including by having companies and institutions fulfil the conditions of equal pay certification or equal pay confirmation” (article 1). In this respect, the Committee notes that under the Act, a company or institution with an average of 25 or more employees in principle per annum shall acquire equal pay certification following a certification body’s audit that confirms that the company’s or institution’s equal pay system and its implementation meet the requirements of the Equal Pay Standard ÍST 85:2012 (with companies or institutions with 25 to 49 employees having the possibility to opt, rather, for an equal pay confirmation from the Directorate of Equality upon submission of documentation showing that their equal pay systems do not promote gender-based pay discrimination). In this respect, the Committee notes with interest that in accordance with Act No. 151/2020 on the Administration of Matters Concerning Equality, the Directorate of Equality is responsible for, among other things, “working to eliminate pay inequality”, with a “special emphasis on eliminating gender-based pay inequality” in accordance with Act No. 150/2020. The Committee further notes that, in the ninth periodic report it submitted to the United Nations (UN) Committee on the Elimination of Discrimination against Women, the Government indicated that: (1) it was estimated that the total effect of the equal pay certification or confirmation would reach around 1,200 companies and institutions and 150,000 employees, or around 75 per cent of the workforce in Iceland; and (2) at the end of August 2021, a total of 312 companies and institutions had implemented the Equal Pay Standard and received equal pay certification, representing around 64 per cent of the employees that were originally estimated to be reached (CEDAW/C/ISL/9, 29 December 2021, paragraphs 86 and 190). The Committee notes that both equal pay certification and confirmation shall be renewed every three years. Furthermore, according to the Government, the Equal Pay Standard can contribute to increase awareness on gender-neutral wage settings but it does not address the issue of gender segregation in the labour market since it is not designed to tackle wage differences between companies and institutions. It is first and foremost an administrative tool designed to establish and maintain gender equality in pay systems within a company or an institution. The Government adds that statistics show that the gender pay gap has decreased between 2010 and 2019 despite the fact that the Equal Pay Standard was only partially implemented. Over this period the difference in total income decreased from 32.9 to 25.5 per cent; the unadjusted pay gap decreased from 17.5 to 13.9 per cent; and the adjusted pay gap decreased from 6.2 to 4.3 per cent. According to the Government, the main reason for the unadjusted pay gap is gender segregation in the labour market and possible undervaluation of women-dominated job sectors. In this respect, the Government indicates that a working group was appointed in collaboration with the social partners in order to address these issues. The Committee notes that this group was expected to submit, before the end of 2023, its proposals for measures to re-evaluate women-dominated functions and eliminate the gender pay gap. The Committee asks the Government: (i) to provide detailed information on the working group’s proposals aimed at eliminating the gender pay gap and the results obtained in this respect; (ii) to indicate the number of companies and institutions that received equal pay certification or confirmation (with the number and proportion of employees concerned); and (iii) to provide information on any measures taken or envisaged by the Directorate of Equality with a view to eliminating gender-based pay inequality.

Work of equal value and scope of comparison. In reply to the Committee’s previous comment, the Government indicates that under article 6 of Act No. 150/2020, which repealed Act No. 10/2008, the principle of equal pay is no longer limited to situations in which men and women work for the same employer, since this article provides that they “shall be paid equal pay and enjoy equal terms of employment for the same jobs or jobs of equal value”. The Committee takes note of this information, which addresses its previous request, with interest.

Article 3. Objective job evaluation. Further to its previous comment, the Committee takes note of the Government’s indication that the implementation of the Equal Pay Standard requires employers to use a gender-neutral job evaluation system. In this respect, the Committee takes note with interest that: (1) under article 8 of Act No. 150/2020, jobs are evaluated with regard to responsibilities, workload, competence and working conditions; and (2) the Government has provided a free-of-charge job classification tool for all employers both in the public and private sectors. The Committee requests the Government to provide information on: (i) the use of the job classification tool by employers in the public and private sectors; and (ii) any studies carried out or exercises undertaken to assess the impact of job evaluation in reducing the gender pay gap.

Enforcement. The Committee notes the Government’s indication that six cases relating to equal remuneration were referred to the Equality Complaints Committee between June 2019 and December 2022. In two cases, the Equality Complaints Committee ruled that either Act No. 10/2008 or Act No. 150/2020 had been violated and, in two other cases, it ruled that no violation had taken place. One case was dismissed and the last one was withdrawn by the complainant. The Committee asks the Government to continue to provide information on any decisions or rulings relating to the issue of gender-based pay inequality by the Equality Complaints Committee or the courts.