We welcome 2018 with a good news on gender equality from Iceland! One of the champion countries in gender parity, Iceland once again reaffirmed its reputation by having a new legislation aiming to eliminate pay gap between women and men. The new law that came into effect on Monday, the first day of 2018, makes it illegal for any institutions, companies that pay men more than women for the same position.
Under the new law, it is obligatory for companies and government agencies with more than 25 employees to obtain government certification for the equal-pay policies. Any company that fails to do so would face a fine.
Around the world women have been known for being paid less than their male counterparts. The pay gap persists and even aggravated in some countries. According to the World Economic Forum, the average pay for women globally is $12,000 compared with $21,000 for men and this wage difference can take up to 217 years to be eliminated.
Iceland has been ranked the best in the world for gender equality by the World Economic Forum for nine years in a row. And this new rule has again set Iceland a role model for other countries to follow suit and improve gender equality. Closing the gender gap is not only respecting basic human rights but also stimulating more economic growth, hence a priority for all governments.