Gender injustice is a phenomenon of limiting thoughts and roles and differences in treatment that cause violations of human rights, especially equal rights between men and women (MaPPI FHUI, 2018). In everyday life, the most common gender injustice is discrimination that views a person based on certain attributes, such as gender. In the work environment, discrimination can be found, and this fits with the focus of this research, which examines salary differences between men and women in Iceland. The fact that there are differences in salaries and wages between men and women is referred to as the genderpay gap.
The gender pay gap, also known as the gender pay gap, refers to the difference in earnings that occurs between male and female workers in the same company. The concept is based on the median annual salary of all women working full-time compared to men’s salaries calculated in the same way. If a female worker receives a lower salary than a male worker with the same job and working hours, this can be considered a gender pay gap. Historically, gender pay disparity has been debated since the early 19th century.
Christy (2021) said that an expert named Anker said that gender-based gaps or injustices are spread all over the world, both in developed countries and developing and underdeveloped countries, one of which is in Iceland, which is considered a “friendly” country for women in the world. In Iceland, the gender pay gap is wide, and women are affected not only in private companies but also in government. In other words, it is not only company employees who take part in demonstrations to demand changes in public policy regarding this gender pay gap. Moreover, in an interview, Katrin Jakobsdottir clearly stated that public policies that reduce the gender pay gap are essential for employees in both government and private companies in order to realize Iceland’s goal as a country that supports gender equality (Deutsche Welle, 2018).
Experts say that the gender pay gap in Iceland is complex and caused by many invisible factors, such as segregation, education, wage setting, transparency of the pay system, and differences in family responsibilities. The term “segregation” is used in the workforce to describe gender differences in the workplace. Culturally developed and inherent stereotypes about how a job fits a certain gender lead to segregation. According to Anker (1998), masculinity and femininity associated with the attitudes and behaviors of men and women lead to stereotypes about the types of jobs appropriate for men and women.
Furthermore, these stereotypes have led to the emergence of jobs that are considered masculine and appropriate for men, such as racing drivers, mining workers, machinists, etc., which are considered “men’s jobs” and have clear categories that can show the masculine side of men. In contrast, there are stereotypes about jobs suitable for women, such as nurses, secretaries, salon workers, and ballerinas. Icelandic women united in a protest on October 24, 2016 to show their unequal pay. On Monday, thousands of female workers left their workplaces at 14:38 local time. The 14:38 time was chosen for a reason; women in Iceland are paid on average 18% more than men, which is higher than the average European wage gap of 16.2%. This results in women leaving work 18% earlier than the normal 8-hour workday. This wage gap, according to women’s organizations and trade unions, means that women continue to work without compensation (Hutt, 2017).
The demonstrations made the government and the general public realize that expecting the elimination of the gender pay gap simply by making laws that are not implemented and not properly monitored is futile. All countries, except Iceland, have laws that require employers to pay employees the same wage for men and women. However, these policies lack a specific approach to ensuring equal pay. In addition, to report any case of wage discrimination, women have to put in years of effort to get the case to court, especially to reach the point of compensation. The first step taken to remedy the gender pay gap was the passing of the Equal Pay Certification Act by the Icelandic parliament in mid-2017. Equal Pay Certification is a key policy issued by the Icelandic government in 2017 to address the gender pay gap. Companies or institutions use the equal pay symbol to show that they have followed procedures that can ensure that their decisions about employee pay are not based on gender discrimination.
In a further step towards improving gender equality in the workplace, the Icelandic government adopted the Equal Status and Rights Regardless of Gender Act in 2021. The aim of this law is to prevent discrimination based on gender and maintain gender equality and equal opportunities for all genders in all walks of life. The law states that everyone should have equal opportunities to benefit from their own efforts and develop their skills regardless of their gender.
In 2021, Iceland reported that the gender pay gap was only 4.3%, with a score of 0.860. This improvement in equal pay in such a short period of time suggests that the implementation of equal pay certification policies in Iceland may be able to end the gender pay gap. The world is watching Iceland’s efforts to address gender pay disparities and improve gender equality in the workplace. The UN awarded Iceland the gold certification award for gender equality in April 2022. The award was presented directly to the Minister of Foreign Affairs of Iceland by the United Nations Gender Equality Development Program (UNDP). The award was given in recognition of the Icelandic government’s efforts to improve gender equality around the world. Iceland has become a world leader in equal pay, setting an example for other countries looking to reduce gender pay differences. The country not only talks about equality rhetorically, but also implements policies that integrate this principle into its economic and social systems. In 2018, a law requiring companies and institutions with more than 25 employees to prove that they pay employees equal wages regardless of gender was one of the most revolutionary steps.
The law includes a different equal pay certification system. Companies must obtain certification from an independent authority that guarantees fair pay policies. This step forward has produced very favorable results. For more than ten years, Iceland has ranked first in terms of gender equality, according to the Global Gender Gap report published by the World Economic Forum. This shows that bold and sustainable policies can reduce gender inequality, especially in the economic sphere. Iceland’s success shows that equal pay is not just an ideal, but a goal that can be achieved with effective policies and transparent implementation. This method has helped Iceland shift its perspective on equality from discussion to concrete action with strong legal consequences. Challenges remain. While this policy has reduced pay disparities, criticism continues to emerge, especially from small businesses who feel the costly and complicated certification process burdens them. In addition, there are doubts about how effective these policies are at addressing deeper issues, such as gender stereotypes and the domestic roles still assigned to women. Therefore, to achieve full wage equality, Iceland must continue to push for broader cultural change.
Other countries can learn important lessons from Iceland’s example. The pay gap between men and women is often greater than that of men in many countries. Iceland’s methods, which combine strict regulations, transparency and a clear monitoring system, can serve as a useful example for other countries, especially in areas where gender equality remains a challenging issue. It is important to remember that these policies do not rely solely on regulation; they also require commitment from various parties, including government, the private sector, and civil society, to achieve. Iceland has shown that equal pay can be achieved if all parts of society work together for change. Wage equality in Iceland is proof that a fairer and more inclusive world of work is not a utopia. Other countries have a great opportunity to replicate and change the steps taken by Iceland to create a more equal and sustainable work environment, making gender equality the norm rather than the exception.
