LAST MODIFIED: April 18, 2025
In Iceland, the Act on Equal Status and Equal Rights Irrespective of Gender mandates that employers with 25+ employees acquire an equal pay certification by having a third party review their “equal pay system.” Certificates must be renewed every three years.
Organisations with over 25 employees
Equal Pay Certification
Rolling three-year renewal cycle
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Iceland’s equal pay certification must be renewed every three years.
Every organisation with more than 25 employees must attain equal pay certification or confirmation, and must renew every three years as of the date of the last certification. The initial deadlines for completion of the certification process varied depending on the number of employees, but at this point all employers with more than 25 employees must maintain equal pay certification.
All employers with at least 25 employees must obtain an equal pay certificate.
Under Iceland’s law, employers with 50+ employees must seek certification by an accredited certifying organisation. That third-party certification body will review an employer’s equal pay system based on criteria used to make pay decisions, as well as the outcomes of those decisions to ensure that there is no gender discrimination in pay.
Companies employing an average of 25-49 employees can choose to submit their documentation directly to the Directorate of Equality for an Equal Pay Confirmation or can seek certification with a third-party auditor.
Companies employing an average of 25-49 employees can choose to submit their documentation directly to the Directorate of Equality for an Equal Pay Confirmation, rather than completing certification with a third-party certification body.
Employers with more than 50 employees on average must complete an Equal Pay Certification with a third-party certification body (auditor). The third-party certification body (auditor) organisation reports the Equal Pay Certificate and the results of the audit to the government’s Directorate of Equality / Centre for Gender Equality. The certification body must also inform the Directorate of Equality if the audit does not result in Equal Pay Certification and state the reasons for this by submitting a report on the outcome of the audit.
Syndio’s Global Pay Reports help you centralize and automate reporting for 48 jurisdictions across 43 countries, including Iceland. Our software makes reporting easy, fast, and accurate so you can report with confidence, even as requirements change. And our services team can answer all your detailed questions — we’re experts so you don’t have to be.
Iceland’s pay gap laws will not be directly impacted by the EU Pay Transparency Directive. Only the 27 Member States of the European Union are required to adopt the Directive.
That said, the EU Pay Transparency Directive will impact employers headquartered in Iceland if they have employees in any EU Member State. Many of the Directive’s pay equity and pay transparency obligations will apply to Icelandic employers with employees in the EU. Some obligations, like pay gap reporting, will apply to employers with more employees in the EU.
Also be aware that there’s a growing trend of countries learning from and adopting elements of pay gap reporting laws from around the world so the EU Pay Transparency Directive may be a roadmap for future developments in Iceland, especially as Iceland is a member of the European Economic Area, which means there are very close ties to Europe for many Icelandic companies.
Syndio has you covered as pay equity, pay reporting, and pay transparency requirements grow with the EU Pay Transparency Directive. Learn more ->
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Syndio helps customers all over the world with their global pay reporting needs. Here are some common questions we get about the reporting requirements under Iceland’s pay gap law.
The information provided on this resource does not and is not intended to be legal advice. All information, content, and materials are provided for general informational purposes only. The links to third-party or government websites are offered for the convenience of the reader; Syndio is not responsible for the contents on linked pages.
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