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.
Iceland Gender Pay Gap Reporting: What You Need to Know
LAST MODIFIED: January 10, 2025
At a glance
Who:
Organisations with over 25 employees
What:
Equal Pay Certification
When:
Rolling three-year renewal cycle
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2025 gender pay gap reporting requirements in Iceland
When is Iceland’s gender pay gap report due?
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.
Who needs equal pay certification in Iceland?
All employers with at least 25 employees must obtain an equal pay certificate.
What pay gap metrics do I need to report in Iceland?
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.
Where do I need to share the pay gap report in Iceland?
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.
Request a demo of Syndio's Global Pay Reports software.
Employers in Iceland and the EU Pay Transparency Directive
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 demands grow with the EU Pay Transparency Directive. Learn more ->
How Syndio helps with global pay equity, pay reporting, and pay transparency
Syndio provides the technology and expert partnership you need to comply with the growing pay equity, pay reporting, and pay transparency demands around the globe.
- Report your pay data and pay gaps — with Syndio’s Global Pay Reports. Our software supports fast, easy, and accurate compliance with pay reporting in 48 jurisdictions across 43 countries, including Iceland and for the EU Pay Transparency Directive. Syndio also supports the EU’s CSRD reporting.
- Identify, explain, and fix pay gaps — with Syndio’s PayEQ and OppEQ. Our suite of solutions give you the tools and legally compliant methodologies to analyze, explain, and make progress to close pay and career advancement gaps.
- Keep your pay gaps closed — with Syndio’s Pay Finder. On-demand pay recommendations help managers and recruiters make equitable, explainable pay decisions that don’t exacerbate pay gaps.
- Create a customized action plan — with Syndio’s EU Readiness Strategy Package. Syndio’s team of experts help you build a custom strategy and support project management. This includes a change management strategy session for senior leaders, communications strategy session on pay gap and Right to Information, and ongoing support on best practices and trends.
- Craft tailored communications strategies — with Syndio’s Communications Package. Leverage best practices to build a communications plan that builds your brand while aligning to your values and objectives.
Syndio takes data privacy and security seriously. Syndio is GDPR compliant, SOC 2 Type II and ISO 27001 2022 certified, and has completed the Cloud Security Alliance CAIQv.4.02 security self-assessment for STAR Level One. Learn more in our Trust Center under “Security Reports.”
FAQ: The most asked questions about Iceland’s gender pay gap reporting
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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