Around 120 companies could face daily fines in January if they do not obtain equal pay certification. The certification, meant to combat the gender wage gap, requires businesses to prove they are paying men and women equally for comparable work. RÚV reports that out of 142 companies with 250 employees or more, only 16, or 11%, have received equal pay certification.
While smaller businesses have up to four years to become certified, companies of 250 employees were given one year to complete the process. Those who do not obtain the certification by the January deadline could face daily fines of up to ISK 50,000 ($470/€400).
“We have of course emphasised trying to encourage most companies to finish this before the end of the year,” says Ásmundur Einar Daðason, Minister of Social Affairs and Equality. He adds that the government has increased funding to the project in order to encourage companies to complete the process.
Only three companies in Iceland currently issue the certification, raising concerns that it will be impossible to complete it by the end of the year.