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Iceland Flag Iceland Equal Pay Certification Guide

Last reviewed: May 2026

Companies and institutions in Iceland with 25 or more workers on an annual basis must obtain Equal Pay Certification or, for employers with 25-49 workers, may choose Equal Pay Confirmation instead.

Preparing Data for Equal Pay Certification in Iceland​

Iceland's framework is built around mandatory equal pay systems, not only retrospective pay gap reporting. Employers must show that pay decisions are based on relevant, objective considerations and that women and men receive equal wages and equal terms for the same jobs or jobs of equal value.

For official guidance, see the Government of Iceland: Equal Pay Certification.

Who Needs Equal Pay Certification or Confirmation​

  • Employers with 25 or more workers on an annual basis are covered
  • Employers with 50 or more workers generally obtain Equal Pay Certification under the ÍST 85 Equal Wage Management System standard
  • Employers with 25-49 workers may choose Equal Pay Certification or Equal Pay Confirmation through documentation submitted under the Directorate of Equality's requirements

What the Certification Covers​

Equal Pay Certification confirms that the employer's equal pay system and implementation meet the ÍST 85 standard. Employers must be able to show:

  1. Documented pay criteria based on relevant considerations
  2. Job evaluation for same jobs and jobs of equal value
  3. A management system that prevents direct and indirect gender-based pay discrimination
  4. Consistent salary decision processes
  5. Ongoing monitoring and corrective action

Certification and Renewal​

Accredited certification bodies review whether the equal pay system and implementation meet ÍST 85. Equal pay certificates are generally maintained on a renewal cycle, and employers should plan for ongoing review rather than treating certification as a one-time filing.

Employers with 25-49 workers that choose Equal Pay Confirmation should prepare documentation showing that their equal pay system and implementation comply with Directorate of Equality requirements.

Gender Equality Plans​

Companies and institutions with 25 or more employees must also set a gender equality plan or mainstream gender equality perspectives into their personnel policy. These plans should include objectives and implementation measures to protect employee rights under Icelandic equality legislation.

Penalties for Non-Compliance​

The Directorate of Equality can impose per diem fines if an employer does not provide requested data, does not follow instructions, or fails to obtain or maintain required equal pay certification or confirmation. Government guidance notes that per diem fines can be up to ISK 50,000 per day until the obligation is fulfilled.

Relationship to EU Pay Transparency​

Iceland is in the EEA, not the EU. The EU Pay Transparency Directive is not the same as Iceland's certification regime. Employers operating in both Iceland and EU member states should keep the Icelandic equal pay system aligned with EU-style data categories for equal work and work of equal value.

Frequently Asked Questions (FAQ)​

Which Icelandic employers are covered?​

Companies and institutions employing 25 or more workers on an annual basis.

What is the difference between Equal Pay Certification and Equal Pay Confirmation?​

Certification is based on the ÍST 85 Equal Wage Management System standard and reviewed by accredited certification bodies. Employers with 25-49 workers may instead choose confirmation by submitting documentation under Directorate of Equality requirements.

Is this just a gender pay gap report?​

No. Iceland requires an equal pay management system that governs how pay decisions are made and verified.

What happens if an employer does not comply?​

The Directorate of Equality may impose daily fines until the employer fulfills the obligation.

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