Equal Pay Policy

Equal Pay Certificate 2019-2022The Central Bank of Iceland complies with the provisions of the Act on Equal Status and Equal Rights of Women and Men, no. 10/2008. The Central Bank’s policy is that all employees shall be paid equal wages and enjoy equal terms of employment and rights for the same jobs or jobs of equal value, so that there is no gender-based pay gap within the Bank. The Central Bank complies with all applicable laws, rules, and wage agreements that are in force at any given time.

The Bank stresses offering its employees competitive wages and terms of employment. Remuneration of Central Bank employees should reflect the requirements made of them as regards knowledge, competency, and responsibility in carrying out their work. The equal pay criteria in the system are education, professional experience, professional responsibility, knowledge, supervision of other employees, financial responsibility, and macroeconomic responsibility. Performance at work also has an impact, particularly to include communication skills, independence, and initiative.

In order to enforce its equal pay policy, the Central Bank pledges to document, implement, and maintain an equal pay system based on the Icelandic equal pay standard ÍST 85:2012. An equal pay system should ensure that wage decisions are based on substantive considerations and do not entail direct or indirect discrimination on the basis of gender or other factors. When an equal pay system is implemented, a specific set of procedures on wage decisions is put in place within the Bank so as to ensure equal rights, continuous improvements, and responses aimed at correcting a gender-based pay gap should one be revealed.
The Director of Human Resources reviews Central Bank employees’ wages twice a year, in cooperation with each department’s director. The purpose of such a review is to ensure harmonisation of wage payments with reference to the Bank’s equal pay policy. Reasoned recommendations are presented after such a review and documented.
Employees may request a wage review interview with their departmental director, as the Confederation of Icelandic Bank and Finance Employees (SSF) wage agreement entitles them to such an interview once a year. The departmental director and the Director of Human Resources determine jointly whether a review of a given employee’s wages is warranted.
In order to ensure follow-up and continuous improvements in the Bank’s equal pay system in accordance with the requirements of the ÍST 85:2012 standard, the Bank pledges to take the following actions:

• To present its equal pay target and equal pay policy and introduce it to the Bank’s employees.
• To solicit an external appraisal of the equal pay system and a wage analysis in order to determine whether there is a gender-based pay gap. If such a gap is revealed, it shall be corrected.
• To prepare an internal appraisal of the equal pay system so as to ensure its quality.
• To publish the policy on the Bank’s internal and external websites.

The Director of Human Resources is responsible for documentation, implementation, and execution of the policy, as well as for ensuring that the policy is maintained and reviewed annually by the Governor and the departmental directors of the Bank. The Director of Human Resources shall also assist the Governor in ensuring compliance with equal pay requirements laid down in the law and in other regulatory instruments.