Equal Pay Policy

The Central Bank of Iceland has received formal equal pay certification in recognition of its wage structure, which fulfils the requirements of the equal pay certification standard ÍST 85:2012. The formal assessment of the Bank’s equal pay system was concluded in December 2018. The assessment was carried out by BSI Iceland, an accredited representative of the British Standards Institution. Two assessments were carried out in order to determine whether all of the requirements of the ÍST 85:2012 standard were satisfied in the Bank’s equal pay system. The Bank passed both assessments without reservations and has now received formal equal pay certification. The Bank stresses offering its employees competitive wages and terms of employment. Central Bank employees’ wages should reflect the demands made of them as regards knowledge, qualifications, and responsibility in carrying out their work. Factors such as education, professional experience, specialised knowledge, supervision of others, and responsibility affect employees’ wages. Work performance also has an impact, with particular emphasis on professional work habits, communication skills, management capabilities, and the ability to adopt new work habits and knowledge.
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. 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 proposals are presented after such a review and sent to the Governor for final approval.
Employees may request a wage review interview with their departmental director, as they are entitled to such an interview once a year, according to the Federation of Bank Employees (SSF) wage agreement. If the director considers a review of a given employee’s wages warranted, the director contacts the Director of Human Resources, and they review the situation together.
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 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 so as to determine whether there is a gender-based pay gap. If such a pay 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 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.