Iceland makes equal pay for men and women mandatory

New Delhi : Iceland has become world's first country to legalise equal pay for both men and women by all private and government organisations.

The law, which was passed with a majority in June last years, comes to effect from January 1, 2018. It seeks to erase a current pay gap between men and women of about 5.7%.

In countries like the United States, there is a provision of providing equal pay certificate, but Iceland has become first country to make it mandatory for all.

The North Atlantic island nation, which has a population of about 3,30,000, wants to eradicate the gender pay gap by 2022. The country has a female prime minister, Katrin Jakobsdottir, and ranks first on the World Economic Forum's global gender equality index.

A company with over 25 employees working for it will have to mandatory obtain an "equal pay certification" from an accredited auditor showing that they are basing pay differences on legitimate factors such as education, skills and performance.

The certification will be bound for renewal in every three years.