Equal Pay Policy
Purpose and objectives
The Central Bank’s policy is that all employees shall be receive equal pay 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. This policy applies to all Central Bank of Iceland employees, and it provides for objectives and measures aimed at ensuring that the Bank’s employees have the rights stipulated in the Act on Equal Status and Equal Rights Irrespective of Gender, no. 150/2020 and the Act on the Administration of Matters Concerning Equality no. 151/2020.
Central Bank employees’ salaries shall be in compliance with the law and wage agreements, and salary decisions shall be based on the nature, responsibility, and scope of the work carried out by each employee, as well as taking account of the employee’s knowledge, skills, and experience.
The Bank’s objective is to be a desirable workplace where women, men and nonbinary have equal opportunities in their work.
The Central Bank stresses the following:
- Offering its employees competitive pay and terms of employment.
- Ensuring that decisions on remuneration and changes in pay comply with the requirements of the Icelandic equal pay standard.
- Ensuring that all decisions on salaries and other terms of employment are based on objective criteria and are consistent with the fundamental principle that women and men shall be receive the same pay for the same or comparable work.
- Undertaking continuous improvement, monitoring the execution of decisions on remuneration, and reviewing equal pay objectives so as to ensure consistency with the equal pay standard.
In order to achieve its objectives, the Bank operates according to a documented, certified equal pay system based on the ÍST 85 equal pay standard. In order to ensure continuous improvement of the equal pay system and to enhance the reliability of decisions on remuneration, the Bank shall:
- present the equal pay policy, equal pay objectives, and results of pay analyses to employees;
- engaged an impartial entity to conduct an external appraisal of the equal pay system;
- conduct an annual internal appraisal of the pay system and conduct a management review;
- engage an impartial entity to conduct an annual pay analysis;
- prepare a plan for improvements on the basis of appraisals, with the aim of eliminating any gender-based pay gap that may exist;
- comply with the regulatory provisions and wage agreements in force at any given time and confirm the Bank’s compliance with the law;
- make the equal pay policy available on the Bank’s intranet and website.
The Director of Human Resources is responsible for implementing and executing the policy, as well as ensuring that it is maintained and reviewed on a regular basis.