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 shall be 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 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 people of all genders have equal opportunities in their work.
Key priorities
• That remuneration criteria and terms of employment shall support the Bank’s role, objectives, and vision.
• That the Bank is a growing workplace where decisions on remuneration and terms of employment support the Bank’s strategic priorities at any given time.
• That the Bank is able to compete for the most competent specialised personnel in its field.
• That decisions on remuneration and changes in remuneration shall comply with the requirements of the Icelandic equal pay standard.
• That all decisions on salaries and other terms of employment are based on objective criteria and are consistent with the fundamental principle that all genders shall receive the same pay for the same or comparable work.
Execution
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.
Engage an impartial entity to conduct an external appraisal of the equal pay system.
Conduct an annual internal appraisal of the pay system and carry out a management review.
Carry out a remuneration analysis at least once a year, or more often if deemed necessary.
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 external 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.