New Legislation on Gender Pay Gap Reporting

On 1 September 2026, new legislation on gender pay gap reporting entered into force. At the same time, the Directorate of Equality launched a new service and data management system to administer submissions, communications, and information related to the reporting requirements.

Under the new legislation, Equal Pay Certification and Equal Pay Confirmation are discontinued. In their place, new requirements for regular reporting are introduced for companies and public institutions employing an average of 50 or more employees annually.

“The objective of these changes is to increase transparency, support systematic pay analysis, and strengthen equality in the labour market. The new reporting portal makes it easier for employers to meet their legal obligations while ensuring more efficient information sharing and follow-up,” says Martha Lilja Olsen, Director of the Directorate of Equality.

A New Approach

Under the legislation, employers are required every three years to submit data demonstrating that their pay systems ensure equal pay for the same work or work of equal value, and that pay decisions are based on gender-neutral criteria. The reporting process includes, among other things, job classification, pay analysis, and a plan for corrective actions where necessary.

Employers are also required to present the results of their pay analysis to employees, while taking data protection and privacy considerations into account.

New Service and Data Management System

The new system is accessible through the Directorate of Equality's website and via Ísland.is. Through the system, employers can:

• Submit the required reporting data

• Monitor the status of their submissions and cases

• Access guidance and educational materials

• Obtain information on reporting deadlines and legal requirements

In the coming weeks, the Directorate of Equality will offer training and support to assist with the implementation of the new system. Further information on the legislative changes and reporting procedures can be found on the Directorate's website.

Employers whose Equal Pay Certification has already expired, or whose certification will expire in the coming months, are encouraged to familiarise themselves with the new system and begin preparing for their first reporting submission.

Key Points

• The legislation entered into force on 1 September 2026.

• It applies to companies and public institutions with an average of 50 or more employees annually.

• Equal Pay Certification and Equal Pay Confirmation are abolished under the legislation.

• The Directorate of Equality is responsible for administering and monitoring the reporting process.