The Directorate of Labour’s policy is that all employees enjoy equal pay and equal conditions for the same or equally valuable work, so that no indiscriminate wage difference exists.

Equal treatment means that wages are determined in the same way for women and men. The criteria used for wage determination shall not involve discrimination based on gender. Wages are defined in Article 2(9) of the Equality Act as general remuneration for work and any kind of remuneration, directly or indirectly, whether through benefits or in other forms, paid by the employer to his employee for his work.

To implement the equal pay policy, the Directorate undertakes to document, implement, maintain and continually improve the management of the equal pay system in accordance with the requirements of the standard ÍST85 and determine how its requirements will be met. The Directorate has implemented a procedure and defined criteria for determining wages, whereby each person is paid for his/her work based on its value regardless of gender, gender identity or other non-disputable reasons. The objective of the Directorate is that the unexplained gender wage gap should not exceed 2%.

To achieve this objective, the Authority will:

• Implement a certified equal pay system based on the equal pay standard ÍST 85, document it and maintain it.

• Perform a pay analysis at least once a year, comparing equally valuable jobs and checking whether the difference in pay is measured by gender and presenting the main results to staff.

• React to unexplained wage differences with continuous improvements and monitoring. If there is an unexplained difference between individuals, it should be addressed immediately, but if there is an unexplained difference between groups, it should be corrected from next year.

• Internal audit and annual reviews of management.

• Follow the relevant laws, regulations and collective agreements in force at any given time and confirm at a meeting compliance with the law.

• Annually present the policy to the employees of the Agency. The policy shall also be made publicly available on the Agency's external website.

The equal pay policy is an integral part of the Directorate of Labour’s wage policy.

Adoption at the Board meeting on 13 November 2021

Unnur Sverrisdóttir President