Iceland Leads The Way In Closing The Gender Pay Gap

Iceland Leads The Way In Closing The Gender Pay Gap


June 13, 2023 | Eul Basa

Iceland Leads The Way In Closing The Gender Pay Gap


With movements like #MeToo taking over social media and celebrities lobbying for salary transparency, the wage gap between men and women is getting more scrutiny than ever. But is it getting better?

A few years ago, sports fans were surprised to learn that even internationally-acclaimed athletes have to fight for fair play. After winning the World Cup, the U.S. Women’s Soccer Team took the league to court demanding they be paid the same amount as the men's team—but it’s already revealed that in terms of equal pay rights for women, the U.S. is losing the game.

railway-1758208_1920-300x91.jpgPixabay

Iceland, on the other hand, is winning. The country made a bold step forward by promising government enforcement of laws requiring equal pay, and as of 2021, it has closed 89.2% of its gender wage gap. Iceland also tops lists of overall gender equality, safest places for women to travel alone, and happiest countries in the world. Could these things be related? We’re going to risk an educated guess and say yes. So why hasn’t the rest of the world followed suit? The answer is, unsurprisingly, complicated.

Equal pay for equal work

That headline might seem like a simple, almost juvenile, maxim, but the truth is that the gender pay gap is still running rampant. Multiple acts have been passed trying to curb it. The U.S. passed the Equal Pay Act in 1963 and the UK instituted the Equality Act as recently as 2010. Still, these laws tend to lack actual teeth. That all changed in 2018 when Iceland committed to actively enforcing equal pay. Now, they require companies to submit paperwork proving that people in equivalent roles receive equivalent pay, no matter their gender, race, or background. One year later, no other country has followed suit, a disappointing anticlimax to what should, by now, be a matter of fact.

ice-4053056_1920-300x169.jpgImage by Tabita Lopez from Pixabay

Advertisement

Progress, but not perfection

We’ve come a long way, baby—or at least that’s what the mega-corporations that benefit from unequal pay standards want you to think. But according to recent studies, in 2018 women still made 82 cents for every dollar men made for the same amount of work. The gap only gets larger when differences of color and nationality are factored in. It’s estimated that the world will have to wait at least another 100 years before the gap closes. That's a long time when you consider that the average woman loses over half a million dollars during the span of a lifetime, compared to what her male counterpart makes.

stefan-stefancik-nTwgHtTycF8-unsplash-300x200.jpgPhoto by Štefan Štefančík on Unsplash

Advertisement

Taking responsibility

What's the reason for the lag? A major issue is that countries have different opinions on whose responsibility it is to make sure women workers get paid the same. In the UK for instance, the onus is on the employee to bring discrepancies to light, usually via their unions. There are a host of reasons why employees might choose not to do this, such as peer pressure, fear of reprisal, and simple apathy. Furthermore, once the information is in the union’s hands, it’s up to them how to deal with it. Past efforts, like lobbying and protests, have shown to be less than miraculous.

alex-iby-4Znav1etTmU-unsplash-300x200.jpgPhoto by Alex Iby on Unsplash

Advertisement

Leaving it to the law

Other than Iceland, only six countries in the world have laws that protect women’s rights in the workplace as well as men’s: Belgium, Sweden, Luxembourg, Latvia, Denmark, and France. Even in those countries, enforcement remains outside of the purview of the law. Some companies, like Citibank in the U.S. for example, have stated that they’re waiting for government mandates to light the way for equal pay. That’s exactly what the government of Iceland decided to do, and it seems to have helped; Iceland now has the lowest pay gap in the world, followed by Norway, Sweden, and Finland. Way to go, Scandinavia. 

agnieszka-boeske-cFdH_t5xBxk-unsplash-300x199.jpgPhoto by Agnieszka Boeske on Unsplash

Advertisement

Seeing it in action

Though considered a human right by the UN, equal pay continues to evade most of the world. However, that's changing. One way you can show your support is by spending your tourism dollars on countries that are making gender equality a priority. As if there weren’t enough reasons to visit Iceland, now you have one more.

While you're there, visit places that are conscientious about the issue. The Reykjavik City Museum regularly runs exhibitions about the history of women in Iceland. For bookworms, the Women's Book Lounge has every book written by Icelandic women writer, many of them in English translation. The Women's History Archive is the place if you're into black and white photos of stern suffragettes, and who isn't?

While closing the wage gap is still a global issue, and a global struggle, at least it's moving in the right direction. We look forward to adding pins to the equality map as more countries follow suit.

ben-eaton-UbSDq89yUkA-unsplash-300x300.jpgJen Batler

Advertisement

READ MORE

I want to get a prenup before our marriage, just to give us both security. My husband says we don't need one, and I'm overreacting. Is he right?

Is wanting a prenup overreacting, or just smart financial planning? This engaging guide explains what prenups do, why couples get them, what they can’t cover, and how to talk about one without turning love into a legal battle.
April 22, 2026 Jack Hawkins

My HOA says that my house's old-timey look is "bringing down the neighborhood." They've asked me to make some changes. Do I really have to?

Can your HOA really force you to change your home’s old-fashioned exterior? Here is what homeowners should know about HOA rules, selective enforcement, grandfathered designs, and when to fight back.
April 22, 2026 Jack Hawkins

I'm looking for a new bank. My brother says I should go with one of the "Big 5" but my friend recommended a Credit Union. Who's right?

Choosing between a Big 5 bank and a credit union? This friendly guide breaks down the pros, cons, fees, service, perks, and convenience of each so you can pick the right home for your money.
April 22, 2026 Jack Hawkins
Worried woman manager holding phone

I Sent Money To The Wrong Person Through A Banking App. Is There Any Way To Get It Back?

Sending money through a banking app is supposed to be quick and painless—tap a few buttons, and you’re done. But all it takes is one wrong email, one outdated contact, or one rushed moment, and suddenly your money ends up with the wrong person. It’s a pretty awful realization. The upside? It’s not always a lost cause—but you do need to act fast and know what you’re dealing with.
April 19, 2026 J. Clarke
AI-generated image of a woman concerned about her neighbor's tree roots damaging her driveway.

My neighbor’s tree roots are damaging my driveway, but they say it’s not their problem. Are they right?

At first, it’s just a small crack in your driveway. Nothing major...until it spreads. You bring it up, expecting your neighbor to take some responsibility, but they brush it off and say it’s not their problem. So what can you do now? In a lot of cases, your neighbor might not be fully responsible, but that doesn’t mean you’re stuck with no solutions.
April 21, 2026 Quinn Mercer
Internalfb Image (1)

My bank charged me a fee for not using my account enough. That seems so backwards, can they really penalize me for that?

You open a bank account, leave your money there, and expect the bank to be happy about it. Then a fee shows up because you did not use the account enough, and suddenly it feels like you are being punished for doing nothing at all. As frustrating as it sounds, banks can often charge inactivity or dormancy-related fees if their account agreement clearly allows it.
April 21, 2026 Miles Brucker


Disclaimer

The information on MoneyMade.com is intended to support financial literacy and should not be considered tax or legal advice. It is not meant to serve as a forecast, research report, or investment recommendation, nor should it be taken as an offer or solicitation to buy or sell any securities or adopt any particular investment strategy. All financial, tax, and legal decisions should be made with the help of a qualified professional. We do not guarantee the accuracy, timeliness, or outcomes associated with the use of this content.





Dear reader,


It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.


Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!


Warmest regards,

The Moneymade team