Equal Pay Day 2025 and Iceland's Pay Gap Is Growing Again
Today is UN International Equal Pay Day. It's a day to think about fair pay around the world. But in Iceland, we have bad news. Our gender pay gap is getting bigger, not smaller.
The Numbers Are Clear
Statistics Iceland just released new data. The gender pay gap was 10.4% in 2024. Last year it was 9.3%. We went backwards.
This means women earn about 10 cents less for every krona men earn. The gap gets worse as women get older:
Ages 24 and under: 0.7% gap
Ages 35-44: 9.4% gap
Ages 55-64: 16.7% gap
The private sector has the biggest problem. There, the gap is 15.2%. Some industries are much worse. Financial services have a 26.1% gap.
Even more troubling: A new study from the University of Iceland Institute of Economic Studies and BHM shows the return on university education has dropped by half since 2008. Women get university degrees at much higher rates than men in Iceland. But those degrees don't pay off equally.
A Global Problem
Iceland isn't alone. Companies around the world are cutting diversity programs. This started before 2025, but it's getting faster.
In the US, new government rules ended federal diversity programs. Many big companies followed. Google stopped its diversity hiring goals. Amazon removed diversity language from company reports. McDonald's changed its diversity team name. Meta ended its diversity team completely.
Walmart, Target, and Boeing also cut their programs. Even companies with government contracts are making changes.
Progress Can Disappear Fast
These changes show how quickly progress can disappear. When organizations stop focusing on equality, gaps grow fast.
Iceland proves this point. We have Equal Pay Certification laws. We have progressive policies. But our gap still grew by more than one percentage point in one year.
The main problem is job segregation. About 43% of working women are in public sector jobs. Only 15% of men work there. Different sectors pay differently.
Tech Sector Responsibility
Iceland's tech sector can lead. We are growing fast. We get global attention. We must make sure our success includes everyone.
The UN says women globally earn 77 cents for every dollar men earn. Women with children earn even less. Progress is very slow worldwide.
We have the tools to do better in Iceland.
What We Must Do
This situation needs action, not retreat. Iceland's tech sector should:
Keep measuring: Pay equality needs constant checking and fixing.
Think about everyone: Gender is just one issue. The research shows women fall much more in income when they have children than men do. Age, ethnicity, and disability also create barriers.
Lead globally: Iceland has always led on gender equality. The world needs good examples now.
Work together: Every company and hiring decision matters.
Our Community's Role
When big companies abandon diversity, Iceland's tech sector can show progress is possible.
We've seen what happens when we stop trying. Gaps get bigger. Inequality grows. Talent gets wasted.
Let's not let Iceland become another bad example.
Moving Forward
Progress starts with knowing where we are. We must understand how we got here. Then we must promise to do better.
The question isn't whether we can afford to focus on pay equity. It's whether we can afford not to.
This International Equal Pay Day, let's commit again to real change. Let's build workplaces where everyone can succeed and get fair pay.
