The unadjusted gender pay gap (GPG) in Iceland was 18.3% in the year 2014 and decreased from 19.9% in 2013. In 2014 the GPG was 19.9% in the private sector and 13.2% in the public sector. Within the public sector the GPG was 14.1% in the central government and 6.7% in the local government. The low GPG in the local government is consistent with the narrow distribution of salaries within the group and high proportion of women. They are about 75% of employees in the local government. Further information about distribution of earnings can be found in a press release from March 31st 2015.


The GPG was highest in the economic activity of financial and insurance activities 37.5% and lowest in the economic activity of human health and social activities 7.4%. The high GPG in financial and insurance activities is consistent with the wide distribution of salaries in the economic activity. From 2013, the GPG decreases in economic activities mostly governed by the public sector that are public administration, education and human health activities.


The unadjusted gender pay gap (GPG) is based on the methodology of the Structure of earnings survey (SES). The gender pay gap in unadjusted form represents the difference between average gross hourly earnings of male employees and of female employees as a percentage of average gross hourly earnings of male employees. The calculation is based on October each year and gross hourly earnings include paid overtime and exclude non-regular payments. The more overtime work the higher the gross hourly earnings. Mean paid weekly hours in the year 2014 were 44.1 for full-time working men and 41.9 for women. The gender pay gap indicator has been defined as unadjusted i.e. not adjusted according to individual characteristics that may explain differences in earnings for men and women. Along with releasing new results for 2014, data for 2013 was revised.