Minister for Women urges companies to act

Iceland’s move to shrink its 5.7 per cent pay gap came into effect on January 1, sparking a wave of discussion on equal pay around the world.

Under the groundbreaking policy, companies with more than 25 staff will be required to report their equal pay policies to government to obtain a certification.

Any companies that fail to show equal pay will face fines.

Kelly O’Dwyer, who took over from Michaelia Cash as Minister for Women in the December Cabinet reshuffle, said the Federal Government had already taken steps to address the nation’s gender pay gap.

But she said government would continue to look at whether further reforms were required.

It’s understood government officials will look closely at Iceland’s legislation as part of their work to reduce Australia’s 15.3 per cent pay gap.

“Women play a critical role in the workforce,” Ms O’Dwyer said. “Forming half the population, I think it is fair to expect that women are paid the same as their male counterparts if they are doing the same work.”

Mandatory reporting for employers with 100 staff or more on the gender composition of their workforce, equal pay between women and men, and conditions such as flexible working arrangements have already been introduced by the Federal Government.

Employers with 500 or more staff must also have a formal policy or strategy in place to encourage gender equality.

Telstra’s group executive of HR Alex Badenoch said Iceland’s legislation was “worth watching” but companies should be more proactive on gender equality first.

“As an Australian company, Telstra, and all other Australian companies should first focus on what we can do ourselves,” she said.

“There’s a lot we can do to change things and we’re re-