The member states of the EU can, somewhat simplified, be divided into three categories:
1. Countries that have adopted complete legislation: Slovakia, Lithuania, Malta and Italy have adopted legislation and met the transposition deadline. These laws have minimal or no transition periods.
2. Countries that have published draft legislation: Several countries have published draft laws, but have either proposed a delayed entry into force date or have not clearly stated when the law will come into force.
3. Countries that have not yet published implementing measures: Many countries, including several of the larger EU countries, have not yet published any draft legislation.
The EU Equal Pay Directive is relevant to the EEA, but has not yet been incorporated into the EEA Agreement. It is therefore unclear when the new requirements will apply in Norway. But the direction we are moving in is clear: The requirements for transparency regarding wages and for documentation are increasing.
In Norway, many Norwegian employers are already required to map and document pay gaps between women and men. From 1 January 2020, the requirements were expanded and strengthened. All employers have a duty to work actively for equality and non-discrimination. Norwegian companies that work systematically with this activity and reporting obligation (ARP) are far better equipped when the Equal Pay Directive comes into force.
In this article, we clarify what employers should know about the current rules in Norway.
Current Norwegian provisions on equal pay
Equal pay means that women and men should receive equal pay for equal work – and for work of equal value. Pay should be determined in the same way, and without regard to gender. This equal pay provision is enshrined in Section 34 of the Equality and Discrimination Act and applies to all employers, regardless of size.
It is not enough to compare positions that are similar – the same job title and level in the company. For example, two different jobs may have the same requirements for competence, responsibility and effort, and then the requirement for equal pay also applies across these.
The activity and reporting obligation (ARP)
Since 2020, Norwegian employers have had a statutory obligation to work actively, purposefully and systematically to promote gender equality and prevent discrimination, and to document and publish this work. ARP is thus a preventive work, and salary mapping is part of this. This obligation is regulated in the Equality and Discrimination Act, sections 26 and 26a.
The duty has two parts:
The duty to act is about working actively by mapping the risk of discrimination and obstacles to equality, analyzing the causes of any differences, initiating measures and evaluating whether the measures are effective. All employers in Norway, even the smallest ones, are required to take a general activity obligation.
The duty to report is about documenting the condition and activities that have been carried out. The documentation obligation applies to everyone. The requirement for reporting applies to public enterprises, and to private enterprises with more than 50 employees (or from 20 employees if one of the parties in the enterprise requires it). The report must be published - either in the annual report, on the website or in another publicly available document.
Salary mapping is part of ARP
The wage survey will provide answers to whether women and men receive equal pay for equal work and work of equal value. Specifically, this means that employers must:
- Group the positions into categories and levels by type of work and value (equal work and work of equal value)
- Map the gender distribution and wage differences in each group and in total
- Include all types of wages in the survey – both agreed wages/fixed wages, irregular allowances, bonuses, overtime pay and taxable benefits in kind should be included.
- Employees should be given the opportunity to compare their salary with the average at their level.
If the survey reveals unexplained wage differences, the employer is obliged to initiate measures to correct this.
The Equality and Discrimination Board can order businesses to fulfill this obligation, and as a last resort impose a fine. In addition, there is an independent risk related to the business's reputation - lack of public reporting on pay conditions is in itself a signal.
Do you need help with salary mapping, or ARP in general?
Are you unsure whether your business meets the requirements for ARP and salary mapping?
BUHR helps you gain an overview, document correctly and implement good measures.
