At the local level, job evaluation has long been used in setting salaries with the aim of eliminating the wage gap that is inherent in the undervaluation of women's jobs and the gender division of the labor market. This means that the assessment of the value of jobs is based on uniform criteria that should be free of gender bias. This undoubtedly plays a significant role in the unique position that local governments have had for some time in measuring the gender pay gap in this country.

The results of Statistics Iceland's latest wage survey showed that in 2019 the unadjusted gender pay gap was 14.8% in the general labour market, 14.0% for government employees and 7.4% for local government employees. This indicates that the local government's methodology for setting wages, which prioritizes job value, is working.

With the goal of doing even better, the City of Reykjavík and the Association of Icelandic Municipalities have established an Equal Pay Office with the role of supporting municipal managers in implementing wage setting with the goal of equal pay.

The Equal Pay Office provides municipalities and their owned companies with advice and education in the field of job evaluation and equal pay issues.

The Equal Pay Agency's role is to promote equal pay for municipal employees and to provide support to their managers in fulfilling the provisions of the Equality Act that comparable and equally valuable jobs in the municipalities are paid equal pay. By strengthening the municipalities' equal pay work, the implementation and maintenance of equal pay certification is supported.

The Equal Pay Agency also provides advice and support for the development of analytical and evaluation tools that promote gender equality and marginalized groups based on job evaluation methodologies.

The Job Evaluation Project Office operates within the Equal Pay Office in accordance with the objectives of the Equality Act and the decisions of the professional board of the job evaluation system SAMSTARF.

The Equal Pay Office is intended to build and disseminate knowledge in the field of equal pay issues and thus promote equal pay.

In the 1990s, it was considered at the municipal level that the methodology used for job classification did not fully meet the requirements of the Equality Act that women and men should be paid equal pay for the same or equivalent work. Subsequently, consideration was given to implementing a job evaluation system within the municipalities. The process was therefore undertaken to implement a job evaluation system that could contribute to transparency and objective salary decisions based on the demands that the job places on employees.

The job evaluation system that was considered most suitable was the job evaluation system of the British local authorities. The system was designed by a group of experts in collaboration with local authorities and trade unions in the UK and its design also involved expert consultants on equal pay. In addition, it was worked on with the International Labour Organization (ILO) to ensure that the system was in accordance with international law and conventions, as the ILO has emphasized the use of job evaluation systems to ensure equal pay. The system was adapted to Icelandic conditions, was given the name SAMSTARF and was implemented at the same time by the city and the Association of Icelandic Local Authorities.

Since its implementation, the municipalities have worked systematically to increase the proportion of jobs that are evaluated in this way to achieve the goal of all jobs being evaluated based on the same criteria.

With nearly two decades of experience in job evaluation, local governments have a unique position. They have gained valuable experience and an understanding of the importance of the job evaluation systems used as a basis for setting salaries, promoting equal pay regardless of gender, origin, ethnicity and other discriminatory variables. They also understand that for this to be the case, job evaluation systems need to be based on knowledge of the position of women and marginalized groups in the labor market and the historical and societal influences on the valuation of jobs.

As more experience has been gained in the operation of the job evaluation system and equal pay issues have received more attention, including in connection with the enactment of equal pay certification, the need for managers in local governments for education and advice in connection with job evaluation and equal pay issues in general has increased.

The Association of Icelandic Local Authorities and the City of Reykjavík have collaborated in the field of equal pay and job evaluation for a long time. The collaboration has been successful and has yielded results in the fight for gender equality.

Equal pay issues have received increased discussion and attention in recent years, including in connection with equal pay certification, discussions about a gender-segregated labor market, and job evaluation. At the same time, the need for managers in local governments for education and advice in connection with job evaluation and equal pay issues in general has increased.

In response, the Association of Icelandic Local Authorities and the City of Reykjavík decided to further strengthen their cooperation in the field of equal pay and establish an Equal Pay Office with the aim of even better supporting the municipalities' equal pay work.