Iceland Employment Guide

Iceland Employment Guide

Iceland, located in the North Atlantic, has a population of about 370,000. Its economy is driven by fisheries, tourism, renewable energy, and technology. Employment in Iceland is regulated by labor laws that cover working hours, minimum wages, leave entitlements, and employee protections. Collective bargaining agreements are common and play a significant role in setting wages and conditions. Employers must comply with mandatory social security contributions, pension plans, and workplace safety regulations. Iceland offers a stable labor market for both local and international employees.

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Currency

Icelandic Króna (ISK)

Capital

Reykjavik

Official language

Icelandic

Salary Cycle

Monthly

Our Employment Guide in Iceland

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Paid Leave Entitlements for Full-Time Employees

At SailGlobal, we recognize that paid time off is essential for employee well-being and productivity. Our leave policy is designed to reward loyalty and tenure, with vacation days increasing as employees accumulate more years of service.

Years of ServiceAnnual Paid Leave DaysMonthly Accrual Rate
Less than 5 years24 days2 days per month
5-10 years27 days2.25 days per month
More than 10 years30 days2.5 days per month

Part-time team members receive pro-rated leave benefits based on their working hours, ensuring equitable treatment across our workforce.

Icelandic Public Holidays

Iceland observes 12 official public holidays annually, providing regular opportunities for cultural celebration and rest. These statutory days are paid for all eligible employees.

The complete list of national holidays includes:

  1. New Year's Day
  2. Good Friday
  3. Easter Monday
  4. First Day of Summer
  5. Labour Day
  6. Ascension Day
  7. Seafarers' Day
  8. Icelandic National Day
  9. Commerce Day
  10. Icelandic Language Day
  11. Independence Day
  12. Christmas Day

For international HR professionals managing teams in Iceland, understanding these leave provisions is crucial for compliance and effective workforce planning. Many global companies like SailGlobal have successfully implemented these policies while maintaining operational excellence.

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