Wages

Wages

VR’s collective wage agreements provide for individually agreed wages, stating: When determining wages between the employer and the employee, the wage shall reflect the employee’s work contribution, competence, educational qualifications and skills, as well as the nature of the job and the responsibility involved.

In order to assist VR members with individual wage agreements, VR conducts a wage survey twice a year that shows the median wage, average wage and wage distribution in specific jobs, both within certain industries and without regard to industries.

According to VR’s collective wage agreements, pay scales are minimum rate.

Pay scales 2019 - 2022

Older pay scales

VR and SA wage rates 2016 (Icelandic only)
VR and SA wage rates 2017 (Icelandic only)
VR and SA wage rates 2018 (Icelandic only)
VR and FA wage rates 2016 - 2018 (Icelandic only)

Information about wage rates is published subject to error.

Minimum wages for a full-time position

Note: According to the VR collective wage agreement, the minimum wages for a full-time position after a certain time with the same company are higher than what is specified in the pay scales.
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Minimum income for a full-time position, i.e. 171.15 hours worked per month (39.5 hours per week), from 1 January 2020, a total of 167.94 worked hours per month (38.75 hours per week), is to be as follows for an employee who has reached the age of 18 and has worked for at least six months in the same company (a minimum of, however, 900 hours):

1 April 2019 ISK 317.000
1 April 2020 ISK 33.,000
1 January 2021 ISK 351.000
1 January 2022 ISK 368.000

Every month, an extra compensation shall be paid on top of the wages of those employees who do not attain the above income. In this connection, wages mean any payments, including any type of bonus payments or allowances and extra pay, that accrue within the period of the above working hours. The extra compensation paid to ensure minimum wage income is not reduced as the result of any contractual wage increase due to increased.

Individually agreed wages

When determining wages between the employer and the employee, the wage shall reflect the employee’s work contribution, competence, educational qualifications and skills, as well as the nature of the job and the responsibility involved. Decisions regarding wages must take into account the Gender Equality Act.

If wages at workplaces where the working hours are determined by service time (opening hours) are determined as aggregate wages for the employee’s total work contribution, an estimate of the work contribution on which the aggregate wages are based shall be stated, with the average number of paid hours of overtime work each month or other factors involved in the wage structure, as appropriate. In the event of a change in the employee’s work contribution or in the employee’s job which conceivably changes the basis on which they are engaged, then their wages and wage structure shall be reviewed, taking into account the relevant changes, if either party considers there to be a reason to do so. The employer will in the same manner verify the composition of employee’s overall agreement and demonstrate that the employee’s total pay and conditions are not worse than those provided for in the collective agreement, should the employee so wish.

An employee is entitled to an interview with their superior once a year concerning their job and possible changes in employment terms. If an employee requests an interview, it should be granted within two months, and the results of the interview should be available within one month.

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Wages

Pay scales 2019 - 2022

Older pay scales