Wages for after-hours work, overtime work and major public holiday work

After-hours and overtime wages for shop workers

Work outside the daytime work period is paid by hourly wages amounting to 0.8235% of monthly wages for daytime work up to 171.15 hours work each month (39½ hours on average per week). Work in excess of 171.5 hours is paid by hourly wages amounting to 1.0385% of monthly wages for daytime work.

Work during the period from 00:00 midnight to 7:00 is paid with hourly wages amounting to 0.8824% of monthly wages for daytime work up to 171.15 hours of work each month.

After-hours and overtime for office workers

Work outside the daytime work period is paid with hourly wages amounting to 0.875% of monthly wages for daytime work up to 162.5 hours work each month (37½ hours on average per month). Work in excess of 162.5 hours is paid with hourly wages amounting to 1.0385% of monthly wages for daytime work.

Work during the period from 00:00 midnight to 7:00 is paid with hourly wages amounting to 0,9375% of monthly wages for daytime work up to 162,5 hours each month.

Major public holiday wages

All work done during major public holidays is paid with hourly wages amounting to 1.375% of monthly wages for daytime work. This does not apply to scheduled work where winter break holidays are granted according to specific agreements due to work on such days, in which case rules of payment remain unchanged.

Divisors for hourly wages

Coffee breaks taken
Each employee’s hourly daytime rate of pay is found by dividing the regular wage of the appropriate step on the pay scale by 170 (see Section 1.1.) for shop assistants and by 160 for office workers.

No coffee breaks taken
Each employee’s hourly daytime rate of pay is found by dividing the regular wage of the appropriate step on the pay scale by 158.5 (see Section 1.1.) for shop workers and by 157.1 for office workers.

Divisors for calculating daily pay rates and holiday allowance
Each employee’s daily daytime rate of pay is found by dividing his regular monthly wage by 21.67 (Saturdays not included).

Example of calculations

Daytime wages
To find out wages for one day, monthly wages are divided by 21.67 which is the average of week days in a month.

Fixed monthly wages / 21.67 = 1 day.

ISK 200,000 / 21.67 = ISK 9,229.34 for each day.

Week’s wages
To find out wages for one week, monthly wages are divided by 4.333 which is the average work week in a month.

Fixed monthly wages / 4,333 = 1 week.

ISK 200,000 / 4.333 = ISK 46,157.39 for a week’s wages.

After-hours work
Shop work: Fixed monthly wages x 0.8235% = after-hours hourly wages.

ISK 200,000 x 0.8235%= ISK 1,647.

Office: Fixed monthly wages x 0.875 = after-hours hourly wages.

ISK 200,000 x 0.875% = ISK 1,750.

Overtime
Shop work/Office: Fixed monthly wages x 1.0385% = overtime hourly wages.

ISK 200,000 x 1.0385% = ISK 2,077.

Night work
Shop work: Fixed monthly salary x 0.8824% = night work hourly wages.

ISK 200,000 x 0.8824% = ISK 1,764.80.

Office: Fixed hourly wages x 0.9375% = night work hourly wages.

ISK 200,000 x 0.9375% = ISK 1,875.

Major public holiday wages
Shop/office: Fixed hourly wages x 1.375% = major public holiday hourly wages

ISK 200,000 x 1.375% = 2,750.