Wages of young people according to the agreement between VR and SA (Confederation of Icelandic Employers)
The age division of young people under the age of 18 is based on the year of birth. Thus, it does not matter where the employee’s birthday falls in the year, rather the relevant rate applies from 1 January each year for everyone and may not be lower than:
- 89% of the starting wage for age 17
- 84% of the starting wage for age 16
- 71% of the starting wage for age 15
- 62% of the starting wage for age 14
All VR wage tables can be found here and are calculated with regards to the above. Issued pay scales are minimum wage.
Starting wages apply to employees who have reached the age of 18 and gained the competence to undertake the work in question. Training periods are a maximum of 300 working hours for the employer or 500 hours in the profession after the age of 16. 95% of starting wages may be paid during the training period.
Assessment of length of service for wages can take place when the employee has acquired the right to a starting wage level. It takes into account the whole period since the employee began work at a company, regardless of age. A full year’s work is considered to be 1,800 hours.
It is prohibited to pay an employee aged 22 and older wages lower than according to a 6-month rate, i.e. the next service-related step above the starting rate; this does not apply to office workers.
The employee is to submit confirmation of experience in a profession, in which case length of service is taken into account as of the beginning of the next month after such confirmation has been submitted.
Wages of young people according to the agreement between VR and FA (The Icelandic Federation of Trade)
The age division of young people under the age of 18 is based on the year of birth and shall not be lower than 80% of minimum wage. Those younger than 16 years shall not be paid less than 75% of minimum wage.