After-hours and overtime wages

After-hours and overtime wages according to VR and SA agreements

Work outside the daytime period is considered after-hours up to full daytime hours, i.e. 171,15 hours for shop workers and 162,5 hours for office workers. Work beyond this is considered overtime.

A written agreement may be made about a different work schedule within the daytime period to the effect that the employee delivers work within the daytime period exceeding full time work and collect these excess hours by whole and half days for paid time off later.

Overtime according to VR and FA agreements

Overtime is work performed outside normal daytime hours and on public holidays and Saturdays.

There is no after-hours work according to VR and FA agreements.
Work performed outside daytime hours may be paid by time off during daytime periods. In this case, 1 hour of overtime equals one hour and 48 minutes in daytime.

Time off instead of after-hours/overtime pay

According to the VR and SA agreement

An agreement may be reached between the employee and the employer to accrue leave due to afterhours/overtime work in such a manner that after-hours/overtime hours accrue for leave taking during daytime hours while the difference between after-hours/overtime pay and daytime pay is paid out on the next regular wage payment date or accrues in total toward leave taking during daytime work periods. The value of worked after-hours/overtime hours is to be used as the basis.

The parties are to reach an agreement as to when the leave is taken. Entitlement to leave pursuant to the above that has not been used before 1 May each year or on termination of employment is to be paid out based on the value of daytime work hours on the date of payment. Leave shall be taken by agreement and shall be organised in such a way as to cause the minimum disturbance to the functioning of the company.

All workers have the right to refuse to do after-hours/overtime work, and if they do so, they shall not be made to suffer in any way.

Public holidays and major public holidays

The feast days of the National Church of Iceland, i.e. Maundy Thursday, Easter Monday, Ascension Day, Whit Monday and Boxing Day, as well as First Day of Summer and 1 May.

Major public holiday work is work on New Year’s Day, Good Friday, Easter Sunday, Whit Sunday, 17 June, the August Bank Holiday (first Monday in August), Christmas Day and after 12:00 noon on Christmas Eve and New Year’s Eve.