Wages

Minimum income for full-time work

Minimum income for a full-time position, i.e. 171.15 hours worked per month (39.5 hours per week), are 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 May 2015 ISK 245,000 per month
  • 1 January 2016 ISK 260,000 per month
  • 1 May 2017 ISK 280,000 per month
  • 1 May 2018 ISK 300,000 per month

Wages for after-hours work, overtime work and work on major public holidays

After-hours and overtime wages: shop workers
  • Payment for work done outside the daytime working period shall be made at hourly rates equivalent to 0.8235% of monthly wages for daytime work up to 171.15 hours per month (an average of 39½ hours per week). Payment for work in excess of 171.15 hours shall be made at hourly rates equivalent to 1.0385% of monthly wages for daytime work.
  • Payment for work carried out between the hours of 0:00 and 7:00 shall be at an hourly rate that is 0.8824% of monthly wages for daytime work up to 171.15 hours per month
After-hours and overtime wages: office workers
  • Payment for work done outside the daytime working period shall be made at hourly rates equivalent to 0.875% of monthly wages for daytime work up to 162.5 hours per month (an average of 37½ hours per week). Payment for work in excess of 162.5 hours shall be made at hourly rates equivalent to 1.0385% of monthly wages for daytime work.
  • Payment for work carried out between the hours of 0:00 and 7:00 shall be at an hourly rate that is 0.9375% of monthly wages for daytime work up to 162.5 hours per month.
Major public holidays
  • Payment for all work done on major public holidays shall be made at hourly rates equivalent to 1.375% of monthly wages for daytime work. This shall not apply to regular work for which winter leave entitlement is granted for work on the days referred to, in which case the valid rules on payment shall apply without amendment.
Rules on wage payments
  • Wages shall be paid each month on the first day after the end of the month for which wages are paid. If this day falls on a holiday, then payment shall be made on the last working day of the month. Employees shall receive pay-slips when each wage payment is made, on which the payment shall be itemised, e.g. under daytime pay, after-hours pay and overtime, with the number of hours worked in after-hours and overtime work being stated. All deductions shall also be itemised. Payment for all after-hours and overtime work shall be made in a single payment, retrospectively, for each month.

What are wages?

Wage agreements between employer and employee shall reflect the employee’s work contribution, competence, educational qualifications and skills, and also the nature of the job and the responsibility it involves.

VR´s Wage Survey

VR has conducted a yearly Wage Survey among its members for the past twenty years. The objective is to provide members with information on wages in different occupations and industries so they can accurately assess their own standing and prepare for wage or employment interviews. The survey also provides valuable information on the gender pay gap among members.