Efling union would like to draw the attention of its members to the fact that, according to most collective agreements, employers must pay holiday bonuses on June 1 in addition to regular wages. By diligently reviewing their payslip, members are encouraged to pay special attention to whether that payment has been included in their last paycheck. Suppose there is doubt that the holiday bonus has been paid correctly or other questions arise. In that case, members are advised to contact the union representatives at their workplaces, or the union itself.
A holiday bonus is a fixed amount and vacation is not calculated on top of it. The compensation is paid based on employment rate and working hours. Holiday bonus must be settled, in the event of termination of employment.
Note that collective agreements have yet to be reached in various sectors. In those cases, the holiday bonus amount applies for the year 2023.
Holiday bonus in the general labor market
The holiday bonus is to be paid on June 1 each year.
Those working full-time during the holiday year, 1 May – 30 April each year, are entitled to full compensation or per the employment rate and working hours. A holiday bonus is a fixed amount, vacation is not calculated on top of it.
Full-year job incl. 45 weeks after vacation. Those who have been continuously employed by an employer for 12 weeks in the last 12 months, incl. April 30 or are working in the first week of May are entitled to compensation.
The holiday bonus must be settled upon termination of employment.
After one year of employment with the same employer, absences due to statutory maternity leave are counted as working hours when calculating December and holiday compensation.
- The full holiday bonus in 2024 is ISK 58,000
Holiday bonus for those who work in nursing homes according to the collective agreement with the Association of Companies in Welfare Services
The holiday bonus is to be paid on June 1 each year.
Those who have worked for 13 consecutive weeks during the holiday year or are employed until April 30 are entitled to compensation.
Those working full-time during the holiday year, 1 May – 30 April each year, are entitled to full compensation, otherwise, the bonus will be paid per the employment rate and working hours. A holiday bonus is a fixed amount and vacation is not calculated on top of the vacation allowance.
Holiday bonus must be settled upon termination of employment.
- The full holiday bonus in 2023 is ISK 56,000.
Holiday bonus for hotel and restaurant employees
The holiday bonus is paid on June 1 each year.
Those working full-time during the holiday year, 1 May – 30 April each year, are entitled to full compensation or per the employment rate and working hours. A holiday bonus is a fixed amount, vacation is not calculated on top of it.
Full-year job incl. 45 weeks less vacation or 1800 hours. Those who have been continuously employed by an employer for 12 weeks in the last 12 months, incl. April 30 or are working in the first week of May are entitled to compensation.
Holiday bonus must be settled upon termination of employment.
After one year of employment with the same employer, absences due to statutory maternity leave are counted as working hours when calculating December and holiday compensation.
- The full holiday bonus in 2023 is ISK 56,000.
Holiday bonus for employees of other municipalities
Other municipalities include; Hveragerði, Kópavogur, Mosfellsbær, Seltjarnarnes, and Ölfus.
The holiday bonus is due on May 1 each year.
An employee with a 100% working rate is paid a personal allowance on May 1 each year. Payment shall be made proportionally based on the employment rate and length of service in the last 12 months before the payment date.
If an employee has retired during the year due to age, he shall be paid personal compensation proportionally based on the employment rate and length of service.
A holiday bonus is a fixed amount and vacation is not calculated on top of the vacation allowance.
- The full holiday bonus in 2023 is ISK 55,700.
Holiday bonus for Reykjavík City employees
The holiday bonus is to be paid on June 1 each year.
Those who have worked for 13 consecutive weeks during the holiday year or are employed until April 30 are entitled to compensation.
Those working full-time during the holiday year, 1 May – 30 April each year, are entitled to full compensation, otherwise, it will be paid per the employment rate and working hours.
A holiday bonus is a fixed amount and vacation is not calculated on top of the vacation allowance.
Holiday bonus must be settled upon termination of employment.
- The full holiday bonus in 2023 is ISK 56,000.
Holiday bonus for those who work for the state
On June 1 of each year, an employee employed until April 30 of the previous year shall be paid a special one-time payment, a holiday bonus, based on full-time work during the following vacation year. Payment shall be made proportionally based on employment rate and working hours. If an employee has retired during the vacation year due to age or after at least 3 months/13 weeks of continuous work during the vacation year, he shall be paid holiday bonus proportionally based on the time worked and employment rate. The same applies if the employee was out of work due to illness after the institution’s payment obligation ends or due to maternity leave of up to 6 months. The holiday bonus is a fixed amount and does not change according to other provisions of the agreement. Vacation pay is not calculated.
- The full holiday bonus in 2023 is ISK 56,000.