Minimum wages for full-time work

Minimum income (before taxes) for a full-time position, i.e. 173.33 hours per month (40 hours per week), for an employee who has reached the age of eighteen and has worked for at least six months in the same company (for a minimum, however, of 900 hours) will be:

1 April 2019 ISK 317,000 per month

1 April 2020 ISK 335,000 per month

1 January 2021 ISK 351,000 per month

1 January 2022 ISK 368,000 per month

However, the minimum income guarantee does not have to affect the minimum rate, although this could simplify the calculation of employee´s wages. As stated before, the minimum income is based on 18 years of age and six months of working experience. After these requirements have been met, the employee is entitled to receive the minimum income for full-time employment regardless of his wage rate. For example, the wage rate, monthly wages, for full-time employee is ISK 351,000. after January 1, 2021, he has turned 18 and has worked for the company for six months, his wages on the pay slip could look like this:

Monthly wages: ISK 340,000
Minimum guarantee: ISK 11,000
Total wages: ISK 351,000

It is worth noting that according to Act on part-time employees no. 10/2004, part-time employees “shall not enjoy relatively poorer terms.”