Wage terms and rights
Cook that manage one or more assistants
Minimum wages Launaflokkur 10
Other terms and rights
During the first two weeks of employment, there is no employment-termination notice.
After two weeks of consecutive employment with the same employer: 12 calendar days
After 3 months of consecutive employment with the same employer: 1 months, starting the 1st of the next month.
After 2 years of consecutive employment with the same employer: 2 months, starting the 1st of the next month.
After 3 years of consecutive employment with the same employer: 3 months, starting the 1st of the next month.
Explanation: If an employee who has worked for the employer for two consecutive years is dismissed, for example on 12 March, he has both the right and the obligation to work for two months from the beginning of March / April. His last working day would therefore be 31 May.
After 10 years’ work for the same employer, the employee is entitled to, at the age of
– 55 – 4 months as of the beginning of the month.
– 60 – 5 months as of the beginning of the month.
– 63 – 6 months as of the beginning of the month.
The employee, however, may resign from work with three months’ notice.
All employment terminations must be in writing.
The employer is under obligation to pay accrued holiday entitlements. Such payments are usually paid at the end of the termination notice period. In addition, the employer is under obligation to pay holiday and December bonuses in accordance with the number of hours worked and the employment proportion during the year.
During the first year of employment with the same employer: two days at replacement pay* for every month of work.
After one year of continuous employment with the same employer: one month at replacement pay.
After two years of employment with the same employer: one month at replacement pay and one month at day-work pay.
After three years of employment with the same employer: one month at replacement pay and two months at day-work pay.
After five years of employment with the same employer: one month at replacement pay, one month at full day-work pay (i.e. regular day-work pay, bonus and shift differentials) and two months at regular day-work pay.
Note: After 5 years of employment at the same company, employees retain part of their sickness rights even if transferring to another company.
The right to sickness leave is based on a twelve-month period.
- Replacement pay – the rate that the worker would have been paid, had he not fallen sick.
- Full day-work pay – i.e. regular day-work pay, bonus and shift differentials but no overtime
- Regular day work pay – the number of hours that would have been paid by daytime work, i.e. not shift differentials and overtime.
Sickness rights due to children
The first 6 months at work: 2 days for each month worked
After 6 months at work: 12 days at every 12 month period
Sickness rights due to children is for children under 13 years of age. This also applies to children under the age of 16 who need to be hospitalized for one day or more.
To report sickness:
The employer’s obligation to pay wages in case of sickness due to diseases and accidents is dependent on the employee having reported the sickness in the correct manner as stipulated by law and collective agreements. When an employee is absent due to sickness, it is necessary for the employee to notify the employer as soon as possible. When hiring an employee, it is often stated how they should report sickness. It is normal for them to be reported to the supervisor, foreman or office manager or the person in charge of personnel management.
It is not custom to require sick employees to report sickness to more than one place. The employer must be able to perform a further notification role and an information role within the workplace. An employer should not set such strict rules for reporting sickness that people find it unnecessarily difficult. Fairness must be shown here. For example, a person cannot be deprived of sick leave because he/she was not required to report sickness before noon on the first day of sickness.
It is also ASÍ’s opinion that employers are not permitted to condition the payment of wages in case of sickness absence upon notification of illness to special companies in the field of health protection. Such rules do not go beyond the provisions of collective agreements, which normally prescribe notification to the next superior.
The minimum vacation time is 24 working days. The vacation pay is 10.17% of the employee’s total wage.
- Following 5 years’ employment in the same company or the same profession, employees’ vacation time shall be 25 days, and vacation pay shall be 10.64%.
- Following 10 years’ employment in the same company, employees’ vacation time shall be 30 days, and vacation pay shall be 13.04%.
Vacation right is calculated from May 1st – April 30 each year. The vacation summer period is from May 2 – September 30.
Vacation rights earned because of work for the same company will be renewed after three years’ work for a new company, that this has been verified.
Major public holidays
- New Year’s Day
- Good Friday
- Easter Sunday
- Whit Sunday
- 17 June- the national day of Iceland
- Christmas Eve, after 12 noon
- Christmas Day
- New Year’s Eve, after 12 noon
All extra work on major public holidays is paid at an hourly rate which is 1.375% of
monthly pay for day work. Other rules may apply to shift workers.
Other days off
- Maundy Thursday
- Easter Monday
- Ascension Day
- First day of summer
- 1 May
- Whit Monday
- Boxing Day
- First Monday in August
All extra work on other days off is paid with overtime, 80% more than daytime or 1,3085% of the monthly pay for day work. Other rules may apply to shift workers.
22 years and older: 1 year in profession
18 -21 years old: 95% af starting wages at the training time
Full starting wages are based on the employee reaching the age of 18 and acquiring the ability to carry out the relevant work. Training time is a maximum of 300 hours at the same employer or 500 hours in the same profession after reaching the age of 16.
17 years 89% of starting wages
16 years 84% of starting wages
15 years 71% of starting wages
14 years 62% of starting wages
The age level of employees under the age of 18 is based on the year of birth.
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.”
Working hours shall be arranged in such a way that during each 24-hour period, starting from the beginning of the working day, the employee receives at least 11 hours’ continuous rest. If possible, this daily rest period shall include the period between 23:00–6:00.
Work may not be arranged in such a way that the working period exceeds 13 hours.
If the employee is especially requested to come to work before the 11 hours of rest have been reached, the employee is entitled to additional rest of 1.5 hours for every hour by which his/her rest is reduced.
The employee shall receive at least one weekly day off; the week should begin on Monday.
The bonus is paid on 1 June each year.
Those who have been employed full-time during the vacation year, 1 May – 30 April each year, are entitled to the full holiday bonus. Alternatively, the bonus is paid in proportion to the employment proportion and length of work. The holiday bonus is a fixed amount; holiday allowance is not added.
A full year’s employment is 45 weeks minus vacation. Employees who have held consecutive employment with the same employer for 12 weeks over the last 12 months (as of 30 April) or are employed during the first week of May are entitled to a bonus.
Holiday bonuses are to be settled on termination of employment.
After one year working for the same employer, absence for statutory maternal/paternal leave is considered working time when calculating holiday pay bonus.
Holiday bonus for 2020, was ISK 51.000
Holiday bonus for 2021, is ISK 52.000
Holiday bonus for 2022, is ISK 53.000
Holiday bonus for 2023, is ISK 56.000
The December bonus is paid no later than 15 December each year.
Those who have been employed full-time during 1 January – 31 December each year, are entitled to the full December bonus. Alternatively, the bonus is paid in proportion to the employment proportion and length of work. The December bonus is a fixed amount; vacation time is not calculated on top of the December bonus.
A full year’s employment is 45 weeks minus vacation. Employees who have held consecutive employment with the same employer for 12 weeks over the last 12 months or are employed during the first week of December are entitled to a bonus.
December bonuses are to be settled on termination of employment.
After one year working for the same employer, absence for statutory maternal/paternal leave is considered working time when calculating December bonus.
December bonus for 2020, was ISK 94.000
December bonus for 2021, is ISK 96.000
December bonus for 2022, is ISK 98.000
December bonus for 2023, is ISK 103.000