Wage terms and rights
General workers in hotels
Other terms and rights
December bonus
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 or 1800 hours. 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 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 2023, was ISK 103.000
- December bonus for 2024 is ISK 106.000
- December bonus for 2025 is ISK 110.000
- December bonus for 2026 is ISK 114.000
- December bonus for 2027 is ISK 118.000
Meals at hotels and restaurants
The employer provides employees with meals during working hours, free of charge.
The employer provides employees with meals during working hours, free of charge.
Travel expenses at hotels and restaurants
The employer is to pay employees an amount corresponding to 2½ times the start fee of …
The employer is to pay employees an amount corresponding to 2½ times the start fee of taxis during the part of the day/night when public transport is not available. According to the price list in April 2017, this corresponds to ISK 1,725 at Hreyfill and ISK 1,625 at BSR.
Employers may, however, transport the workers at their own expense if they so wish, provided that rules on the transport arrangements have been established.
Minimum rest periods
Working hours shall be arranged in such a way that during each 24-hour period, starting from …
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.
Refreshment breaks at hotels and restaurants
Employees on 8-hour shifts receive two coffee breaks, a total of 35 minutes, that are considered …
Employees on 8-hour shifts receive two coffee breaks, a total of 35 minutes, that are considered part of the working hours. Employees on longer shifts shall also have a coffee break equivalent to 5 minutes for each hour, to be used as a single continuous coffee break.
Holiday bonus
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 or 1800 hours. 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 2022, is ISK 53.000
- Holiday bonus for 2023, is ISK 56.000
- Holiday bonus for 2024 is ISK 58.000
- Holiday bonus for 2025 is ISK 60.000
- Holiday bonus for 2026 is ISK 62.000
- Holiday bonus for 2027 is ISK 64.000
Vacation Rights
The minimum vacation pay is 10.17% of the employee’s total wage. As of May 1, 2024, …
The minimum vacation pay is 10.17% of the employee’s total wage.
As of May 1, 2024, vacation accrual will change as follows (vacation that will be taken in the vacation year starting May 1, 2025).
- An employee who has reached the age of 22 and has worked for 6 months in the same company shall have the right to vacation for 25 days and vacation pay amounting to 10.64%
- An employee who has worked for 5 years in the same company has the right to vacation for 26 working days and vacation pay amounting to 11.11%.
As of May 1, 2025, vacation accrual will change as follows (vacation that will be taken in the vacation year starting May 1, 2026).
- An employee who has worked for 5 years in the same company is entitled to vacation for 28 working days and vacation pay amounting to 12.07%.
Vacation entitlement is calculated from May 1 – April 30 each year. Summer vacation period is from May 2 to September 30. Vacation rights earned due to work in the same company is renewed after three years of work in a new company, provided it has been verified.