Minimum wages for a 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 May 2016 ISK 260,000 per month
1 May 2017 ISK 280,000 per month
1 May 2018 ISK 300,000 per month
Every month, extra compensation shall be paid on top of the wages of those employees who do not attain the above income. In this connection, wages means any payments, including any type of bonus payments or allowances and extra pay, that accrue within the period of the above working hours.
The extra compensation paid to ensure minimum wage income is not reduced as Contractual wage increases due to the employee’s further education, as decided in collaboration with the employer, will not reduce this extra compensation.
Pay for overtime work carried out in excess of the 173.33 hours per month and payments to cover expenses paid are not included in this context.