Working Hours in Iceland
The standard working hours in Iceland are 8 hours per day and 40 hours per week. Any work beyond this must be compensated as overtime. However, many employees work longer hours due to collective agreements or individual contracts.
Employment Rights and Benefits in Iceland
Paid Vacation and Sick Leave
Employees in Iceland are entitled to a minimum of 24 days of paid vacation per year. In addition, workers are entitled to a varying amount of sick leave depending on the duration of their employment. For example, employees are entitled to up to 12 days of paid sick leave per year after a certain period of employment.
Social Security Benefits
All employees in Iceland must be registered with the social security system. Employers must contribute to the system on behalf of their employees, while employees must also make contributions. This contribution provides employees with a range of benefits, including healthcare, parental leave, and a pension.
Parental Leave
Expectant mothers and fathers in Iceland are entitled to 13 weeks of parental leave each. They are also entitled to an additional 2 weeks each if they share the leave. During the leave period, they are entitled to a certain amount of compensation based on their salary.
Severance Pay
If an employee is terminated without just cause, they are entitled to receive severance pay. The amount of severance pay depends on the length of service with the employer. For example, employees with less than one year of service are entitled to one month’s pay, while those with more than 10 years of service are entitled to four months’ pay.
Pensions
All employees in Iceland are entitled to a pension through the social security system. The pension is calculated based on the number of years of service and the average salary earned during the last five years of service. To qualify for a full pension, employees must have contributed to the system for at least 40 years.
Types of Pensions for Expats in Iceland
Expats who are living and working in Iceland may be eligible for a pension through the social security system. However, they must meet certain requirements. Firstly, they must have legal residency in Iceland and have contributed to the system for at least three years. Secondly, they must be at least 67 years old.
Expats who do not meet these requirements may still be able to receive a pension through a private pension plan. These plans are not regulated by the government and are offered by a range of private companies.
Retirement Age in Iceland
The retirement age in Iceland is currently 67 years old. However, there are some exceptions to this rule. For example, workers who have contributed to the system for at least 40 years may be able to retire earlier with a full pension.
In conclusion, workers in Iceland are entitled to a range of employment rights and benefits, including paid vacation and sick leave, social security benefits, and severance pay. All employees must be registered with the social security system, which provides a pension to those who have contributed for at least 40 years. Expats may be eligible for this pension if they meet certain requirements, or they may be able to receive a private pension plan. The retirement age in Iceland is currently 67 years old but may vary depending on contributions made to the system. It is important for both employers and employees to understand these employment terms and conditions to ensure that workers are being treated fairly and in accordance with the law.