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Pay and working conditions in European countries

Iceland

Country: Iceland

No statutory minimum wage – but pay and terms may never be lower than in the collective agreements, and you get at least 24 working days of holiday a year. 85.8% of people aged 20–64 have a job (EU: 76.1%) and unemployment is 4.5%. Find out where to look, how to register and get your ID number (kennitala), and how tax works.

No statutory minimum wage. Minimum pay is negotiated for each sector by the social partners and can differ between sectors – but salaries and terms of employment may never be lower than in the collective agreements.
Working time: daytime work is usually 40 hours a week (173.33 hours a month); work beyond that is paid extra. On average you may not work more than 48 hours a week over a 4-month period. You get at least 11 hours of continuous rest a day, and a break of at least 15 minutes on days longer than 6 hours.
Overtime is paid per hour at 1.0385% of your monthly daytime wage. Shift work gets at least 33% extra from 17:00 to 24:00 on weekdays and 45% from 24:00 to 08:00.
Holidays: at least 2 working days for each month worked – 24 working days a year – with at least 14 days in the summer period (2 May–15 September). A holiday allowance of at least 10.17% of total wages is set aside whenever salary is paid.
Sick leave: at least 2 days for each month worked.
Contract: if your job lasts more than a month and you normally work more than 8 hours a week, you must get a written contract or confirmation within 2 months of starting. It refers to the collective agreement and states your pay, working hours, pension fund and notice period.

published: 2014-09-03
last modification: 2026-10-03

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Key figures: Eurostat (population on 1 January 2026; unemployment and employment rates 2025; minimum wages July 2026); for the United Kingdom – Office for National Statistics; for Liechtenstein – national statistics. Country information: EURES – Living and working conditions, public employment services and the official government websites listed under each country. Rules, thresholds and amounts can change – check the official sources before you move. Updated: October 2026.

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