Working hours for full-time employment is on average 35.5 hours per week.

Working hours for full-time employment average 35.5 hours per week (35 hours and 30 minutes), to be worked between 07:00 and 18:00, Monday to Friday inclusive, in accordance with the collective agreement between the Confederation of Icelandic Enterprise (SA) and the associations affiliated with BHM. 

The collective agreement is legally binding and applies to all companies and their employees on the general labour market, according to Article 1 of Act No 55/1980. 

Chapter 2 of the agreement governs working time. Reference is also made to Chapter 1, which sets out the key principles for determining wages.

Questions regarding sickness per diem allowance

FAQ on the Public Sector Relief Fund's sickness per diem allowance

FAQ on Private Sector Relief Fund's sickness per diem allowance

Wages in the public sector are determined through collective bargaining, while market wages typically dictate pay rates in the general labour market.

The Annual Leave Act establishes both the entitlement to annual leave and the employer’s responsibility to organize it in a way that ensures employees receive adequate rest and rejuvenation.

The number of paid sick days an employee is entitled to may vary depending on the applicable collective agreement and whether the employee works in the public sector or the general labour market. 

Employees are entitled to sickness pay from their employer during a period of illness or accident. 

Law and collective agreements lay down certain rights and procedures that apply in case of termination of employment.

Icelandic labour law is influenced by international conventions relating to the labour market, in particular European labour market legislation.

Work­ing time

Working time