Remote’s guide to employing inIceland
Iceland
Make employment in Iceland easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Iceland, all in one easy-to-use platform.
Services available in this country:
Employer of Record ProductContractor Management
- Capital City
Reykjavík
- Currency
Icelandic krona (kr, ISK)
- Languages
Icelandic
- Population size
364,134
Services available in this country:
Employer of Record ProductContractor Management
Taxes in Iceland
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Iceland.
11.50% | Mandatory Pension Fund |
2.00% | Supplementary (optional) Pension Fund (the employee can elect to supplement their pension by either 2% or 4%, and the employer then is obliged to match this with 2% in either case) |
6.10% | Social security contribution (this contribution is calculation on the Gross salary + Mandatory Pension Fund + Supplementary Pension fund amounts) |
1.55% | Union fee |
0.10% | Rehabilitation Fund |
10.17% | Vacation Allowance - once annually (this value is a minimum 10.17% of annual gross salary and can go up to 13.04% of annual gross salary, depending on the employees tenure with the employer) |