Easily manage employment in

Iceland
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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.

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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
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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 pay + Mandatory Pension Fund + Supplementary Pension fund amounts)
1.55%Union fee
0.10%Rehabilitation Fund
10.17%Holiday Allowance - once annually (this value is a minimum 10.17% of annual gross pay and can go up to 13.04% of annual gross pay, depending on the employees tenure with the employer)