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.
- Capital City
Reykjavík
- Currency
Icelandic krona (kr, ISK)
- Languages
Icelandic
- Population size
364,134
Facts & Stats
- Capital City
Reykjavík
- Currency
Icelandic krona (kr, ISK)
- Languages
Icelandic
- Population size
364,134
- Ease of doing business
Very easy
- Cost of living index
$$$$ (2021)
- Payroll frequency
Monthly
- VAT - standard rate
24%
- GDP - real growth rate
0.1%
Land of fire (volcanoes), ice, and everything in-between (hot springs and geysers), Iceland combines a rich cultural history with strong economic performance, driven by extensive civil liberties, a high human development index, and a market economy with a vast social welfare system.
Iceland is the world’s most peaceful nation and along with its Scandinavian neighbors, boasts impressive performance on equality, democracy, per capita wealth, and environmental sustainability.
Grow your team in Iceland with Remote
Want to hire employees in Iceland? Companies hiring in Iceland are typically required to either own a local legal entity or work with a global employment platform like Remote that can legally provide employment services in the country.
Remote can employ team members in Iceland and keep you compliant. Remote can hire, onboard, and pay your Iceland team so you don't have to set up local HR services in the region. Remote also makes it easy to pay contractors in Iceland. now to get started or talk to an expert for more details.
Risks of misclassification
Iceland, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Iceland may lead to fines and penalties for the offending company.
Employing in Iceland
Most employee entitlements are defined by collective bargaining based on the 1938 Act on Trade Unions and Industrial Disputes. With 91.8% of the workforce organized into unions, Iceland has the highest union membership rate. Overall, employees in Iceland enjoy protection against discrimination based on age, religion, sexual orientation, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Iceland.
Minimum Wage
There’s no minimum wage mandated under Icelandic law; employers and employees can enter into collective bargaining to determine wage rates as they see fit.
Payroll Cycle
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
Onboarding Time
We can help you get a new employee started in Iceland fast. The minimum onboarding time we need is only 20 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
16 Public holidays
Want to see and manage all holidays? Sign up for our free HRIS!
Effortless HR Iceland: Take the Tour
Competitive benefits package in Iceland
At Remote, we’re passionate about helping you craft the best possible employee experience for your team. We are leading the way in developing globally competitive benefits programs. This means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive, and that your company has the localized expertise needed to attract and keep the best global talent.
Our benefits packages in Iceland are tailored to fulfill the local needs of employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Fair Pricing in Iceland
Employer of Record
$599
paid annually, or $699/month paid monthly
Top features
Hire without opening a local entity
Guided onboarding
Local payroll paid on time, every time
Built-in security and compliance
Flexible, localized benefits
Offer equity incentives with tax assistance
Dedicated experts for local support
Contractor Management
$29
per contractor/month
Top features
Only pay for contractors you actively work with
Work with international contractors
Create, edit, and sign tailored, localized contracts
Approve contractor invoices with one click or auto-pay
Transparent payments with complete visibility
Payroll
$29
per employee/month
Top features
Powerful, transparent international payroll
Simple self-service platform
Personalized support from dedicated specialists
Adhere to local payroll regulations in every country
Integrated payroll, expense management, and HRIS solution
Top features
Guided onboarding and offboarding
Employee profile and document management
Contract templates and e-signing
Time off and time tracking
Expense management
Employee and manager self-serve experiencea
Mobile app