Easily manage employment in

Iceland
iceland flag

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
A tall building with a clock on top.
Grow your teamTaxesTypes of leaveEmployment TerminationBenefits Guide

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)