Easily manage employment in Iceland

Employees accumulate paid time off, depending on their tenure in the same line of work.The minimum PTO entitlement is 24 weekdays annually, compensated at a rate of 10.17% of your normal wages. With five years of experience working in the same industry, you’re entitled to 25 weekdays off, paid at 10.64% of your normal wages.After five years of employment with an employer, you’re entitled to 27 weekdays, paid at an 11.59% rate. This increases to 30 weekdays, compensated at a 13.04% rate after 10 years of employment with the same employer.

Employees can take the 16 public holidays off and are entitled to 1.375% of the normal monthly wages per hour if they’re expected to work on a public holiday.

Icelandic employees are entitled to paid sick leave proportional to their tenure with an employer.During the first year of employment, an employee is entitled to two days of sick leave per month, which increases to two months of paid sick leave annually after the first year.After an employee’s fifth year, they’re entitled to four months of sick leave, capped at six months off after the 10th year.

Pregnant employees are entitled to six months of maternity leave, starting up to a month before delivery is due, and compensated at a rate of 80% of the employee’s normal wages.

Fathers are entitled to six months of paternity leave, paid at a rate equivalent to 80% of the normal wages. One month of parental leave is transferable between partners and both parents’ leave entitlements can be exercised until the newborn turns 18 months of age.In addition, parents can take up to 13 consecutive weeks of leave to care for children up to the age of eight.

- Hospitalisation leave: parents are entitled to 12 days of leave if any of their children are hospitalised.- Adoption leave: Adoptive parents can exercise the same parental leave entitlements as natural birth parents, with each partner taking up to six months of paid leave off work.