This Agreement covers the work of Efling members employed in restaurants, hotels, service centres, simple eateries, and recreation companies and similar work.

1.2.1 - Wage bracket 6

1.2.2 - Starting wages and wages for workers under 18 years

1.2.3 - Certificate of work experience

1.2.4 - Appointment to managerial positions

1.2.5 - Scope of work for doormen

1.2.6 - Employee interviews

1.2.7 - Assessment of competence

1.3.1 - Wage amendments

1.3.2 - Wage Rates

1.3.3 - Wage-related items

1.3.4 - Wage rate increases

1.4.1 - December bonus

1.4.2 - Holiday bonus kr. 58.000 á orlofsárinu sem hefst 1. maí 2024

1.4.3 - Absence due to maternity/paternity leave or when a woman must stop working during pregnancy for safety reasons.

An employee must provide proof of professional experience upon request.

1.5.1 - Seniority based on work experience in the same industry shall be assessed according to verified information on prior work. In general occupations,

1.5.2 - Assessment of seniority

1.5.3 - On rights accrued through work abroad, see Article 13.4.3.

Daytime hours wages can be calculated by dividing monthly wages by 172.

1.7.1 - Overtime is payable on top of hourly wages, which corresponds to 1.0385% of monthly wages for daytime work.

1.7.2 - Overtime on major public holidays, pursuant to Article 2.3.1. is payable on top of hourly wages, which corresponds to 1.375% of monthly wages for daytime work. This does not apply to regular work of shift workers, where winter holidays are granted pursuant to Art. 3.4. for work on the days in question.

1.7.3 - Overtime workers who do not receive special overtime pay pursuant to Article

Workers receive pay for at least four hours if summoned to work by emergency call.

If an employee has worked for the same employer or in the same industry continuously for one month or more, the employee shall be paid full monthly wages such that he/she receives payment for contractual holidays falling on Mondays through Fridays.

1.9.1 - One month of continuous work refers to work performed under the same employer or in the same industry on the basis of full day work/shift work for one month. Absences due to illness, accidents, holidays, strikes or lockouts are equivalent to full work.

1.9.1 - upon entering regular work, cf. Article 1.9.2.

1.10.1 - Those who are called to work on a non-regular basis (i.e. do not have work obligations) shall receive hourly pay pursuant to wage bracket 6 based on seniority and accrued rights at the same employer.

1.11.1 - Wages shall be paid on a monthly basis after the first business day of the following month so that when fixed monthly wages are paid e.g. for January, they are paid from the 1st to the 31st of the month and payment shall be made on the first business day in February. Overtime, shift premiums and other payments for the period from

1.11.5 - Employee shall have the option of accessing time records from as far back as 12 months. Any changes to the record shall be made available and visible to the employee.

Should a restaurant owner and his/her staff agree to streamline and adopt a work incentive pay system, the labour union in question must be allowed to monitor this from the start.

1.13.1 - Housekeepers are not obliged to perform large-scale cleaning operations on the ceilings of guest quarters.

If an employee is hired for a period longer than one month and for more than eight hours per week on average, a written employment contract shall be made upon hiring or no later than month after starting work or employment confirmed in writing. Should an employee quit before the month period ends without a written employment contract having been made or employment confirmed in writing, such confirmation shall be provided upon termination of work. Employee contracts shall be prepared in duplicate and the employee keeps one copy. An employment contract may be sent to an employee electronically if it is confirmed by both parties.

1.14.1 - Changes to terms of employment beyond those due to law or collective agreements shall be confirmed in the same manner no later than one month after said changes are implemented.

1.14.2 - Provisions of Articles 1.14.1. and 1.14.2. do not apply when hiring for incidental work, except for where there are objective reasons.

1.14.3 - Employers' obligation to inform - The employment contract or written confirmation of employment, i.e. a letter of employment, shall state the following at least:

1.14.4 - Identification of parties, incl. ID numbers.

1.14.5 - Workplace and employer’s address. In the absence of a fixed workplace or a location where work is generally carried out, it must be stated that the employee is hired at various workplaces.

1.14.6 - First day of work.

1.14.7 - Holiday entitlement.

1.14.8 - Termination period on the part of the employer and the employee.

1.14.9 - Monthly or weekly wages, e.g. with reference to wage rates, other payments or benefits as well as payment periods.

1.14.10 - Length of a typical work day or work week.

1.14.11 - Pension fund.

1.14.12 - Reference to the current collective agreement and the labour union concerned.

1.14.13 - Work abroad - If an employee is assigned to work in another country for one month or longer, he/she shall receive written confirmation of employment prior to departure. In addition to the information pursuant to Article 1.14.4, the following shall be stated:

1.14.14 - Estimated duration of employment abroad.

1.14.15 - Currency in which wages are paid.

1.14.16 - Compensation or benefits/privileges related to work abroad.

1.14.17 - Temporary employment

1.14.18 - Right to damages

Part of a fixed monthly salary may be paid in foreign currency, or a part of a fixed monthly salary may be tied to the exchange rate of a foreign currency by agreement between the employee and the employer. This portion of the salary shall be based on the selling rate of the currency as of the date on which the employee and employer enter into the agreement (grant date).

Fixed monthly wages shall be calculated and stated on the payslip in the following way:

1.15.1 - Fixed monthly wages in ISK on the grant date.

Provisions in employment contracts that prohibit employees from working for their employers’ competitors are non-binding if such provisions are broader than is necessary to prevent competition or if they restrict the employees’ freedom of employment in an unfair manner. In either case, such provisions must be evaluated on a case-by-case basis with consideration to all relevant factors. Competition provisions should therefore not be worded too generally.

In assessing the breadth of an employment contract’s competition provision, particularly in terms of scope of application and time limits, the following factors must be taken into consideration:

The type of work the employee in question performed, e.g. whether he/she is a key employee, is in direct contact with customers or bears a significant confidentiality obligation. Any knowledge or information the employee may have regarding the company’s operations or its costumers must also be considered.

1.16.1 - How fast the employee’s knowledge becomes obsolete and whether normal equality among employees is observed.

1.16.2 - That an employee's freedom of employment is not restricted in an unfair manner.

1.16.3 - That the competition provision is specific and concise with a view to protect certain competitive interests.

Should an employer request that an employee submit a certificate, e.g. criminal record or bill of health, the employee must submit the requested certificate and the employer must pay the fee for obtaining the certificate. Payment for medical certificates is covered under Article 9.4.3.

Paragraph 1 does not cover certificates which job applicants are required to submit as part of their application for employment.

Protocol on certificates accompanying applications for employment

Protocol on employment contracts

2.1.1 - For a fixed monthly salary, workers must work 40 hours every week (active working time: 37 hours and 5 minutes) and a proportionally shorter time if any of the holidays listed in 2.3.1 fall during the week. Work shall be performed between the hours of 8:00 AM to 5:00 PM five days a week.

2.1.2 - Regular part-time work

2.1.3 - Incidental work

2.2.1 - Contractual overtime begins when agreed-upon daytime work is completed, i.e. 7 hours and 25 minutes of active working hours during within the hours of 7:00 AM to 5:00 PM Monday - Friday, or 40 hours a week, cf. Articles 2.1.1. - 2.1.2.

2.2.2 - Overtime wages are paid for work in excess of 40 hours per week, work on Saturdays, Sundays and contractual holidays, and major public holiday wages are paid for work on major public holidays.

2.2.3 - Overtime wages are paid for work performed during meal and coffee breaks during daytime working hours.

Major public holidays include: New Year's Day. Good Friday. Easter Sunday.

Whitsunday.

June 17.

Christmas Eve after 12:00 PM. Christmas Day.

New Year’s Eve after 12:00 PM.

2.3.1 - Holidays in addition to major public holidays include: Maundy Thursday.

2.4.1 - Daily rest period

2.4.2 - Exceptions and the right to time off

2.4.3 - Weekly day off

2.4.4 - Postponement of weekly day off

2.4.5 - Breaks

2.4.6 - In terms of scope of application, rest periods, work breaks and more, reference is made to the ASÍ and VSÍ agreement of December 30, 1996 on certain aspects relating to the scheduling of working time, which accompanies this agreement as an attachment is considered a part of it and is identical to the ASÍ and VMS agreement. The aforementioned provisions complement Article 13 of this agreement.

2.5.1 - Every hour begun of requested overtime work is paid as a half hour, and as a full hour if an employee works longer than a half hour.

An employee who changes his/her working hours from partial to full daytime work or vice versa by request of the employer or with his/her consent shall enjoy all contractual and legally required rights in instances of accident or injury and the right to extra holiday payment from the time he/she began work, based on seniority and consistent with the amended working hours.

More information on part-time workers can be found in the agreement between ASÍ and SA on part-time work and, where applicable, in legislation on part-time workers.

Employees shall report legitimate absences with as much notice as possible.

By agreement between employee and employer, days off due to overtime work may accumulate in such a way that overtime hours and time off during daytime working periods accumulate, and the difference between daytime and overtime hourly wages are either paid with the next regular payment or accumulates as a whole and is taken during the daytime working period. The value of overtime hours worked shall be used as a basis for calculation. An agreement shall be made concerning taking time off. The right time off pursuant to the aforementioned that has not been claimed before May 1 each year or upon end of employment shall be paid out on the basis of the value of daytime working hours on the payment date. An agreement shall be made concerning taking time off and time off shall be scheduled so that it causes as little disruption as possible to company activities.

Two types of agreement are authorised:

2.8.1 - Overtime hours may accumulate and the overtime premium paid out

2.8.2 - Overtime hours may accumulate and be converted into daytime hours

Employees may be placed on on-call shifts during which they must be contactable by phone and attend to emergency calls. Unless otherwise agreed to in an employment contract, the following applies:

For every hour on an on-call shift on which the on-call employee must remain at home, he/she receives payment equal to 33%

of a daytime working hour. On public holidays and major holidays, pursuant to Article 2.3.1. and 2.3.2., the aforementioned percentage is 50%.

16.5% of daytime hourly wages are paid for on-call shifts that do not require immediate response from the employee but require that the employee be available and ready to work immediately. On public holidays and major holidays, pursuant to Article 2.3.1. and 2.3.2., the aforementioned percentage is 25%.

For emergency calls during on-call shifts, employees are paid for hours worked for a minimum of four hours, unless daytime working hours begin within two hours of the employee arriving at work. Payments for on-call shifts and overtime payments never coincide.

If an employee’s home phone or mobile phone is listed in the company’s telephone directory, the work resulting therefrom must be taken into account when determining wages.

3.1.1 - Shifts may be assigned on any day of the week. If an employee only works shifts five days of the week within the hours of 5:00 PM — 8:00 AM, the working week will only be 38 hours. Half shifts are also authorised for a working week of 20 hours (19 hours where the working week is 38 hours).

3.1.2 - A shift shall not exceed 12 hours and may be no shorter 3 hours. Every shift must be worked as a consecutive timed block and the employer is obligated to pay for the entire duration of the shift, unless the employee requests time off.

3.1.3 - Shift premium is paid up to 100% employment

3.1.4 - Shift schedule

3.1.5 - Shifts shall be organised for 4 weeks at a time and a shift schedule made available at least a week before it is to take effect.

3.1.6 - Call to extra shifts

3.2.1 - A premium is payable on that portion of a 40-hour average week of shift work that falls outside of the daytime working period:

3.2.2 - Holiday premiums

3.2.3 - Premiums on major public holidays

3.2.4 - Overtime rates

3.2.5 - For work in excess of 40 hours (38 hours if daily working hours fall between the hours of 5:00 PM and 8:00 AM) on average of shift work per week, overtime rates shall apply.

Employees are entitled to 5 minutes of refreshment break time for every hour worked and break time shall be scheduled according to agreement between employees and management.

3.4.1 - Shift workers accrue 12 winter holiday days per working year for holidays and other special days that fall on Mondays to Fridays, pursuant to Article 2.3.1. and 2.3.2.

3.4.2 - Winter holidays shall be granted during the period from October 1 to May 1. Winter holiday accrual is based on the period from October to October.

3.4.3 - By agreement between a restaurant owner and his/her employee, the employee may receive payment in lieu of the days off in question. Payment is based on 8 hours of full-time daytime work per day off. Winter holidays for temporary workers shall be settled upon end of employment.

3.4.4 - CHAPTER

Employees must be given two coffee breaks during daytime working hours, for a total of 35 minutes, which shall count towards working hours.

4.1.1 - Lunch time shall be ½ hour during the period between 11:00 AM — 2:00 PM and does not count towards working hours.

Workers who begin work during the period between 6:00 PM - 8:00 AM shall receive a coffee break corresponding to 5 min. for each hour worked. Coffee breaks must be taken every three hours and are considered working hours. (These coffee breaks apply to workers on extra shifts and hourly workers. Employees on a permanent basis take coffee breaks pursuant to Article 4.1.1.).

If meal breaks cannot be provided pursuant to Article 4.1., employees shall be paid for that time.

If an employee works overtime until 7:00 PM or later, a meal break of ½ hour shall be provided during the hours of 5:00 PM — 8:30 PM and shall be considered working hours. If an employee works during this time or part of it, he/she shall be paid for the corresponding extra working hours.

If overtime takes place at night, a meal break of ½ hour shall be provided between the hours of 3:00 AM PM and 5:00 AM. This meal break and all coffee breaks are considered working hours. If an employee works during this time, he/she receives overtime corresponding to these extra hours.

4.4.1 - Signing employees out of work during coffee or meal breaks on overtime is not authorised, with the exception of evening meal breaks. In such instances, these coffee and meal breaks shall be paid in addition to other hours worked.

The employer provides employees with food during working hours at no cost. Where hot meals are not available and/or employees work outside of typical mealtimes, they shall be provided with sandwiches and milk, coffee or tea.

The employer provides employees with food during working hours at no cost. Where hot meals are not available and/or employees work outside of typical mealtimes, they shall be provided with sandwiches and milk, coffee or tea.

4.5.1 - Work outside the workplace

4.5.2 - Travel costs

4.5.3 - Travel to and from work at night

4.5.4 - Use of own automobiles on behalf of the employer

4.5.5 - In the case of home deliveries within urban areas, the employer and the employee who offers the use of his/her vehicle are authorised to negotiate a fixed ISK amount for each delivery.

4.5.6 - Should a dispute arise concerning what is considered a normal cost, reference shall be made to the cost calculated by the Icelandic Automobile Association (FÍB) for the type of vehicle used.

4.5.7 - Daily allowance on trips abroad

4.5.8 - CHAPTER

A company agreement (workplace agreement) in the understanding of this chapter is an agreement between a company and its employees, either all or specific individuals, for the adaptation of the collective agreement to the needs of the workplace.

A company-specific agreement made on the basis of this chapter is not a collective agreement, as the Confederation of Icelandic Enterprises (SA) and labour unions are not contracting parties. Regarding the involvement of these parties in the drawing of the agreement, refer to Article 5.5.

The purpose of the company-specific component of a collective agreement is to promote cooperation between staff and management in the workplace with a view to setting the groundwork for improved terms of employment for workers through increased productivity.

The purpose is to develop collective agreements in such a way that they benefit both parties. The aim, among other things, is to shorten the work week while maintaining or increasing productivity. In doing this, the aim is to always distribute profits between workers and the company according to clear parameters.

As a rule, the company-specific component applies to all employees to whom the relevant labour union’s collective agreement applies. However, special agreements may be made in individual designated workplaces.

Negotiations regarding the company-specific component of a collective agreement are carried out under the embargo on industrial action and shall be initiated by agreement of both parties. It must be stated in writing to whom the agreement is intended to apply.

The relevant labour unions and employers’ associations shall be notified once negotiations have been decided.

It is appropriate to both parties, employees and company representatives to seek the consultancy contracting parties. Each party may decide, individually or jointly, to call upon representatives of the parties to the agreement to consult in the drafting of the agreement immediately after negotiations have been decided.

Union representatives shall represent employees in negotiations with company management. The spokesman of the union concerned is fully authorised to sit on the negotiating committee. The union representative shall be authorised to hold elections for two to five additional members of the negotiation committee, depending on the number of employees, who will form a common negotiating committee.

The union representative and other elected representatives of the negotiating committee shall be guaranteed a normal amount of time for the preparation and drafting of the agreement during working hours. Furthermore, they shall enjoy special protection in employment and it is forbidden to place them at a disadvantage because of their work on the negotiating committee. It is thus forbidden to terminate their employment on account of their work on the negotiating committee.

In workplaces where union representatives belong to two or more labour unions, they shall act jointly on behalf of employees in instances where the company-specific component of the collective agreement affects their position. In these circumstances, care should be taken to ensure that a representative for all relevant industries participate in negotiations despite the fact that the negotiating committee may expand as a result.

Where union representatives have not been appointed, the employees’ relevant labour union may hold elections for the negotiating committee.

Before drafting a company-specific agreement, management shall inform union representatives and others on the negotiating committee of the company’s standing, future prospects and personnel policy.

The union representative has the right to information regarding wage payments at the workplace he/she represents to the extent necessary to enforce provisions of the company-specific agreement.

During the duration of a company-specific agreement, union representatives shall be informed twice a year of the aforementioned items and priorities in the company’s operations. They

shall exercise discretion regarding this information to the extent that it is not open to public discussion.

Information is only required to be provided to the extent necessary for the provisions of the company-specific agreement.

An agreement made on the basis of this chapter shall be made available to the employees of the company concerned. Informing unauthorised parties of the content of the agreement is prohibited.

It is permitted by agreement within the company and between employees and the company to adapt provisions of the agreement to the needs of the workplace by making exceptions regarding the following elements, provided that an agreement is reached concerning employee remuneration.

5.7.1 - Flexible daytime working hours. Daytime working hours may be negotiated between 7:00 AM and 7:00 PM.

5.7.2 - Four-day work week. Completing a full daytime work week in four days is authorised where not prohibited by law or other agreements.

5.7.3 - Shift work. Taking up shift work with at least two weeks’ notice is permitted. The duration of the shift period must not be shorter than one month at a time.

5.7.4 - Overtime premium on daytime work base rate. A portion of the overtime premium may be transferred over to the daytime work base rate.

5.7.5 - Leave for overtime. Employees are permitted to accumulate overtime hours and instead take a corresponding number of holiday hours during weekdays outside of the company’s peak period. Overtime hours are accumulated and then paid at the daytime rate but overtime premiums are paid out.

5.7.6 - Refreshment breaks. Other arrangements for refreshment breaks than those stated in the main collective agreement may be negotiated.

5.7.7 - Holidays. A portion of the holiday may be allocated in order to cut back operations or to close on certain days outside of the company’s peak season.

5.7.8 - Work incentive pay systems. A work incentive pay system may be developed without a formal methods analysis where considered suitable by both parties.

5.7.9 - Transfer of Thursday holidays. A workplace may agree to transfer contractual days off for Ascension Day and the First Day of Summer, both of which always fall on Thursdays, to another weekday, e.g. Friday or Monday, or to merge these holidays with other employee time off.

If an agreement is reached regarding adaptation of provisions of the collective agreement to the needs of the company or any other exceptions to the agreed-upon work organisation, an agreement shall also be made regarding the employees’ share of the company’s profit resulting from these changes.

The employees’ share may come as a reduction of working hours without a corresponding reduction of income, payment of a fixed amount each month or quarter, competence premiums, percentage premium of a fixed ISK amount on top of wages, or in some other form by agreement. The agreement must clearly state what the company’s profit entails as well as how employees are compensated. Both are exceptions to the collective agreement and become void upon termination pursuant to Article 5.9.

An agreement regarding the company-specific component of the collective agreement must be in writing and submitted to all to whom the agreement is intended to apply to by ballot, organised by the relevant employee negotiating committee. An agreement is considered accepted if it receives the support of a majority of votes cast. The relevant labour union must ensure that the agreed-upon exceptions and compensation for them, evaluated comprehensively, comply with the provisions of law and the collective agreement concerning minimum wages and terms of employment. If no notification to the contrary is received within four weeks, the agreement is considered to have been accepted by both parties.

The company-specific agreement may be made temporarily for a trial period of up to six months and then finalised in light of experience during the trial period. The duration of validity is otherwise indefinite. At the end of the year, either party may request a reviewIf no agreement regarding amendments is reached within two months, either party may terminate the company-specific agreement with six months' notice

as of the end of the current month. After that time, both the agreed-upon amendments and the employees’ share of profits are void. For termination to be binding, the support of a majority of the workers concerned is required by the same form of voting employed when the agreement entered into effect. If an employer terminates the company-specific contract, wage increases stipulated in that contract shall only be retracted to the extent equivalent to the cost increase resulting from the adoption of the previous agreement provisions.

Changes in terms of employment resulting from a company-specific agreement are binding on all the employees concerned provided that they have not challenged the formal making of the agreement with company management and the employee negotiating committee prior to the vote.

The provisions of a company-specific agreement apply equally to those workers who are employed when the agreement is approved pursuant to the provisions of this chapter as well as those hired later, on the condition that they have been introduced to the agreement’s content upon employment.

On the basis of majority approval by vote, employees have the right to negotiations on the shortening of working hours to 36 working hours per week on average concurrent with the elimination of coffee breaks during daytime working hours pursuant to chapter 3 of the collective agreement. Company management may also request negotiations.

During negotiations, suggestions for the arrangement of breaks will be made with the aim of achieving reciprocal benefits and improving the utilisation of working hours where possible.

If formal coffee breaks are eliminated, profits due to improved utilisation of working hours and increased productivity are divided between the employee and the employer, and the employees’ share consists of the additional shortening of active working hours:

Additional shortening of active working hours:

If an agreement is reached concerning the elimination of coffee breaks, active working time will be 36 hours per week with no reduction of monthly wages. The shortening of active working hours may be implemented in various ways, e.g.:

5.11.1 - Taking one or more flexible rest breaks from work.

5.11.2 - Mid-day break lengthened.

5.11.3 - Shortening accumulates as holiday time or half days.

5.11.4 - Combined approach.

Shortening of working hours On the basis of majority approval by vote, employees have the right to negotiations on changes to premium payments pursuant to Article 3.2.1. in the collective agreement. Company management may also request negotiations.

In place of shift premiums pursuant to Article 3.2.1. in the collective agreement the payment will be:

Balanced shift premium on all worked hours per day up to a 100% work ratio per month, in place of a premium pursuant to Article 3.2.1. in the collective agreement. The balanced shift premium is based on average shift premium payments in the company over the past 12 months, as of the end of the month. If exceptional circumstances exist indicating that a different time reference should be applied, for example due to changes in regular opening hours, this should be done.

The average shift premium is determined by taking the total number of working hours during the period for all employees working according to the collective agreement during different peak periods.

Daytime work premium on all worked hours in the period from 8:00 – 17:00 on weekdays, whereas a shift premium other than that specified in Article 3.2.1 of the collective agreement is paid for work outside the daytime work period, as agreed between the parties. When calculating shift premium, it is assumed that the average shift premium at the time of the change will remain unchanged from what it has been for the past 12 months in the company, as of the end of the month, unless special circumstances indicate that another time reference should be used.

An example: The average shift premium is 24% in a company that does not have working hours between 24:00 – 08:00, assuming that 40% of the total working hours of employees are performed during the daytime work period, 25% in the period between17:00-24:00 on weekdays and 35% on weekends. In such a case, an election could be held where the options could, for example, be:

i. 6.25% premium would be paid in the period between 8:00 – 17:00 on weekdays and a 30% premium in the period between 17:00 – 24:00 on weekdays and 40% on weekends from 8:00 – 24:00.

ii. 13.5% premium would be paid in the period between 8:00 – 17:00 on weekdays, and a 31% premium in the period between 17:00 – 24:00 on weekdays and on weekends from 8:00 – 24:00.

It is allowed to vote for any option that results in an unchanged average shift premium.

If the criteria underlying the agreement change permanently from when the shift premium was determined, e.g. the company's regular opening hours and staffing, either party may request that the shift premium be reviewed in accordance with changed criteria, and the change shall take effect from and including the beginning of the second month after the day of the written request.

The entry into force of a company-specific agreement presupposes that representatives of the parties are offered full participation in the negotiations, are informed of the negotiations and are given the opportunity to review the documentation underlying the calculations.

The labour union shall confirm in writing that the proposal is based on correct calculations and meets the requirements according to options a or b above, and respond to a request for confirmation within 4 weeks of it being verifiably received.

If written confirmation is received or the union does not respond within the above-mentioned time limits, an election may take place. If a union rejects confirmation, it shall be accompanied by factual justification.

If there is disagreement about the above, the matter shall be referred to SA and ASÍ, who shall reach a decision within four weeks.

Labour market representatives shall be sent a copy of the outcome of the agreement.

In other respects, the entry into force and voting on an agreement shall be governed by Article 5.9.

In the event that the workplace does not come to an agreement regarding the shortening of working hours pursuant to Article 5.11., employees and employers alike are authorised to defer the dispute to the contracting parties, the relevant labour union and the Confederation of Icelandic Enterprises (SA).

Should a dispute arise within the company concerning the understanding or execution of the company-specific agreement and is not solved in negotiations between parties at the workplace, employees have the right to seek the assistance of the relevant labour union or entrust the union with its resolution.

If an agreement is not reached regarding the evaluation of the impact of termination pursuant to concluding sub-paragraph 2 of Article 5.9., either party may defer to adjudication by an independent party agreed upon by both parties. The company pays 65% of the cost and the employees pay 35%.

Company-specific agreement betweenNN ehf. and the employees of the companyThis company-specific agreement is made on the basis of chapter 5 of the collective agreement between the Icelandic Confederation of Employers and the labour union or unions concerned and applies to the company’s operations. ArticleWorking hours and refreshment breaks ArticleOther ....Place, dateOn behalf..On behalf.. of NN ehf.Company-specific agreement betweenNN ehf. and the employees of the companyThis company-specific agreement is made on the basis of chapter 5 of the collective agreement between the Icelandic Confederation of Employers and the labour union or unions concerned and applies to the company’s operations. ArticleWorking hours and refreshment breaks ArticleOther ....Place, dateOn behalf..On behalf.. of NN ehf.

5.14.1 - CHAPTER

Holidays shall be a minimum length of 24 business days. Holiday wages shall be 10.17% of all wages, whether for daytime work or overtime.

With effect from 1st May 2024 (holidays that will be taken during the holiday pay year beginning on 1st May 2025). An employee who has reached the age of 22 and has worked for 6 months at the same company shall be entitled to holiday for 25 days and to holiday pay of 10.64%.

Staff who have worked 5 years at the same company shall be entitled to a holiday of 25 working days and to holiday wages amounting to 10.64%.

With effect from 1st May 2024 (holidays that will be taken during the holiday pay year beginning on 1st May 2025). An employee who has worked for 5 years at the same company shall have a right to holiday for 26 weekdays and to a holiday pay of 11.11%.

With effect from 1st May 2025 (holidays that will be taken during the holiday pay year beginning on 1st May 2026). An employee who has worked for 5 years at the same company shall have a right to holiday for 28 weekdays and to a holiday pay of 12.07%.

In the same manner, an employee who has worked 10 years with the same company is entitled to 30 days holiday rights and 13.04% holiday pay. Holiday entitlement is calculated from the beginning of the next holiday year after an employee reaches the aforementioned duration of employment.

An employee who has received increased holiday entitlement for work at the same company obtains the same entitlement after three years at a new employer, provided that the entitlement has been verified.

Summer holiday is four weeks (20 working days) and must be granted between May 2 and September 30.

Holidays exceeding 20 days may be granted outside of the designated summer holiday period of May 2 to September 30 unless otherwise agreed. If an employee wishes to take holiday outside of the aforementioned period, the request must be granted to the extent that company operations allow.

Those employees who, by request of the employer, do not receive 20 holiday days during the summer holiday period are entitled to a 25% premium on those days remaining of the 20-day holiday entitlement.

Labour unions are authorised to negotiate with individual wage payers that holiday wages be paid immediately into employee’s special holiday bank accounts or savings accounts. Such an agreement shall ensure that the party entrusted with holiday wages pay wage earners their accrued holiday wages, i.e. principal and interest, at the start of period when the holiday is taken. A copy of such an agreement must be submitted immediately to the Ministry of Social Affairs and its termination must be reported.

In the event that a worker falls ill while on holiday domestically, in an EU country, Switzerland, the USA or Canada to the extent that he/she is not able to enjoy the holiday, he/she must notify the employer by phone, email or other verifiable means on the first day of illness unless prevented by force majeure circumstances, in which case notification must be made as soon as possible.

If the employee fulfills the notification requirement, the illness lasts longer than 72 hours, and the employee notifies the employer of the attending physician, he/she is entitled to compensatory leave for the length of time that the illness verifiably lasted. Under the aforementioned circumstances, the employee shall at all times provide proof of illness with a doctor’s note. The employer has the right to have a doctor verify that the employee fell ill on holiday. To the extent possible, compensatory leave shall be granted at the time requested by the employee during the period from May 2 to September 15, unless otherwise stated. The aforementioned rules also apply to accidents during holidays.

6.5.1 - Holidays are otherwise covered by provisions of holiday legislation in effect at any given time.

6.5.2 - Upon the death of an employee, his/her holiday entitlement shall be paid to his/her estate by deposit into his/her wage account or by other means.

6.5.3 - Pursuant to Article 7 of the Holiday Allowance Act No. 30/1987, it is forbidden to pay out holiday allowance and wages simultaneously.

6.5.2 - CHAPTER

When hiring, employers should give priority to members of the labour union concerned, provided that all employees have immediate access to the union. However, members of the union concerned undertake not to work at restaurants or hotels other than those belonging to the Icelandic Hotel and Restaurant Association (Samband veitinga- og gistihúsa), provided that the companies have notified the labour union in question of a lack of staff.

7.1.1 - CHAPTER

Workplaces shall make available to employees the safety equipment that either the Administration of Occupational Safety and Health deems necessary for the nature of the work or is specified in the collective agreement, pursuant to the Act on Working Environment, Health and Safety in Workplaces.

Employees are obliged to use the safety equipment stated in collective agreements and regulations, and supervisors and union representatives shall ensure that the proper equipment is used.

If employees do not use safety equipment provided by the workplace, dismissal from work without warning is authorised after issuing a written warning. The employees’ union representative shall ensure without delay that the reason for dismissal was made clear and he/she shall have the option of familiarising him/herself with all developments in the case. If the union representative does not agree with the reason for dismissal, he/she shall protest the decision in writing and the employee in question will not be dismissed without warning.

Violations of safety rules that jeapordise employees’ life and limb are subject to dismissal without warning if the union representative and company representative are in agreement. If the safety equipment specified in collective agreements and required by the Administration of Occupational Safety and Health is not available at the workplace, employees who do not receive such equipment are authorised to refuse to perform the work that requires the equipment. If no other jobs are available for the employee in question, he/she shall retain full wages.

8.3.1 - In the event of a dispute over this provision of the agreement, the case may be referred to the ASÍ and VSÍ standing committee.

Each employee will be assigned a locker with a lock if possible. If not, a locked receptacle shall be available where employees can store valuables.

Restrictions on work and working hours for youth are covered in chapter X. of the Act on Working Environment, Health and Safety in Workplaces No. 46/1980 and Regulation on the work of children and adolescents no. 426/1999.

When important information must be delivered to employees regarding e.g. safety matters, work arrangements, changes in the workplace or matters concerning individual employees, the employer must make an effort to have an interpreter on hand for those employees who need one.

8.7.1 - Employees are generally permitted to make comments and complaints about infringements of the law or other reprehensible conduct relating to working conditions and safety which may affect workers' health and safety.

8.7.3 - Following an employee's comment, the supervisor shall, as soon as possible, verify whether the comment is legitimate. If no action is taken, an employee can approach the manager or human resources manager (if available) for their comments.

8.7.5 - The employer shall ensure that an employee doesn’t have to pay for having made a legitimate comment about violations of work protection laws or other reprehensible conduct relating to working conditions and safety which may affect the health and safety of employees.

8.7.1 - CHAPTER

During each 12-month period, workers shall retain wages as specified below during absences due to an accident or illness:

9.1.1 - During the first year of employment with the same employer, two days’ substitute wages are paid for every month worked.

9.1.2 - Sickness entitlement is a total entitlement per 12-month period regardless of the nature of the disease.

If an employee is unable to report to work due to an accident at work or en route to or from work, as well as if an employee falls ill with an occupational disease, he/she retains his/her daytime working wages for three months in addition to the right to wages during illness.

The aforementioned right is an independent entitlement and does not impinge upon the employee’s sickness entitlement.

Icelandic Health Insurance pays a per diem allowance for these days to the employer.

Explanation:Incapacity caused by an accident may either occur immediately after an accident or later. Proof and cause are covered under general rules.Explanation:Incapacity caused by an accident may either occur immediately after an accident or later. Proof and cause are covered under general rules.

9.2.1 - In the event of an accident at work, the employer pays for transporting the employee home or to hospital and later covers the normal medical costs while he/she receives wages other than those paid by Icelandic Health Insurance. The injured employee submits receipts for out-of-pocket expenses to his/her employer and payment must be made concurrently with the payment of wages, pursuant to Article 9.4.

9.3.1 - Substitute wages are based on the wages the employee would verifiably have earned had he/she not been absent from work due to illness or accident. Not included are attendance bonuses and premium payments due to specific risk, difficulty or unsanitary conditions when performing specified duties.

9.3.2 - Daytime wages are fixed wages based on daytime work (not including bonuses or any premium payments) for full-time work of 8 hours per day or 40 hours per week.

9.4.1 - Wage payments in the event of illness or accidents shall be made in the same manner and at the same time of other wage payments, provided that a medical certificate has been submitted in time for wage calculations.

9.4.2 - In the event of a dispute concerning the employer’s obligation to pay compensation, pursuant to Article 9.2, a decision shall be made according to whether the state accident insurance deems it necessary to pay compensation for the accident.

9.4.3 - Medical certificate

9.5.1 - For the first six months with an employer, a parent is permitted to spend two days per month worked tending to a sick child under the age of 13, provided that other care arrangements are not possible. After six months of employment, the entitlement increases to 12 days per 12-month period. Parents retain their daytime wages as well as any shift premiums that may apply.

Maternity/paternity leave and parental leave is covered by Act No. 95/2000 on the subject.

Pregnant women have the right to absence from work due to necessary prenatal exams without deduction from fixed wages if such an exam must take place during working hours.

9.7.1 - Scope of application

9.7.2 - Entry into effect and expiration of insurance

9.7.3 - Index and indexation of benefits

9.7.4 - Death benefits

9.7.5 - To the surviving partner, ISK 10,762,562.

9.7.6 - Permanent disability benefits

9.7.7 - Temporary disability benefits

9.7.8 - Insurance obligation

Employees shall always be cleanly and tidily dressed. If employees are requested to wear special work , certain colours or type of clothing, the employer shall make such attire available as needed at no cost to the employees. The shall be the property of the employer and used exclusively during working hours.

In workplaces that require special work , it is forbidden to discriminate against employees on the basis of sex.

General workwear

The employer shall provide employees with smocks, protective aprons and gloves as needed.

Maintenance and cleaning

The employer shall take care of maintenance and cleaning of work , which he/she provides and is his/her property.

Doormen/Night guards

Doormen shall be provided uniforms, which are company property, and the company takes care of cleaning and maintenance of uniforms as necessary. Doormen working outside the doors of the premises shall be provided protective attire according to circumstances and weather conditions.

Night guards required to wear uniforms shall be provided with them in the same manner.

If an employer suffers verifiable damage to common essential clothing and items in the course of his/her work, such as watches, glasses etc., the employee shall be compensated according to an assessment.

The same applies if an employee suffers damage to clothing caused by chemical substances, including dust binding agents (calcium chloride).

If an employee suffers damage (loss of protective clothing, etc.) as a result of a fire in the workplace, he/she shall be compensated according to an assessment.

Employers pay into their respective labour union’s sickness benefit fund, which accounts for 1% of all employees' wages in order to cover sickness and medical expenses.

Employers pay 0.25% of the same amount to the respective union’s holiday home fund.

Labour unions are authorised to negotiate with the boards of pension funds regarding the collection of sickness pay and holiday home funds at the same time as pension fund premiums.

Employers shall pay 0.3% into the respective vocational training fund; Starfsafl — vocational training for the Icelandic Confederation of Enterprises (Samtök atvinnulífsins) and Flóabandalagið.

In other respects, refer to the agreement on vocational training matters.

The agreement on pension funds between the Icelandic Confederation of Labour (ASÍ) and Confederation of Icelandic Enterprises (SA) of May 19, 1969, with subsequent amendments, shall apply between the parties as appropriate, as shall the ASÍ and VSÍ agreement on pension matters of December 12 ,1995.

Employees pay a premium of 4% of all wages into a pension fund and the employer pays 11.5% in the same manner.

Additional contributions to pension savings

Employers pay a contribution to Virk – Vocational Rehabilitation Fund, cf. Act No. 60/2012.

Employers undertake to collect union fees from main and subsidiary unions of the respective labour union in accordance with the union bylaws, either as a percentage of the wages or a fixed fee. These dues shall be submitted to the union on a monthly basis and the deadline is the last business day of the following month. Dues may be submitted along with pension fund contributions.

There is no termination period during the first two weeks of employment.

After two weeks of continuous employment with the same employer, the termination period is: 12 calendar days.

After 3 consecutive months at the same employer, the termination period is: 1 month as of the end of the current month.

After 2 years of continuous employment at the same employer, the termination period is: 2 months as of the end of the current month

After 3 consecutive years at the same employer, the termination period is: 3 months as of the end of the current month.

Termination period is reciprocal.

The provisions of Article 13.1 fully supersede the provisions of Article 1 of Act No. 19/1979 on termination periods.

General information regarding dismissal from employment

Termination period is reciprocal. All dismissals shall be made in writing and in the same language as the employee’s employment contract.

Interview about reasons for dismissal

The employee is entitled to an interview about the end of his/her employment and the reasons for dismissal. A request for an interview shall be made within four days (i.e. 96 hours) of receiving notification of dismissal and shall take place within four days (96 hours) of the request.

Upon completion of an interview or within four days (96 hours), an employee may request written clarification of the reasons for dismissal. If the employer agrees to this request, he/she must comply within four days (96 hours).

If the employer does not agree with the employee’s request for a written explanation, the employee is entitled to

another meeting with the employer concerning reasons for dismissal in the presence of his/her union representative or other spokesman from his/her union, should the employee so wish.

Limitations on the authorisation to terminate employment pursuant to law

In terminating employment, consideration shall be made of legal provisions that limit an employer’s right to freely terminate employment, incl. provisions on union representatives and safety representatives, pregnant women and parents on maternity/paternity leave, employers who have notified of paternity/maternity leave and parental leave and employees who hold family responsibilities.

Also to be taken into consideration are the provisions of Article 4 of Act No. 80/1938 on Trade Unions and Industrial Disputes, the Act on Equal Status and Equal Rights Irrespective of Gender, the Law on Part-Time Workers, the Law on Legal Status of Employees in the Case of New Ownership of Companies and the Consultation Obligation of the Law in Mass Redundancies.

Where an employee enjoys protection against dismissal under the law, the employer is required to provide written justification of the reasons for dismissal.

Penalties

Violations of the provisions of this chapter may result in liability for damages under general tort law.

If an employee who is hired for a particular job is transferred to a new job with a lower wage rate than the job for which he/she was hired, he/she shall retain the same wage rate stated in the notice of termination, unless he/she has been notified in advance of the transfer. This does not apply to jobs paid according to varying hourly rates and employees transferred between jobs according to workplace practice and the nature of the work.

If the employee is dismissed after at least 10 years of continuous employment at the same company, the termination period is four months if the employee has reached the age of 55, 5 months if he/she has reached the age of 60 and 6 months if he/she has reached the age of 63. An employee may resign from his/her employment with three months’ notice.

Pursuant to Article 13.4, accrued rights refers to all rights related to period of service at the same employer pursuant to this agreement, incl. holiday entitlement, sickness entitlement and termination period.

The employee shall retain accrued rights if re-hired within one year. Accrued rights shall also reenter effect

after one month of employment if an employee is re-hired after more than one year but within three years.

An employee who has worked for one or more consecutive years with the same employer shall likewise have his/her accrued rights reinstated after three months of employment if re-hired after more than three years but within five years.

Accrued rights are also retained upon transfer of company ownership pursuant to the act on the legal status of employees during transfer of company ownership.

Rights accrued through work abroad

The period of service accrued by foreign employees in Iceland and Icelandic citizens who have worked abroad is transferrable with respect to the rights related to period of service guaranteed in the collective agreement, provided that the work abroad is deemed comparable.

Employees shall, upon hiring, provide proof of their period of service in the form of a certificate from their previous employer or by other equally verifiable means. If an employee cannot, upon hiring, present a certificate that satisfies the criteria pursuant to paragraphs 3 and 4, he/she may submit a new certificate within three months of hiring. Accrued rights then enter into effect as of and including the start of the following month. The employer shall verify receipt of such certificate.

Among other things, the certificate from the previous employer must specify:

Name and identity of the employee in question.

The name and identity of the company issuing the confirmation as well as phone number, e-mail address and name of the party responsible for its issue.

A description of the work that the employee in question performed.

-When the employee began work with the company in question, when his/her employment ended, and whether/when there were any interruptions to his/her employment.

Certificates shall either be in English or translated into Icelandic by a state-authorised translator.

Pursuant to the Act on Maternity/Paternity Leave and Parental Leave No. 95/2000, maternity/paternity leave shall be considered a part of the employee’s period of service when assessing work-related rights, e.g. the right to time off and extension of holidays pursuant to collective agreements, pay raises due to seniority, sickness entitlement and termination period. The same applies if a woman must stop working during pregnancy for safety reasons, cf. the regulation on measures to improve the health and safety in

Maternity/paternity leave is considered time worked when calculating holiday entitlement, i.e. the right to time off, but not when calculating holiday wages.

The agreeing parties agree that redundancies are best reserved for those employees whom the intention is to dismiss and not all employees or groups of employees. In view of this, the parties have reached the following agreement:

Scope of application

This agreement only covers the mass redundancy of permanent employees when the number of such employees to be dismissed over a 30-day period is:

At least 10 individuals in companies with 16-100 employees.

At least 10% of employees in companies with 100-300 employees.

At least 30 individuals in companies with 300 employees or more.

It is not considered a mass redundancy when employment ends according to the employment contracts made for a specific period of time or for special projects. This agreement does not apply to the dismissal of individual employees, to dismissals due to amendments to terms of employment without pending end of employment, nor to dismissal of ship crews.

Consultation

If an employer is considering a mass redundancy, he/she shall first consult the respective labour union representative in order to find ways to avoid redundancies to as great an extent as possible and to mitigate the ramifications of such redundancies. Where union representatives are not present, employers shall consult with an employee representative.

Union representatives are then entitled to information pertinent to the impending dismissals, particularly the reasons for dismissal, number of employees to be dismissed and when the dismissal is to be implemented.

Implementation of mass redundancies

If, in the opinion of the employer, mass redundancies cannot be avoided despite aiming to re-hire some employees without terminating their employment, a decision shall be made concerning those employees to be re-hired as soon as possible.

If re-hiring decisions have not been made and an employee has been notified that there is no possibility of re-hiring with at least 2/3 of the employee in question’s termination period remaining, his/her termination period is extended by one month if the termination period is three months, by three weeks if the termination period is two months, and approx. two weeks if the termination period is one month.

This provision covers employees who have accrued a termination period of at least one month.

Notwithstanding the provisions of this Article, notification of re-hiring may be conditional so that the employer may continue the operations for which the employee was hired without resulting in an extension of the termination period.

Mass redundancies are otherwise covered by the provisions of legislation on mass redundancy in effect at any given time.

Employees are authorised to elect one union representative for each workplace with 5-50 employees and two union representatives in employees number more than 50. In this regard, any company in which a group of people work together is considered a workplace. When elections end, the respective labour union appoints the representatives. In the event that an election is not possible, the respective labour union shall appoint representatives.

Three union representatives may be elected within a company if the number of members is more than 120 in the same operating unit.

In companies with more than one operating unit, or where employees generally report to work at workplaces other than the headquarters of the employer in question, the union representative shall be given the opportunity to undertake their union representative duties in all operating units. Alternatively, a greater number of union representatives may be elected to undertake such work.

Union representatives are not elected or appointed for any longer than two years at a time.

In In

Union representatives shall, by consultation with the supervisor, be permitted to spend as much time as necessary to perform the duties with which they are entrusted by the employees or the workplace in question and/or the respective labour union in their role as representative, and their wages shall not be reduced for those reasons.

If the union representative's work is such that they are unable to carry out their union representative duties during regular working hours, an agreement shall be made between the union representative and the employer on the minimum period of time that the union representative can have at their disposal to carry out this work. The agreement shall take into account the number of employees represented by the union representative, the general scope of union representative work, the distribution of operating units, shift plan and other appropriate points.

In matters of dispute, a union representative or union spokesman shall be authorised to review documents and work reports relating to the dispute. Such information shall be treated as confidential.

The union representative shall have access to a locked storage facility and a phone by consultation with the supervisor.

The union representative at each company shall be permitted to attend employee meetings at the workplace twice a year during

working hours. To the extent possible, meetings shall begin one hour before the end of daytime working hours. Meetings shall be announced in consultation with the respective labour union and company management with three days’ notice, unless the matter of the meeting is urgent and directly related to a problem at the workplace. In such cases, notification one day in advance is sufficient. Employees’ wages for the first hour of the meeting at not reduced for this reason.

In workplaces that have not appointed a union representative, a union spokesman may attend workplace employee meetings upon approval from company management. Efforts should be made to hold meetings at a time that does not disrupt company activities. The time and location of the meeting must be approved by company management before the meeting is announced.

The union representative shall present employee complaints to the supervisor or other company management before calling upon other parties.

Union representatives at the workplace shall have the option of attending courses or workshops to improve their performance in their job. For a total of one week per year, every union representative has the right to attend one or more courses/workshops organised by the labour union for the purpose of making union representatives better able to perform their duties. Those attending courses/workshops shall retain their income for daytime work for up to one week per year. In companies with more than 15 employees, union representatives shall retain their income daytime work for up to two weeks during the first year. This applies to one union representative per year in every company with 5-50 employees and two union representatives in companies with more than 50 employees.

If union representative courses are organised in such a way that the union representative's absence from work does not exceed one day each week, union representative maintain day work income and shift premium for up to ten working days each year.

If the union representative attends a full-day course, they will not be required to work that day.

During collective bargaining negotiations, members of SGS affiliate unions who have been elected to negotiation committees are permitted to attend committee meetings during working hours. The same applies to representatives at the ASÍ/SGS annual meeting and representatives on the joint ASÍ/ASG and SA committees. Care should be taken that employee absences cause as little disruption as possible to their respective companies’ activities, and the employer shall consult his/her supervisor regarding absences with as much advance notification as possible. In general, no more than 1-2 employees shall attend

from each company. Wages are not required to be paid for the time in which an employee is absent.

This agreement on workplace union representatives does not infringe upon the rights of those labour unions whose agreements already guarantee rights beyond those stated her for union representatives at workplaces.

Act No. 151/2006 on Information and Consultation in Undertakings provides for the employer’s obligation to inform and consult with employee representatives. The consultation duty applies to companies that have on average at least 50 employees, cf. SA and ASÍ’s agreement on information and consultation in companies. The law assumes that the union representative represents the employees.

14.10.1 - CHAPTER

If employees attend courses or workshops at their employer’s request, the employer pays the course/workshop fee in addition to the employee’s fixed wages if the course/workshop takes place during working hours. If a course or workshop is held outside working hours, hourly daytime wages are paid equivalent to the duration of the course or workshop.

Employees may devote up to 4 daytime working hours per year attending training courses eligible for a grant from Starfsafl, without any reduction of daytime hourly wages for a work pay given that at least half of the course/workshop hours take place in the employee’s own time. Time for course/workshop attendance shall be decided with consideration to company activities.

The agreeing parties shall each appoint three people to a committee whose function is to organise and implement vocational training that benefits this industrial sector. The committee seeks to cooperate with the Education and Training Service Centre and other education centres, institutions and ministries as appropriate and considered desirable at any given time. The committee itself establishes working procedures.

In the event of a dispute between the agreeing parties, the party that believes it has been treated unfairly shall submit a complaint to the board of the other party. They shall investigate the matters in dispute and settle them if possible. If the boards of both parties disagree on the final resolution of the dispute within one week of the complaint being submitted, the matter should be referred to a conciliation committee organised such that each party appoints one member and an alternate and the respective county magistrate appoints another, and these three people shall then try to settle the dispute. The committee must complete its work within seven days of the appointment of the third member.

The main objective of this agreement is to contribute to reducing inflation and lowering interest rates, which are of great interest to households and businesses. Furthermore, the aim of the agreement is to increase the purchasing power of workers, create predictability in the economy, reduce inflationary expectations and strengthen the competitiveness of the Icelandic economy. This agreement also provides for a productivity growth premium to all workers, based on measured productivity, and for wage rate increases on the wage rates in the collective agreements

To strengthen the criteria and objectives of the collective wage agreements, a special wage and conditions committee will take up work immediately. The committee shall consist of four representatives nominated by SA and four representatives nominated by the negotiations committees of the member associations of ASÍ that jointly negotiated the conditions of the agreement.

The task of the committee shall be to monitor the progress of economic factors that may affect the objectives of the agreement, to formally assess the criteria of the collective agreement and, where appropriate, to negotiate responses to a breach of conditions that will strengthen the criteria of the agreement and help it remain in force. The formal assessment of the conditions for agreement will take place in September 2025 and September 2026.

A position on the following conditions shall be taken in September 2025:

a) It is a condition that the 12-month inflation rate in August 2025 will not exceed 4.95%. However, this condition on pricing levels is considered to be fulfilled if inflation in the 6-month period from March to August 2025 will be 4.7% or lower based on the annual rate.

b) It is a condition that the legislative amendments promised and set out in the Government's declaration dated: 7th March 2024, have been achieved.

A position on the following conditions shall be taken in September 2026:

It is a condition that the 12-month inflation in August 2026 will not exceed 4.7%. However, this condition on pricing levels is considered to be fulfilled if inflation in the 6-month period from March to August 2026 will be 4.4% or lower based on the annual rate.

Response to breach of conditions

The wage and conditions committee shall, in deciding how to respond to deviations from contractual objectives, look at developments in economic indicators during the period of the agreement. The response should have a positive impact on the progress of the targets set by the Contracting Parties on reducing inflation, inflationary expectations, lowering key interest rates, improving workers' circumstances and improving the competitiveness of the Icelandic economy. The Committee shall evaluate the state of the economy in a comprehensive way.

The Committee may decide that wage rate increases in accordance with this Agreement may be replaced by another equally valuable response better suited to the circumstances at any given time.

If there is no agreement on a response to a breach of conditions, the party that does not wish for the agreement to remain in force shall notify of the following:

For review in September 2025. Before 16:00 hrs. on 8th October 2025 and the agreement expires on 31st October 2025.

For review in September 2026. Before 16:00 hrs. on 8th October 2026 and the agreement expires on 31st October 2026.

Wage rate increases

If the collective agreements remain in force, the Wage and Conditions Committee shall, in March 2025, 2026 and 2027, rule on a special wage rate increase, if Statistics Iceland's wage index for the general labour market shows that wages have increased more than the lowest wage rate. The relative increase of that index shall be compared to the relative increase of wage bracket no. 4 in the collective wage agreements of SGS/Efling during the same period. The wage rate increase is calculated as the full percentage of the excess increase of the above-mentioned wage rate, and all minimum wage rates of the parties' collective agreements increase by that percentage as of 1st April each year.

a) In March 2025, the wage increase and the development of the wage index in the period November 2023 – November 2024 are to be considered.

b) In March 2026, the wage increase and the development of the wage index in the period November 2024 – November 2025 are to be considered.

c) In March 2027, the wage increase and the development of the wage index in the period November 2025 – November 2026 are to be considered.

In the event of a simultaneous payment of the productivity growth premium and a wage rate increase according to this collective agreement, the minimum wage rates in collective agreements shall get the raise that is higher each time.

Productivity growth premium

If productivity increases by more than 2% in 2025 and 2026, workers will get a share of this value increase in the form of a special productivity growth premium, subject to the fulfilment of certain criteria.

Productivity growth premium and payments for the premium are explained in more detail in an attachment to this agreement.

This agreement is in force from 1 April 2024 until 1 February 2028 and then becomes void without any specific notice of termination.

Reykjavík, 7 March 2024