Wage terms and rights

Machine operators 1

Collective wage agreement between Efling and SA (Confederation of Icelandic Enterprise) arrow_forward   Private sector SA   Machine operators 1

Minimum wages Launaflokkur 10

 Byrjunarlaun1 ár3 ár5 ár
Mánaðarlaun295.131 kr297.237 kr299.376 kr301.546 kr
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Other terms and rights

Notice period for termination

During the first two weeks of employment, there is no employment-termination notice. After two weeks of …

During the first two weeks of employment, there is no employment-termination notice.

After two weeks of consecutive employment with the same employer:   12 calendar days

After 3 months of consecutive employment with the same employer: 1 month as of the beginning of the month

After 2 years of consecutive employment with the same employer: 2 months as of the beginning of the month

After 3 years of consecutive employment with the same employer: 3 months as of the beginning of the month

Explanation: If an employee who has worked for the employer for two consecutive years is dismissed, for example on 12 March, he has both the right and the obligation to work for two months from the beginning of March / April. His last working day would therefore be 31 May.

After 10 years’ work for the same employer, the employee is entitled to, at the age of

– 55 – 4 months as of the beginning of the month.
– 60 – 5 months as of the beginning of the month.
– 63 – 6 months as of the beginning of the month.

The employee, however, may resign from work with three months’ notice.

All employment terminations must be in writing.

The employer is under obligation to pay accrued holiday entitlements. Such payments are usually paid at the end of the termination notice period. In addition, the employer is under obligation to pay holiday and December bonuses in accordance with the number of hours worked and the employment proportion during the year.

Sickness rights

During the first year of employment with the same employer: two days at replacement pay* for every month …

During the first year of employment with the same employer: two days at replacement pay* for every month of work.

After one year of continuous employment with the same employer: one month at replacement pay.

After two years of employment with the same employer: one month at replacement pay and one month at day-work pay.

After three years of employment with the same employer: one month at replacement pay and two months at day-work pay.

After five years of employment with the same employer: one month at replacement pay, one month at full day-work pay (i.e. regular day-work pay, bonus and shift differentials) and two months at regular day-work pay.

Note: After 5 years of employment at the same company, employees retain part of their sickness rights even if transferring to another company.

The right to sickness leave is based on a twelve-month period.

Wage concepts:

Replacement pay – the rate that the worker would have been paid, had he not fallen sick.

Full day-work pay – i.e. regular day-work pay, bonus and shift differentials but no overtime

Regular day work pay – the number of hours that would have been paid by daytime work, i.e. not shift differentials and overtime.

Sickness rights due to children

The first 6 months at work: 2 days for each month worked

After 6 months at work: 12 days at every 12 month period

Sickness rights due to children is for children under 13 years of age. This also applies to children under the age of 16 who need to be hospitalized for one day or more.

Vacation Rights

The minimum vacation time is 24 working days. The vacation pay is 10.17% of the employee’s …

The minimum vacation time is 24 working days. The vacation pay is 10.17% of the employee’s total wage.

  • Following 5 years’ employment in the same company or the same profession, employees’ vacation time shall be 25 days, and vacation pay shall be 10.64%.
  • Following 10 years’ employment in the same company, employees’ vacation time shall be 30 days, and vacation pay shall be 13.04%.

Vacation right is calculated from May 1st – April 30 each year. The vacation summer period is from May 2 – September 30.

Vacation rights earned because of work for the same company will be renewed after three years’ work for a new company, that this has been verified.

Major public holidays and other days off

Major public holidays New Year’s Day Good Friday Easter Sunday Whit Sunday 17 June- the national …

Major public holidays

  • New Year’s Day
  • Good Friday
  • Easter Sunday
  • Whit Sunday
  • 17 June- the national day of Iceland
  • Christmas Eve, after 12 noon
  • Christmas Day
  • New Year’s Eve, after 12 noon

All extra work on major public holidays is paid at an hourly rate which is 1.375% of
monthly pay for day work. Other rules may apply to shift workers.

Other days off

  • Maundy Thursday
  • Easter Monday
  • Ascension Day
  • First day of summer
  • 1 May
  • Whit Monday
  • Boxing Day
  • First Monday in August

All extra work on other days off is paid with overtime, 80% more than daytime or 1,3085% of the monthly pay for day work. Other rules may apply to shift workers.

Wages of young people

22 years and older: 1 year in profession 18 -21 years old: 95% af starting wages …

22 years and older: 1 year in profession

18 -21 years old: 95% af starting wages at the training time

Full starting wages are paid after 300 hours at the same employer or 500 hours in the same profession after reaching the age of 16.

17 years 89% of starting wages

16 years 84% of starting wages

15 years 71% of starting wages

14 years 62% of starting wages

The age level of employees under the age of 18 is based on the year of birth.

Minimum wages for full-time work

Minimum income (before taxes) for a full-time position, i.e. 173.33 hours per month (40 hours per week), for an employee who has reached the age of eighteen and has worked for at least six months in the same company (for a minimum, however, of 900 hours) will be:

1 April 2019 ISK 317,000 per month

1 April 2020 ISK 335,000 per month

1 January 2021 ISK 351,000 per month

1 January 2022 ISK 368,000 per month

However, the minimum income guarantee does not have to affect the minimum rate, although this could simplify the calculation of employee´s wages. As stated before, the minimum income is based on 18 years of age and six months of working experience. After these requirements have been met, the employee is entitled to receive the minimum income for full-time employment regardless of his wage rate. For example, the wage rate, monthly wages, for full-time employee is ISK 351,000. after January 1, 2021, he has turned 18 and has worked for the company for six months, his wages on the pay slip could look like this:

Monthly wages: ISK 340,000
Minimum guarantee: ISK 11,000
Total wages: ISK 351,000

It is worth noting that according to Act on part-time employees no. 10/2004, part-time employees “shall not enjoy relatively poorer terms.”

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317.000 kr. per month for full-time work

Minimum rest periods

Working hours shall be arranged in such a way that during each 24-hour period, starting from …

Working hours shall be arranged in such a way that during each 24-hour period, starting from the beginning of the working day, the employee receives at least 11 hours’ continuous rest. If possible, this daily rest period shall include the period between 23:00–6:00.

Work may not be arranged in such a way that the working period exceeds 13 hours.

If the employee is especially requested to come to work before the 11 hours of rest have been reached, the employee is entitled to additional rest of 1.5 hours for every hour by which his/her rest is reduced.

The employee shall receive at least one weekly day off; the week should begin on Monday.

December bonus

The December bonus is paid no later than 15 December each year.

Those who have been employed full-time during 1 January – 31 December each year, are entitled to the full December bonus. Alternatively, the bonus is paid in proportion to the employment proportion and length of work. The December bonus is a fixed amount; vacation time is not calculated on top of the December bonus.

A full year’s employment is 45 weeks minus vacation. Employees who have held consecutive employment with the same employer for 12 weeks over the last 12 months (as of 30 April) or are employed during the first week of December are entitled to a bonus.

December bonuses are to be settled on termination of employment.

After one year working for the same employer, absence for statutory maternal/paternal leave is considered working time when calculating December bonus.

December bonus for last year, 2020, was ISK 94.000

December bonus for next year, 2022, is ISK 98.000

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96.000 kr. Full bonus 2021 for a full time job

Holiday bonus

The bonus is paid on 1 June each year.

Those who have been employed full-time during the vacation year, 1 May – 30 April each year, are entitled to the full holiday bonus. Alternatively, the bonus is paid in proportion to the employment proportion and length of work. The holiday bonus is a fixed amount; holiday allowance is not added.

A full year’s employment is 45 weeks minus vacation. Employees who have held consecutive employment with the same employer for 12 weeks over the last 12 months (as of 30 April) or are employed during the first week of May are entitled to a bonus.

Holiday bonuses are to be settled on termination of employment.

After one year working for the same employer, absence for statutory maternal/paternal leave is considered working time when calculating holiday pay bonus.

Holiday bonus for last year, 2020, was ISK 51.000

Holiday bonus for next year, 2022, is ISK 53.000

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52.000 kr. Full bonus 2021 for full time job
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