{"id":5923,"date":"2024-05-06T07:35:34","date_gmt":"2024-05-06T07:35:34","guid":{"rendered":"https:\/\/icehrm.com\/explore\/?page_id=5923"},"modified":"2024-05-06T07:38:18","modified_gmt":"2024-05-06T07:38:18","slug":"hr-software-for-iceland","status":"publish","type":"page","link":"https:\/\/icehrm.com\/explore\/hr-software-for-iceland\/","title":{"rendered":"HR Software for Iceland"},"content":{"rendered":"\n<h2 class=\"has-text-align-center wp-block-heading\">HR Software for Iceland<\/h2>\n\n\n<style id=\"kt-blocks_d158f8-12\" type=\"text\/css\">@media all and (min-width: 768px){#kt-layout-id_d158f8-12 > .kt-row-column-wrap > .inner-column-1{flex:0 1 35%;-webkit-flex:0 1 35%;}#kt-layout-id_d158f8-12 > .kt-row-column-wrap > .inner-column-2{flex:0 1 30%;-webkit-flex:0 1 30%;}#kt-layout-id_d158f8-12 > .kt-row-column-wrap > .inner-column-3{flex:0 1 35%;-webkit-flex:0 1 35%;}}#kt-layout-id_d158f8-12{background-color:#fff;}#kt-layout-id_d158f8-12 > .kt-row-column-wrap{padding-top:0px;padding-bottom:0px;max-width:1140px;margin-left:auto;margin-right:auto;}<\/style>\n<div class=\"wp-block-kadence-rowlayout alignnone\"><div id=\"kt-layout-id_d158f8-12\" class=\"kt-row-layout-inner kt-row-has-bg kt-layout-id_d158f8-12\"><div class=\"kt-row-column-wrap kt-has-3-columns kt-gutter-default kt-v-gutter-default kt-row-valign-top kt-row-layout-equal kt-tab-layout-inherit kt-m-colapse-left-to-right kt-mobile-layout-row  kt-custom-first-width-35  kt-custom-second-width-30  kt-custom-third-width-35\">\n<div class=\"wp-block-kadence-column inner-column-1 kadence-column_120ed8-3a\"><div class=\"kt-inside-inner-col\"><style id=\"kt-blocks_2dce4a-d3\" type=\"text\/css\">#kt-info-box_2dce4a-d3 .kt-blocks-info-box-link-wrap {background:rgba(26, 181, 177, 1);padding:30px 30px 30px 30px;border-width:0px 0px 0px 0px;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-link-wrap:hover {border-color:rgba(238, 238, 238, 1);background:rgba(26, 181, 177, 1);}#kt-info-box_2dce4a-d3 .kt-info-svg-icon, #kt-info-box_2dce4a-d3 .kt-blocks-info-box-number {font-size:120px;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-media {color:#fff;background:transparent;border-color:#1ab5b1;border-width:4px 4px 4px 4px;padding:16px 16px 16px 16px;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-media-container {margin:0px 15px 10px 15px;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-media {color:#fff;background:transparent;border-color:#fff;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-link-wrap .kt-blocks-info-box-media {border-width:0;box-shadow: inset 0 0 0 4px #1ab5b1;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-link-wrap .kt-blocks-info-box-media:before { border-width:4px;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-link-wrap .kt-blocks-info-box-media:after { border-width:0;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-media:after {border-right-color:#fff;border-right-width:4px;border-top-width:4px;border-bottom-width:4px;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-media:before {border-top-color:#fff;border-right-color:#fff;border-bottom-color:#fff;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-title {color:#fff;font-size:30px;line-height:36px;font-family:Spectral;font-style:normal;font-weight:500;padding:0px 0px 0px 0px;margin:5px 0px 0px 0px;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-title {color:#fff;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-text {}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-learnmore {color:#fff;background:transparent;border-color:#fff;font-size:20px;line-height:40px;font-family:Karla;font-style:normal;font-weight:400;border-width:2px 0px 0px 0px;padding:4px 12px 4px 12px;margin:10px 0px 10px 0px;}#kt-info-box_2dce4a-d3 .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-learnmore {color:#1ab5b1;background:#fff;border-color:#1ab5b1;}<\/style>\n<div id=\"kt-info-box_2dce4a-d3\" class=\"wp-block-kadence-infobox\"><a class=\"kt-blocks-info-box-link-wrap info-box-link kt-blocks-info-box-media-align-top kt-info-halign-center\" href=\"#\"><div class=\"kt-blocks-info-box-media-container\"><div class=\"kt-blocks-info-box-media kt-info-media-animate-drawborder\"><div class=\"kadence-info-box-icon-container kt-info-icon-animate-drawborder\"><div class=\"kadence-info-box-icon-inner-container\"><span style=\"display:block;justify-content:center;align-items:center\" class=\"kt-info-svg-icon kt-info-svg-icon-fas_coins\"><svg style=\"display:inline-block;vertical-align:middle\" viewBox=\"0 0 512 512\" height=\"120\" width=\"120\" fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M0 405.3V448c0 35.3 86 64 192 64s192-28.7 192-64v-42.7C342.7 434.4 267.2 448 192 448S41.3 434.4 0 405.3zM320 128c106 0 192-28.7 192-64S426 0 320 0 128 28.7 128 64s86 64 192 64zM0 300.4V352c0 35.3 86 64 192 64s192-28.7 192-64v-51.6c-41.3 34-116.9 51.6-192 51.6S41.3 334.4 0 300.4zm416 11c57.3-11.1 96-31.7 96-55.4v-42.7c-23.2 16.4-57.3 27.6-96 34.5v63.6zM192 160C86 160 0 195.8 0 240s86 80 192 80 192-35.8 192-80-86-80-192-80zm219.3 56.3c60-10.8 100.7-32 100.7-56.3v-42.7c-35.5 25.1-96.5 38.6-160.7 41.8 29.5 14.3 51.2 33.5 60 57.2z\"><\/path><\/svg><\/span><\/div><\/div><\/div><\/div><div class=\"kt-infobox-textcontent\"><h4 class=\"kt-blocks-info-box-title\">Currency<\/h4><div class=\"kt-blocks-info-box-learnmore-wrap\"><span class=\"kt-blocks-info-box-learnmore\">Icelandic kr\u00f3na ISK<\/span><\/div><\/div><\/a><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-column inner-column-2 kadence-column_d128af-66\"><div class=\"kt-inside-inner-col\"><style id=\"kt-blocks_d02190-ea\" type=\"text\/css\">#kt-info-box_d02190-ea .kt-blocks-info-box-link-wrap {background:rgba(132, 199, 137, 1);padding:30px 30px 30px 30px;border-width:0px 0px 0px 0px;}#kt-info-box_d02190-ea .kt-blocks-info-box-link-wrap:hover {border-color:rgba(238, 238, 238, 1);background:rgba(132, 199, 137, 1);}#kt-info-box_d02190-ea .kt-info-svg-icon, #kt-info-box_d02190-ea .kt-blocks-info-box-number {font-size:120px;}#kt-info-box_d02190-ea .kt-blocks-info-box-media {color:#fff;background:transparent;border-color:#84c789;border-width:4px 4px 4px 4px;padding:16px 16px 16px 16px;}#kt-info-box_d02190-ea .kt-blocks-info-box-media-container {margin:0px 15px 10px 15px;}#kt-info-box_d02190-ea .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-media {color:#fff;background:transparent;border-color:#fff;}#kt-info-box_d02190-ea .kt-blocks-info-box-link-wrap .kt-blocks-info-box-media {border-width:0;box-shadow: inset 0 0 0 4px #84c789;}#kt-info-box_d02190-ea .kt-blocks-info-box-link-wrap .kt-blocks-info-box-media:before { border-width:4px;}#kt-info-box_d02190-ea .kt-blocks-info-box-link-wrap .kt-blocks-info-box-media:after { border-width:0;}#kt-info-box_d02190-ea .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-media:after {border-right-color:#fff;border-right-width:4px;border-top-width:4px;border-bottom-width:4px;}#kt-info-box_d02190-ea .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-media:before {border-top-color:#fff;border-right-color:#fff;border-bottom-color:#fff;}#kt-info-box_d02190-ea .kt-blocks-info-box-title {color:#fff;font-size:30px;line-height:36px;font-family:Spectral;font-style:normal;font-weight:500;padding:0px 0px 0px 0px;margin:5px 0px 0px 0px;}#kt-info-box_d02190-ea .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-title {color:#fff;}#kt-info-box_d02190-ea .kt-blocks-info-box-text {}#kt-info-box_d02190-ea .kt-blocks-info-box-learnmore {color:#fff;background:transparent;border-color:#fff;font-size:20px;line-height:40px;font-family:Karla;font-style:normal;font-weight:400;border-width:2px 0px 0px 0px;padding:4px 12px 4px 12px;margin:10px 0px 10px 0px;}#kt-info-box_d02190-ea .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-learnmore {color:#84c789;background:#fff;border-color:#84c789;}<\/style>\n<div id=\"kt-info-box_d02190-ea\" class=\"wp-block-kadence-infobox\"><a class=\"kt-blocks-info-box-link-wrap info-box-link kt-blocks-info-box-media-align-top kt-info-halign-center\" href=\"#\"><div class=\"kt-blocks-info-box-media-container\"><div class=\"kt-blocks-info-box-media kt-info-media-animate-drawborder\"><div class=\"kadence-info-box-icon-container kt-info-icon-animate-drawborder\"><div class=\"kadence-info-box-icon-inner-container\"><span style=\"display:block;justify-content:center;align-items:center\" class=\"kt-info-svg-icon kt-info-svg-icon-fe_mapPin\"><svg style=\"display:inline-block;vertical-align:middle\" viewBox=\"0 0 24 24\" height=\"120\" width=\"120\" fill=\"none\" stroke=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" stroke-width=\"1\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><path d=\"M21 10c0 7-9 13-9 13s-9-6-9-13a9 9 0 0 1 18 0z\"><\/path><circle cx=\"12\" cy=\"10\" r=\"3\"><\/circle><\/svg><\/span><\/div><\/div><\/div><\/div><div class=\"kt-infobox-textcontent\"><h4 class=\"kt-blocks-info-box-title\">Capital<\/h4><div class=\"kt-blocks-info-box-learnmore-wrap\"><span class=\"kt-blocks-info-box-learnmore\">Reykjav\u00edk<\/span><\/div><\/div><\/a><\/div>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-kadence-column inner-column-3 kadence-column_3a77e3-96\"><div class=\"kt-inside-inner-col\"><style id=\"kt-blocks_d8d779-9c\" type=\"text\/css\">#kt-info-box_d8d779-9c .kt-blocks-info-box-link-wrap {background:rgba(134, 215, 215, 1);padding:30px 30px 30px 30px;border-width:0px 0px 0px 0px;}#kt-info-box_d8d779-9c .kt-blocks-info-box-link-wrap:hover {border-color:rgba(238, 238, 238, 1);background:rgba(134, 215, 215, 1);}#kt-info-box_d8d779-9c .kt-info-svg-icon, #kt-info-box_d8d779-9c .kt-blocks-info-box-number {font-size:120px;}#kt-info-box_d8d779-9c .kt-blocks-info-box-media {color:#fff;background:transparent;border-color:#86d7d7;border-width:4px 4px 4px 4px;padding:16px 16px 16px 16px;}#kt-info-box_d8d779-9c .kt-blocks-info-box-media-container {margin:0px 15px 10px 15px;}#kt-info-box_d8d779-9c .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-media {color:#fff;background:transparent;border-color:#fff;}#kt-info-box_d8d779-9c .kt-blocks-info-box-link-wrap .kt-blocks-info-box-media {border-width:0;box-shadow: inset 0 0 0 4px #86d7d7;}#kt-info-box_d8d779-9c .kt-blocks-info-box-link-wrap .kt-blocks-info-box-media:before { border-width:4px;}#kt-info-box_d8d779-9c .kt-blocks-info-box-link-wrap .kt-blocks-info-box-media:after { border-width:0;}#kt-info-box_d8d779-9c .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-media:after {border-right-color:#fff;border-right-width:4px;border-top-width:4px;border-bottom-width:4px;}#kt-info-box_d8d779-9c .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-media:before {border-top-color:#fff;border-right-color:#fff;border-bottom-color:#fff;}#kt-info-box_d8d779-9c .kt-blocks-info-box-title {color:#fff;font-size:30px;line-height:36px;font-family:Spectral;font-style:normal;font-weight:500;padding:0px 0px 0px 0px;margin:5px 0px 0px 0px;}#kt-info-box_d8d779-9c .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-title {color:#fff;}#kt-info-box_d8d779-9c .kt-blocks-info-box-text {}#kt-info-box_d8d779-9c .kt-blocks-info-box-learnmore {color:#fff;background:transparent;border-color:#fff;font-size:20px;line-height:40px;font-family:Karla;font-style:normal;font-weight:400;border-width:2px 0px 0px 0px;padding:4px 12px 4px 12px;margin:10px 0px 10px 0px;}#kt-info-box_d8d779-9c .kt-blocks-info-box-link-wrap:hover .kt-blocks-info-box-learnmore {color:#86d7d7;background:#fff;border-color:#86d7d7;}<\/style>\n<div id=\"kt-info-box_d8d779-9c\" class=\"wp-block-kadence-infobox\"><a class=\"kt-blocks-info-box-link-wrap info-box-link kt-blocks-info-box-media-align-top kt-info-halign-center\" href=\"#\"><div class=\"kt-blocks-info-box-media-container\"><div class=\"kt-blocks-info-box-media kt-info-media-animate-drawborder\"><div class=\"kadence-info-box-icon-container kt-info-icon-animate-drawborder\"><div class=\"kadence-info-box-icon-inner-container\"><span style=\"display:block;justify-content:center;align-items:center\" class=\"kt-info-svg-icon kt-info-svg-icon-fas_language\"><svg style=\"display:inline-block;vertical-align:middle\" viewBox=\"0 0 640 512\" height=\"120\" width=\"120\" fill=\"currentColor\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M304 416H24c-13.255 0-24-10.745-24-24V120c0-13.255 10.745-24 24-24h280v320zm-120.676-72.622A12 12 0 0 0 194.839 352h22.863c8.22 0 14.007-8.078 11.362-15.861L171.61 167.085a12 12 0 0 0-11.362-8.139h-32.489a12.001 12.001 0 0 0-11.362 8.139L58.942 336.139C56.297 343.922 62.084 352 70.304 352h22.805a12 12 0 0 0 11.535-8.693l9.118-31.807h60.211l9.351 31.878zm-39.051-140.42s4.32 21.061 7.83 33.21l10.8 37.531h-38.07l11.07-37.531c3.51-12.15 7.83-33.21 7.83-33.21h.54zM616 416H336V96h280c13.255 0 24 10.745 24 24v272c0 13.255-10.745 24-24 24zm-36-228h-64v-16c0-6.627-5.373-12-12-12h-16c-6.627 0-12 5.373-12 12v16h-64c-6.627 0-12 5.373-12 12v16c0 6.627 5.373 12 12 12h114.106c-6.263 14.299-16.518 28.972-30.023 43.206-6.56-6.898-12.397-13.91-17.365-20.933-3.639-5.144-10.585-6.675-15.995-3.446l-7.28 4.346-6.498 3.879c-5.956 3.556-7.693 11.421-3.735 17.117 6.065 8.729 13.098 17.336 20.984 25.726-8.122 6.226-16.841 12.244-26.103 17.964-5.521 3.41-7.381 10.556-4.162 16.19l7.941 13.896c3.362 5.883 10.935 7.826 16.706 4.276 12.732-7.831 24.571-16.175 35.443-24.891 10.917 8.761 22.766 17.102 35.396 24.881 5.774 3.556 13.353 1.618 16.717-4.27l7.944-13.903c3.213-5.623 1.37-12.76-4.135-16.171a312.737 312.737 0 0 1-26.06-18.019c21.024-22.425 35.768-46.289 42.713-69.85H580c6.627 0 12-5.373 12-12v-16c0-6.625-5.373-11.998-12-11.998z\"><\/path><\/svg><\/span><\/div><\/div><\/div><\/div><div class=\"kt-infobox-textcontent\"><h4 class=\"kt-blocks-info-box-title\">Language<\/h4><div class=\"kt-blocks-info-box-learnmore-wrap\"><span class=\"kt-blocks-info-box-learnmore\">Icelandic<\/span><\/div><\/div><\/a><\/div>\n<\/div><\/div>\n<\/div><\/div><\/div>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">Leave Policy<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Maternity Leave<\/h3>\n\n\n\n<p>Pregnant employees who have worked for six months are entitled to six months of paid leave. One month can be transferred between parents.<\/p>\n\n\n\n<p>Social Security covers 80% of the employee&#8217;s salary up to an amount of ISK 600,000 per month (before taxes), and Social Security is responsible for this salary.<\/p>\n\n\n\n<p>The employee can extend this leave for another 3 months, which are unpaid.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><a href=\"https:\/\/icehrm.com\/leave-management\">You can use the leave module in IceHrm to manage maternity leave in Iceland<\/a>.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Paternity Leave<\/h3>\n\n\n\n<p>Employees who have worked for six months are entitled to six months of paid leave. One month can be transferred between parents.<\/p>\n\n\n\n<p>Social Security covers 80% of the employee&#8217;s salary up to an amount of ISK 600,000 per month (before taxes), and Social Security is responsible for this salary.<\/p>\n\n\n\n<p>The employee can extend this leave for another 3 months, which are unpaid.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Parental Leave<\/h3>\n\n\n\n<p>Employees are entitled to unpaid leave from work for up to 13 consecutive weeks to care for a child up to the age of 8.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sick Leave<\/h3>\n\n\n\n<p>Employees are entitled to 2 days of sick leave per month, 24 days per year. The first 2 days per month are paid 100% by the employer. After the first 2 days, the amount of compensation and the duration of the vacation depend on the union chosen by the employee.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">Pay &amp; Tax<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Minimum Wage Requirements<\/h3>\n\n\n\n<p>In Iceland, the applicable minimum wage is very complex. There is no national minimum wage by law. Instead, the minimum wage is determined by the union to which an employee belongs. Trade unions set the minimum wage based on the age of the worker and the type of job.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Individual Income Tax<\/h3>\n\n\n\n<p>The individual income tax ranges from 31.48% to 46.28%. Income tax is calculated according to a progressive rate. Several additional factors can affect overall rates, such as: B. the household status and the number of children.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Gross Annual Income<\/th><th>Tax Rate (%)<\/th><\/tr><\/thead><tbody><tr><td>ISK 0 \u2013446 ,136<\/td><td>31.48%<\/td><\/tr><tr><td>ISK 446,137 &#8211; 1,252,501<\/td><td>37.98%<\/td><\/tr><tr><td>Over ISK 1,252,501<\/td><td>46.28%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Payroll Cost<\/h3>\n\n\n\n<p>The cost to the employer is approximately 22.07% of the employee&#8217;s salary.<\/p>\n\n\n\n<ul>\n<li>Provident Fund &#8211; 11.5%<\/li>\n\n\n\n<li>Pension Fund &#8211; 2.0%<\/li>\n\n\n\n<li>Insurance Fund &#8211; 6.92%<\/li>\n\n\n\n<li>Employee Sickness Fund &#8211; 1.0%<\/li>\n\n\n\n<li>Employee Training Fund &#8211; 0.3%<\/li>\n\n\n\n<li>Trade Union &#8211; Summer house benefits &#8211; 0.25%<\/li>\n\n\n\n<li>Recreational Fund &#8211; 0.1%<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Overtime Pay &amp; Maximum Hours<\/h3>\n\n\n\n<p>The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.<\/p>\n\n\n\n<p>Pay for overtime is mandatory and cannot be counted towards salary. Hours outside of standard working hours are considered overtime. An employee can work a maximum of 162.5 hours of overtime per month. Employees receive compensation for additional hours:<\/p>\n\n\n\n<ul>\n<li>0.875% of the hourly rate for the first 162.5 hours of overtime per month.  <\/li>\n\n\n\n<li>1.0385% of the hourly rate for the first 162.5 hours of overtime per month when working from home.<\/li>\n<\/ul>\n\n\n\n<p>Overtime pay is not mandatory for managerial positions in Iceland.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">Termination<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Termination Requirements<\/h3>\n\n\n\n<p><em>Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.<\/em><\/p>\n\n\n\n<p>Terminations in Iceland can be complex. In Iceland, employers cannot terminate at will outside of the probationary period and the termination must be for a valid reason.<\/p>\n\n\n\n<p>Compliant terminations include:<\/p>\n\n\n\n<ul>\n<li>Voluntarily by the employee<\/li>\n\n\n\n<li>By mutual agreement<\/li>\n\n\n\n<li>Unilaterally by the employer based on:\n<ul>\n<li>Probation period<\/li>\n\n\n\n<li>Objective grounds<\/li>\n\n\n\n<li>Disciplinary dismissal<\/li>\n\n\n\n<li>Performance due to unsuitability for the job<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>By the expiration of the contract<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Notice Period<\/h3>\n\n\n\n<p>The notice period is at least 7 days and is increased depending on the length of the employment relationship.<\/p>\n\n\n\n<ul>\n<li>1 week for the first 3 months of the probation period<\/li>\n\n\n\n<li>1 month following the end of probation period<\/li>\n\n\n\n<li>3 months after 6 months of employment<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Severance for Employees<\/h3>\n\n\n\n<p>The law does not provide for any specific severance pay. However, the employer must pay out all accumulated benefits, leftover PTO, Christmas bonus, summer vacation bonus, etc.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">Statutory Time Off<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Paid Time Off<\/h3>\n\n\n\n<p>For full-time employees, PTO and accumulation rates vary depending on length of employment.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Years of service<\/th><th>PTO days<\/th><th>Monthly accrual<\/th><\/tr><\/thead><tbody><tr><td>Less than 5 years<\/td><td>24<\/td><td>2 days\/month<\/td><\/tr><tr><td>5 &#8211; 10 years<\/td><td>27<\/td><td>2.25 days\/month<\/td><\/tr><tr><td>10+ years<\/td><td>30<\/td><td>2.5 days\/month<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Part-time employees are entitled to a prorated portion of PTO.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Public Holidays<\/h3>\n\n\n\n<p>Iceland celebrates 12 public holidays every year.<\/p>\n\n\n\n<p>National holidays include:<\/p>\n\n\n\n<ul>\n<li>New Year&#8217;s Day<\/li>\n\n\n\n<li>Good Friday<\/li>\n\n\n\n<li>Easter<\/li>\n\n\n\n<li>The First Day of Summer<\/li>\n\n\n\n<li>Labor Day<\/li>\n\n\n\n<li>Pentecost<\/li>\n\n\n\n<li>Fishermen&#8217;s Day<\/li>\n\n\n\n<li>Icelanders&#8217; National Holiday<\/li>\n\n\n\n<li>President&#8217;s Birthday<\/li>\n\n\n\n<li>Icelandic Language Day<\/li>\n\n\n\n<li>Sovereignty Day<\/li>\n\n\n\n<li>Christmas Day<\/li>\n<\/ul>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">Onboarding<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Onboarding<\/h3>\n\n\n\n<p>Onboarding takes 2 working days after the customer signs the SOW.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\">Additional Info<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Employment Contract Details<\/h3>\n\n\n\n<p>The contracts can be written in English or Icelandic. They must be in writing and signed by both parties. All employment contracts are subject to unionization.<\/p>\n\n\n\n<p>A contract must contain:<\/p>\n\n\n\n<ul>\n<li>Name<\/li>\n\n\n\n<li>Start date<\/li>\n\n\n\n<li>Length of the employment<\/li>\n\n\n\n<li>Job description<\/li>\n\n\n\n<li>Termination conditions.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Probation Period<\/h3>\n\n\n\n<p>The probationary period is not mandatory. The minimum duration of the probationary period is 3 months and the maximum duration is 6 months.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>HR Software for Iceland Leave Policy Maternity Leave Pregnant employees who have worked for six months are entitled to six months of paid leave. One month can be transferred between parents. Social Security covers 80% of the employee&#8217;s salary up to an amount of ISK 600,000 per month (before taxes), and Social Security is responsible&#8230;<\/p>\n","protected":false},"author":12,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"PageIceHrm.php","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","kt_blocks_editor_width":"","_kad_post_transparent":"disable","_kad_post_title":"hide","_kad_post_layout":"normal","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":true,"_kad_post_footer":true,"footnotes":""},"categories":[56],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.6.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>HR Software for Iceland - IceHrm<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/icehrm.com\/explore\/hr-software-for-iceland\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"HR Software for Iceland - IceHrm\" \/>\n<meta property=\"og:description\" content=\"HR Software for Iceland Leave Policy Maternity Leave Pregnant employees who have worked for six months are entitled to six months of paid leave. 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