Tips for professionals working or seeking work in Iceland
Höfundur
Katrín Björg Ríkarðsdóttir
The Icelandic labour market primarily relies on collective agreements between trade unions and employers, including the state, municipalities, and the general labour market. Viska negotiates collective agreements on behalf of its members with all these parties, and also assists self-employed members in determining benchmark rates.
Collective agreements are legally binding, and both employers and employees are required to comply with them. These agreements set standards for wages, working hours, vacation, and other important aspects to ensure fairness and equal treatment.
Discrimination against employees based on nationality in terms of hiring, promotions, salary decisions, working conditions, or terminations is prohibited by law.
Employers and trade unions must work actively to ensure equal treatment in the labour market, in line with the objectives of laws on equal treatment.
The Icelandic labour market has rules in place to protect workers’ rights. Viska recommends that you familiarize yourself with:
- Wages and employment rights
- Access to the labour market
- Work permits
- Recognition of professional qualifications
- Evaluation of foreign higher education
- Wage earners, workplace rights & pensions
- Work-life balance
- Social security and welfare
- Equal treatment on the labour market
- Language proficiency
- Professional development
Jobs in the public sector should be accessible to anyone with a valid work permit. Icelandic citizenship is not required. However, Icelandic language proficiency may be necessary, but such requirements must be reasonable and related to the job itself.
Many foreign professionals work in the private sector. Requirements for Icelandic language proficiency vary by job. If proficiency is required, it must be reasonable and related to the specific role.
It’s important to understand the significant differences between being self-employed and working as a wage earner. Icelandic laws and collective agreements guarantee various rights to wage earners that self-employed individuals do not receive. As a freelancer, you are effectively your own employer.
You must ensure that you pay government fees, including income tax, social security contributions, and pension contributions. Keep these costs in mind when pricing your services.
BHM has created a calculator to help members estimate the cost of freelance work:
Self-employment – BHMViska believes it’s important for members to find jobs that match their qualifications. Unfortunately, immigrant workers often face challenges in accessing fair opportunities on the job market.
- Expand Your Network: Build an Icelandic professional network and connect with associations or groups within your field.
- Learn Icelandic: If you don’t already speak Icelandic, consider learning it, as it can be the key to securing a job where your qualifications are fully utilized. Many courses are available both online and across the country.
- Members of Viska receive a free subscription to the app Bara tala where they can practice Icelandic whenever it suits them. Members also receive grants to take language courses of their own choice.
- Contact Recruitment Agencies: Let them know you are seeking a job. They can also guide you on creating or updating your CV.
Viska’s office is staffed with specialists who have extensive experience in collective agreements and trade union-related matters. Viska provides a wide range of services and advice regarding your wages and rights, including:
- Explaining your rights and obligations under Icelandic labour laws and agreements.
- Reviewing employment contracts.
- Checking payslips.
- Assisting with resolving disputes related to the interpretation and implementation of collective agreements.
- Three Things to Consider When Starting a New Job
- Icelandic labour law – Alþýðusamband Íslands (Icelandic Confederation of Labour)