Holidays

• 1st January – New Year’s Day

• 1st April – Maundy Thursday

• 2nd April – Good Friday

• 4th April – Easter Sunday

• 5th April – Easter Monday

• 22nd April – First Day of Summer

• 1st May – Labour Day

• 13th May – Ascension Day

• 23rd May – Whit Sunday

• 24th May – Whit Monday

• 17th June – Icelandic Republic Day

• 2nd August – Commerce Day

• 24th December – Christmas Eve

• 25th December – Christmas Day

• 26th December – Second Day of Christmas

• 31st December – New Year’s Eve

Paid Time Off

PTO (Paid Time Off)

• Vacation/Annual Paid Leave

Two days’ holiday shall be granted for each working month during the past holiday allowance year, two weeks or more constituting one month in this respect, shorter periods not being counted. If a person is absent from work due to illness or accident while he is receiving wages, or is on holiday, this shall constitute working hours for the purpose of this article. Sundays and other public holidays shall not count as holidays in this respect, nor the first five Saturdays during holidays.

The holiday allowance year shall be reckoned from 1 May to 30 April. The minimum holiday for each year is 24 working days.

• Rollovers and payout of unused hours

• Use-it-or-lose-it policy 

The part of the holidays taken outside the holiday period shall be extended by one fourth, if the holidays are taken outside the holiday season at the request of the employer.

• PTO payout at the termination

If the contract of employment between an employee and an employer is terminated, the employer must, at the end of the period of employment, pay to the employee all his accrued holiday allowance.

Maternity Leave, Child Raising Leave, Parental Leave

Maternity Leave 

Female employees are entitled to take up to 3 months of maternity leave due to a birth, primary adoption or reception of a child in permanent foster.

An employee is permitted to start her maternity leave up to one month prior to the expected birth date, which shall be confirmed by a medical certificate.

A mother is entitled to take maternity leave for at least the first two weeks after the birth of her child.

Paternity Leave

Male employees are entitled to up to 3 months of paternity leave.

Parental Leave

In addition, the parents are entitled to a joint entitlement to an additional 3 months, which either parent may draw in its entirety or the parents may divide between them.

A parent’s right to maternity/paternity leave shall be conditional on the fact that the parent herself/himself has custody of the child, or has joint custody with the other parent at the beginning of the maternity/paternity leave.

Employees on parental leave are not entitled to payment from the maternity/paternity leave fund or other public funds.

Adoption Leave

In the case of adoption of a child, or the taking of a child into permanent foster care, the time reference shall be based on the date when the child enters the home, providing this is confirmed by the relevant child welfare committee, or other competent bodies. 

In cases where the child enters the home for a trial period before adoption or permanent foster care can proceed, the time-reference may be based on the beginning of this period, providing that the arrangement is approved by the child protection committee or other competent parties. 

If the parents have to fetch the child from another country, the maternity/paternity leave may begin at the start of the journey, providing the relevant authorities or institute have confirmed that permission has been granted for the adoption of a child. The right to maternity/paternity leave in connection with adoption or permanent foster care shall expire 24 months after the child arrives in the home.

Sick Leave

Sick Leave

The minimum rights during the first year of service with an employer are 2 days in respect of each month. After one year of employment a worker is entitled to total wages for 1 month out of every 12 months, after three years with the same employer 1 month of total wages and 1 month with day wages out of every 12 months, and finally after five years with the same employer 1 month of total wages and 2 months with day wages out of every 12 months.

Child Care Leave 

Parents are entitled to 12 days in each 12-month period for the illness of children under the age of 13.

Jury Duty Leave, and Voting Leave

Not specified by law.

Bereavement Leave

Not specified by law.

Military Leave

Not specified by law.

Please consult your local legal counsel to learn more about Iceland Leave Laws.

To learn more about laws in various countries, check out our Leave Laws page.