Living and working conditions: Iceland

Finding a job

Traineeships

Apprenticeships

Legal framework

The framework for apprenticeship positions in vocational training in secondary schools in Iceland is good. It is based on Act No 92/2008 of 12 June on Secondary Schools (see Article 28)

https://eng.menntamalaraduneyti.is/media/frettatengt2016/Thyding-log-um-framhaldsskola-juli-2016.pdf

Regulations No 840 of 28 August 2011 stipulates rules that are based on Article 28.

http://www.reglugerd.is/reglugerdir/eftir-raduneytum/menntamalaraduneyti/nr/18028

The minimum age of applicants is 16 years.

Special regulations apply to the education of healthcare professionals, e.g. regarding clinical training, see https://eng.velferdarraduneyti.is/legislation/regulations/health-professionals

There is no general legal framework for apprenticeships at university level.

Description of schemes

A traditional apprenticeship that ends with a journeyman's degree usually takes 4 years. The combination of learning at school and at the workplace (apprenticeship) is quite different between job sectors. A company that wants to take on apprentices must apply for a special permit. The Ministry of Education has appointed a committee within each business sector to review the applications and grants licenses to those companies that meet all the prescribed conditions. The schools that offer apprenticeships can provide some information about the availability of apprenticeships, but it depends a lot on the profession and the economic situation. Each school administers their students' apprenticeship contracts. The Technical School in Reykjavík (http://en.tskoli.is) offers the largest selection of vocational courses in Iceland.

Apprentices can receive wages in accordance with the special rate for apprentices according to general collective agreements, see http://www.samidn.is (Federation of Trade Unions).

Apprenticeships at university level are usually based on bilateral agreements between a university or department within a university and a company, organisation or any kind of organisation. There are no general rules for it, and as a result, their organisation and length can vary.

Eligibility

Citizens of EEA countries can apply for an apprenticeship in Iceland, provided they meet the required conditions, e.g. regarding language skills. Teaching in most vocational schools is conducted in Icelandic.

Citizens within the EEA who are doing an apprenticeship in another EEA country can get an apprentice position within an Icelandic company if the company in question meets the school's requirements. There are several examples of such bilateral agreements between Icelandic employers and vocational schools in other countries within the EEA.

Moving to another Member State

The free movement of goods is one of the cornerstones of the European Single Market.

The removal of national barriers to the free movement of goods within the EU is one of the principles enshrined in the EU Treaties. From a traditionally protectionist starting point, the countries of the EU have continuously been lifting restrictions to form a ‘common’ or single market. This commitment to create a European trading area without frontiers has led to the creation of more wealth and new jobs, and has globally established the EU as a world trading player alongside the United States and Japan.

Despite Europe’s commitment to breaking down all internal trade barriers, not all sectors of the economy have been harmonised. The European Union decided to regulate at a European level sectors which might impose a higher risk for Europe’s citizens – such as pharmaceuticals or construction products. The majority of products (considered a ‘lower risk’) are subject to the application of the so-called principle of mutual recognition, which means that essentially every product legally manufactured or marketed in one of the Member States can be freely moved and traded within the EU internal market.

Limits to the free movement of goods

The EU Treaty gives Member States the right to set limits to the free movement of goods when there is a specific common interest such as protection of the environment, citizens’ health, or public policy, to name a few. This means for example that if the import of a product is seen by a Member State’s national authorities as a potential threat to public health, public morality or public policy, it can deny or restrict access to its market. Examples of such products are genetically modified food or certain energy drinks.

Even though there are generally no limitations for the purchase of goods in another Member State, as long as they are for personal use, there is a series of European restrictions for specific categories of products, such as alcohol and tobacco.

Free movement of capital

Another essential condition for the functioning of the internal market is the free movement of capital. It is one of the four basic freedoms guaranteed by EU legislation and represents the basis of the integration of European financial markets. Europeans can now manage and invest their money in any EU Member State.

The liberalisation of capital markets has marked a crucial point in the process of economic and monetary integration in the EU. It was the first step towards the establishment of our European Economic and Monetary Union (EMU) and the common currency, the Euro.

Advantage

The principle of the free movement of capital not only increases the efficiency of financial markets within the Union, it also brings a series of advantages to EU citizens. Individuals can carry out a broad number of financial operations within the EU without major restrictions. For instance, individuals with few restrictions can

easily open a bank account,
buy shares
invest, or
purchase real estate

in another Member State. EU Companies can invest in, own and manage other European enterprises.

Exceptions

Certain exceptions to this principle apply both within the Member States and with third countries. They are mainly related to taxation, prudential supervision, public policy considerations, money laundering and financial sanctions agreed under the EU Common Foreign and Security Policy.

The European Commission is continuing to work on the completion of the free market for financial services, by implementing new strategies for financial integration in order to make it even easier for citizens and companies to manage their money within the EU.

The implementation of the principle of free movement of people, is one of the cornerstones of our European construction, has meant the introduction a series of practical rules to ensure that citizens can travel freely and easily to any Member State of the European Union. Travelling across the EU with one’s car has become a lot less problematic. The European Commission has set a series of common regulations governing the mutual recognition of driving licences, the validity of car insurance, and the possibility of registering your car in a host country.

Your driving licence in the EU

The EU has introduced a harmonised licence model and further minimum requirements for obtaining a licence. This should help to keep unsafe drivers off Europe's roads - wherever they take their driving test.

Since 19 January 2013, all driving licences issued by EU countries have the same look and feel. The licences are printed on a piece of plastic that has the size and shape of a credit card.

Harmonised administrative validity periods for the driving licence document have been introduced which are between 10 and 15 years for motorcycles and passenger cars. This enables the authorities to regularly update the driving licence document with new security features that will make it harder to forge or tamper - so unqualified or banned drivers will find it harder to fool the authorities, in their own country or elsewhere in the EU.

The new European driving licence is also protecting vulnerable road users by introducing progressive access for motorbikes and other powered two-wheelers. The "progressive access" system means that riders will need experience with a less powerful bike before they go on to bigger machines. Mopeds will also constitute a separate category called AM.

You must apply for a licence in the country where you usually or regularly live. As a general rule, it is the country where you live for at least 185 days each calendar year because of personal or work-related ties.

If you have personal/work-related ties in 2 or more EU countries, your place of usual residence is the place where you have personal ties, as long as you go back regularly. You don't need to meet this last condition if you are living in an EU country to carry out a task for a fixed period of time.

If you move to another EU country to go to college or university, your place of usual residence doesn't change. However, you can apply for a driving licence in your host country if you can prove you have been studying there for at least 6 months.

Registering your car in the host country

If you move permanently to another EU country and take your car with you, you should register your car and pay car-related taxes in your new country.

There are no common EU rules on vehicle registration and related taxes. Some countries have tax-exemption rules for vehicle registration when moving with the car from one country to another permanently.

To benefit from a tax exemption, you must check the applicable deadlines and conditions in the country you wish to move to.

Check the exact rules and deadlines with the national authorities: https://europa.eu/youreurope/citizens/vehicles/registration/registration-abroad/index_en.htm

Car Insurance

EU citizens can insure their car in any EU country, as long as the chosen insurance company is licensed by the host national authority to issue the relevant insurance policies. A company based in another Member State is entitled sell a policy for compulsory civil liability only if certain conditions are met. Insurance will be valid throughout the Union, no matter where the accident takes place.

Taxation

Value Added Tax or VAT on motor vehicles is ordinarily paid in the country where the car is purchased, although under certain conditions, VAT is paid in the country of destination.
More information on the rules which apply when a vehicle is acquired in one EU Member State and is intended to be registered in another EU Member State is available on this link https://europa.eu/youreurope/citizens/vehicles/registration/taxes-abroad/index_en.htm.

What should you bring with you?

A valid passport or other valid personal identification from your home country, which is valid for at least 3 months beyond the period of your planned stay.

Diplomas and certificates to verify your formal education and/or vocational training. It is a good idea to translate your documents into English and/or Icelandic before coming to Iceland.

Contact the local social security service and tax office to find out how working in Iceland will affect your status regarding taxes and benefits. Be sure to familiarise yourself with the appropriate forms and confirmations.

It is good to find out about the certificate E-104 from the last country of residence which confirms the insurance period in the general health insurance system in the home country. You are automatically covered by health insurance in Iceland 6 months after registration of legal residence, but immediately if you return the E-104 certificate together with registration of legal residence.

The European Health Insurance Card.

Sufficient funds for subsistence until the first salary payment, e.g. for rent, security deposit due to rent, food, payment for handling documents and for flight home, if you change your mind.

The U1 certificate issued in your home country if you become unemployed after working in Iceland for some time.

What should I do first after arriving in Iceland?

You can contact EURES in Iceland to get information about job searching in Iceland. You can send an email to the email address: euresvmst [dot] is (eures[at]vmst[dot]is).

If you have a job and/or accommodation when you arrive in Iceland, it is important to immediately go to the National Registry and apply for a social security number and legal residence registration, or just a social security number.

Links:

Title/Name	URL
Vinnumálastofnun (The National Employment Agency)	https://vinnumalastofnun.is/en
Tax office	https://www.rsk.is/english/individuals
Fjölmenningarsetur (Multicultural and Information Centre)	http://www.mcc.is
Sjúkratryggingar Íslands (Icelandic Health Insurance)	http://www.sjukra.is/english/workers
Registers Iceland	skra.is
European Health Insurance Cards	European Health Insurance Card – Employment, Social Affairs & Inclusion – European Commission (europa.eu)

Working conditions

Quality of work and employment - a vital issue, with a strong economic and humanitarian impact

Good working conditions are important for the well-being of European workers. They

contribute to the physical and psychological welfare of Europeans, and
contribute to the economic performance of the EU.

From a humanitarian point of view, the quality of working environment has a strong influence on the overall work and life satisfaction of European workers.

From an economic point of view, high-quality job conditions are a driving force of economic growth and a foundation for the competitive position of the European Union. A high level of work satisfaction is an important factor for achieving high productivity of the EU economy.

It is therefore a core issue for the European Union to promote the creation and maintenance of a sustainable and pleasant working environment – one that promotes health and well-being of European employees and creates a good balance between work and non-work time.

Improving working conditions in Europe: an important objective for the European Union.

Ensuring favourable working conditions for European citizens is a priority for the EU. The European Union is therefore working together with national governments to ensure a pleasant and secure workplace environment. Support to Member States is provided through:

the exchange of experience between different countries and common actions
the establishment of the minimum requirements on working conditions and health and safety at work, to be applied all over the European Union

Criteria for quality of work and employment

In order to achieve sustainable working conditions, it is important to determine the main characteristics of a favourable working environment and thus the criteria for the quality of working conditions.

The European Foundation for the Improvement of Living and Working Conditions (Eurofound) in Dublin, is an EU agency that provides information, advice and expertise on, as the name implies, living and working conditions. This agency has established several criteria for job and employment quality, which include:

health and well-being at the workplace – this is a vital criteria, since good working conditions suppose the prevention of health problems at the work place, decreasing the exposure to risk and improving work organisation
reconciliation of working and non-working life – citizens should be given the chance to find a balance between the time spent at work and at leisure
skills development – a quality job is one that gives possibilities for training, improvement and career opportunities

The work of Eurofound contributes to the planning and design of better living and working conditions in Europe.

Health and safety at work

The European Commission has undertaken a wide scope of activities to promote a healthy working environment in the EU Member States. Amongst others, it developed a Community Strategy for Health and Safety at Work for the period 2021-2027. This strategy was set up with the help of national authorities, social partners and NGOs. It addresses the changing needs in worker’s protection brought by the digital and green transitions, new forms of work and the COVID-19 pandemic. At the same time, the framework will continue to address traditional occupational safety and health risks, such as risks of accidents at work or exposure to hazardous chemicals.

The Community policy on health and safety at work aims at a long-lasting improvement of well-being of EU workers. It takes into account the physical, moral and social dimensions of working conditions, as well as the new challenges brought up by the enlargement of the European Union towards countries from Central and Eastern Europe. The introduction of EU standards for health and safety at the workplace, has contributed a lot to the improvement of the situation of workers in these countries.

Improving working conditions by setting minimum requirements common to all EU countries

Improving living and working conditions in the EU Member States depends largely on the establishment of common labour standards. EU labour laws and regulations have set the minimum requirements for a sustainable working environment and are now applied in all Member States. The improvement of these standards has strengthened workers’ rights and is one of the main achievements of the EU’s social policy.

The importance of transparency and mutual recognition of diplomas as a crucial complement to the free movement of workers

The possibility of obtaining recognition of one’s qualifications and competences can play a vital role in the decision to take up work in another EU country. It is therefore necessary to develop a European system that will guarantee the mutual acceptance of professional competences in different Member States. Only such a system will ensure that a lack of recognition of professional qualifications will not become an obstacle to workers’ mobility within the EU.

Main principles for the recognition of professional qualifications in the EU

As a basic principle, any EU citizen should be able to freely practice their profession in any Member State. Unfortunately the practical implementation of this principle is often hindered by national requirements for access to certain professions in the host country.

For the purpose of overcoming these differences, the EU has set up a system for the recognition of professional qualifications. Within the terms of this system, a distinction is made between regulated professions (professions for which certain qualifications are legally required) and professions that are not legally regulated in the host Member State.

Steps towards a transparency of qualifications in Europe

The European Union has taken important steps towards the objective of achieving transparency of qualifications in Europe:

An increased co-operation in vocational education and training, with the intention to combine all instruments for transparency of certificates and diplomas, in one single, user-friendly tool. This includes, for example, the European CV or Europass Trainings.
The development of concrete actions in the field of recognition and quality in vocational education and training.

Going beyond the differences in education and training systems throughout the EU

Education and training systems in the EU Member States still show substantial differences. The last enlargements of the EU, with different educational traditions, have further increased this diversity. This calls for a need to set up common rules to guarantee recognition of competences.

In order to overcome this diversity of national qualification standards, educational methods and training structures, the European Commission has put forward a series of instruments, aimed at ensuring better transparency and recognition of qualifications both for academic and professional purposes.

The European Qualifications Framework

The European Qualifications Framework is a key priority for the European Commission in the process of recognition of professional competences. The main objective of the framework is to create links between the different national qualification systems and guarantee a smooth transfer and recognition of diplomas.

The National Academic Recognition Information Centres (NARICs)

A network of National Academic Recognition Information Centres was established in 1984 at the initiative of the European Commission. The NARICs provide advice on the academic recognition of periods of study abroad. Located in all EU Member States as well as in the countries of the European Economic Area, NARICs play a vital role the process of recognition of qualifications in the EU.

The European Credit Transfer System (ECTS)

The European Credit Transfer System aims at facilitating the recognition of periods of study abroad. Introduced in 1989, it functions by describing an education programme and attaching credits to its components. It is a key complement to the highly acclaimed student mobility programme Erasmus.

Europass

Europass is an instrument for ensuring the transparency of professional skills. It is composed of five standardised documents

a CV (Curriculum Vitae),
a cover letter editor,
certificate supplements,
diploma supplements, and
a Europass-Mobility document.

The Europass system makes skills and qualifications clearly and easily understood in the different parts of Europe. In every country of the European Union and the European Economic Area, national Europass centres have been established as the primary contact points for people seeking for information about the Europass system.

There are special provisions in the Icelandic labour protection legislation regarding of children and adolescents working under the age of 18 years. According to those provisions, a special permit from the Labour Inspectorate is required to hire children under the age of 13 to work and children under the age of 15 may only be employed for lighter work. Working hours of adolescents aged 15-18 are limited to 40 hours per week and generally it is prohibited to have adolescents working during the period from 22.00 to 06.00.

The Icelandic labour market is flexible. It is, for example, easy for employers to recruit employees and to let them go. Likewise, it is easy for people to start new jobs and resign from their jobs.

Employment contracts can either be verbal or written at the start of the employment relationship. However, according to the provisions of the collective labour agreements, a written employment contract must be made within 2 months of the employee's employment if they are employed for more than 1 month and if they work for more than 8 hours a week. Employment contracts can either be indefinite or for a certain period of time, and it is common for people to be in full-time employment, but there is also a number of people working part-time jobs.

Self-employed individuals bear the responsibility for paying taxes and expenses on their income to the Treasury. See https://www.island.is/en/business_and_inndustry/business/self_employed.

There is no specific legal definition of ‘seasonal employee" in Icelandic law. Wages and other terms of employment, which are stipulated in the collective agreements of the parties to the labour market, are minimum requirements by law and apply to all employees. Collective agreements are automatically binding for all employees and employers who work in the relevant sector and in the relevant territory according to Act No 55/1980.

Links:

Title/Name	URL
Alþýðusamband Íslands (Icelandic Confederation of Labour)	http://www.asi.is
Fjölmenningarsetur (Multicultural and Information Centre)	http://www.mcc.is
Ísland.is	https://www.island.is
Tax office	Iceland Revenue and Customs (skatturinn.is)

There are four different types of private company in Iceland:

Individual companies: are operated through the founders own name.
Private limited companies may be owned by one or more persons and must have capital of at least ISK 500 000.
Limited company is more suitable for bigger companies and therefore has stricter formalities than other types of companies.
Partnership companies are companies owned by two or more individuals or companies.

See https://www.island.is/en/business_and_inndustry/business/self_employed

A self-employed person who has residency in an EU/EEA Member State and who wants to provide services in Iceland may come to the country without a special permit and stay for up to 3 months. If the service lasts longer than 3 months, the self-employed individual must register at the National Registry. If a self-employed person has employees working for them they can move their staff here to provide the service concerned. If the employees are nationals of the EU/EEA states, they can stay here for up to 3 months without a residence permit. If they intend to stay longer than 3 months, they must also register with the National Register.

Any EU/EEA national may set up their own business in Iceland. There are numerous agencies you should contact in order to build up your business. First is the tax office, where you register your business and receive guidance on tax matters.

A company or individual who intends to send an employee(s) to Iceland for a short period of time must report this to the Directorate of Labour. See more information about listing of seconded employees here https://vinnumalastofnun.is/en/foreign-workers/foreign-service-companies-and-temporary-work-agencies/posted-workers.

Links:

Title/Name	URL
Ríkisskattstjóri (Directorate of Internal Revenue)	http://www.rsk.is
National Registry	http://www.skra.is
Ísland.is	https://www.island.is
Vinnumálastofnun (The National Employment Agency)	https://www.vinnumalastofnun.is
The rights and duties of foreign service industries	http://posting.is

The social partners negotiate wages and other issues that affect employment in collective agreements. Salaries and terms of employment must never be less than those stipulated in collective agreements. The minimum wage is therefore negotiated in each sector of the labour market by the social partners and can differ between occupational sectors. Employers must observe the minimum rates fixed in the applicable collective agreement when they negotiate contracts of employment with individual workers.

Collective agreements usually set minimum wages to those 14 years of age and older. For information on wage rates and working hours, please contact the trade union or the federation to which it belongs.

Collective agreements require that payment of wages must be accompanied by a written salary statement (pay slip). Workers are entitled to ask their union representatives to check whether their wages and deductions made by their employer have been calculated correctly.

A written pay statement must include, as a minimum, the following information:

Name and address of the employer and name of the worker.
The period of time or the work for which the worker is being paid.
The gross amount of the wages, broken into daytime work, overtime, etc.
The rate of wages to which the worker is entitled and the number of hours worked.
Deductions and the purposes for which they are made, e.g. personal income tax, pension fund contributions and trade union contributions.
Holiday pay.
Any bonus, allowance, or other payment to which the worker is entitled.
The net amount of money being paid to the worker.

Wages on the Icelandic labour market are usually paid directly into the worker’s bank account. Collective agreements usually state that wages are to be paid monthly on the first weekday after the end of the month for which the wages are being paid. Wages in some sectors are paid on a weekly or bi-weekly basis.

Links:

Title/Name	URL
Alþýðusamband Íslands (Icelandic Confederation of Labour)	http://www.asi.is
Fjölmenningarsetur (Multicultural and Information Centre)	http://www.mcc.is

In line with collective labour agreements the average maximum weekly working time over a four month reference period shall not exceed 48 hours per 7-day period, including overtime. Working time is in this context defined as active working time. Working hours must be arranged so that every 24-hour day the employee gets at least 11 hours of continuous rest. If possible, the daily rest period must be between 23.00 and 06.00. Moreover, workers are entitled to a rest break of at least 15 minutes during each working day of more than 6 hours. Coffee and meal breaks are considered to be breaks. For each 7-day period a worker is to have at least 1 day off from work, which is directly connected to the daily rest.

Night workers are those who work more than 3 hours between 23.00 and 06.00 as a regular part of their job. Employers are required to take all reasonable steps to ensure that the 'normal' hours of their night workers do not exceed 8 hours in every 24 hours.

The duration of a lunch break varies between sectors of the labour market, from 30 minutes to 1 hour, taken between 11.30 and 13.30 and is not counted as paid working time. Workers are usually entitled to two coffee breaks during daytime work and these should be taken before and after noon. The length of each coffee break ranges from 15 to 35 minutes, depending on the applicable collective agreement.

Hours of daytime work are usually defined as 40 hours per week depending on the collective agreement, divided into five 8 hour working days from Monday to Friday. Collective agreements thus define full-time work as 173.33 working hours per month (40 hours per week). Work exceeding these limits is paid as a percentage of the daytime rate and is paid as overtime. Overtime pay is due if the daily hours exceed 8 hours or if the work is done outside the limits of daytime working hours defined in collective agreements.

Wages for overtime are defined as hourly pay equalling 1.0385% of the monthly wages for daytime work. Overtime calculated in this manner on top of daytime pay is the minimum wage for work done during overtime periods.

People who do shift work receive a special supplement for work done outside of normal working hours. In general, the supplement is at least 33% for the period from 17.00 to 24.00 Monday to Friday and 45% for the period from 24.00 to 08.00 every day, including weekends.

Links:

Title/Name	URL
Alþýðusamband Íslands (Icelandic Confederation of Labour)	http://www.asi.is
Fjölmenningarsetur (Multicultural and Information Centre)	http://www.mcc.is

All employees are entitled to vacation and vacation pay, a minimum of 2 working days for each month worked in the preceding vacation year (1 May to 30 April, inclusive).

The minimum holiday for each year is therefore 24 working days.

The Act stipulates that holiday allowance is to be whenever salary is paid, at a minimum of 10.17% of total wages. That guarantees a minimum annual paid holiday of 24 working days. Holiday is to be granted during the period 2 May to 15 September each year and workers shall at all times be given the right to take at least 14 days’ holiday during the summer holiday period. The employer decides in consultation with his employees when they go on vacation during the summer vacation.

Public holidays are: New Year's Day (1 January) (major holiday), Maundy Thursday, Good Friday (major holiday), Easter Monday, First Day of Summer (First Thursday after 18 April), International Workers' Day (1 May), Ascension Day, Whitsun (major holiday), Whit Monday, Icelandic National Day (17 June) (major holiday), Tradesmen's Day (1st Monday in August), Christmas Eve from 12 noon (24 December) (major holiday), Christmas Day (25 December) (major holiday), the day after Christmas (26 December), New Year's Eve from 12 noon (31 December) (major holiday).

Overtime is paid for work on public holidays, but on major holidays a special supplement is added.

The right to sick leave and its duration varies, depending on collective agreements. For example, public employees generally have more sick leave than employees in the general market. In general, however, the employee's sickness entitlement increases the longer they work with the same employer. The minimum right is 2 days for each 1 month worked.

A parent is also entitled to 12 days in each 12-month period for the illness of children under the age of 13.

By law, all parents are entitled to maternity/paternity leave. Both parents have independent rights to maternity/paternity leave of up to 3 months after birth, and in addition they have 3 months which they can split between themselves. The total right to maternity/paternity leave after birth or adoption of a child is therefore 9 months. The right to payments for maternity/paternity benefits depends on the position of the parent in the labour market, i.e. whether they are in the labour market, are home makers or are studying.

Parents also have the right to parental leave for up to 4 months to take care of their child. The right expires when the child reaches 8 years of age. Employees on parental leave are not entitled to payment from the maternity/paternity leave fund or other public funds.

Paid study leave is not common in the private sector. However, public employees with university education are entitled to paid study leave after 4 years at the same institution, under collective agreements. The length of the leave and how it is acquired varies, according to the occupation in question.

Links:

Title/Name	URL
Alþýðusamband Íslands (Icelandic Confederation of Labour)	http://www.asi.is
Fjölmenningarsetur (Multicultural and Information Centre)	http://www.mcc.is
Parental leave	http://www.faedingarorlof.is/saekja-um-greidslur--eydublod/application-for-payments-from-the-childbirth-leave-fund

The general principle on the private labour market is that any employment contract concluded for an indefinite period of time may be terminated for any reason, by both employer and employee, subject to notice periods, based on the applicable collective agreement. However, there are some restrictions under this rule that protect, for example, pregnant women, employees on maternity/paternity leave and union representatives at their workplace.

Notice of termination must be in writing and the notice period starting from the end of the month (or week if applicable). If the worker does not receive his formal notice of dismissal at least on the last working day of the month, his notice period is automatically pushed back to the end of the next month. The length of notice periods ranges from 1 week to 6 months (3 months is common), depending on length of service and service time at the affected organisations.

The employment contract remains intact until the end of the notice period, which means that rights and obligations of both parties remain unchanged during the period. The parties can however come to an agreement to end their employment relationship immediately.

Where the worker leaves without giving the required notice, the employer may have, in certain circumstances, a right to claim damages. There are exceptions, where no notice is required – such as in the event of gross misconduct by either party, or dangerous or unsuitable working conditions.

There is no reference in the law or in collective agreements in the private sector to any special retirement age, but public servants have to retire at the age of 70. Retirement age can be said to be governed by rules relating to entitlement to old age pension. For the majority of workers, entitlement to old age pension is set at 67 years old. They can choose to start drawing a pension from a pension fund already at the age of 65 or delay it until the age of 70. Seamen are entitled to an old-age pension when they turn sixty.

All employees are obliged to pay an amount from their salary into a pension fund. Payments from a pension fund reflect the employee's contribution over the years, i.e. how long and how much the person has paid into the fund, and can therefore vary greatly. The same applies to disability pensions, but you are entitled to such pension benefits if your working capacity is reduced due to an accident or illness, where the resulting impairment is assessed to represent at least 50% permanent disability.

According to social security legislation, those who have reached the age of 67 and have lived in Iceland for at least 3 years between the ages of 16 and 67, are entitled to a pension. The entitlement is calculated in proportion to the number of years the person has lived in Iceland between the ages of 16 and 67. In order to receive full entitlement, the person must have lived in Iceland for 40 years. Payments of old-age pension from the social security are reduced due to income, e.g. wages or pension benefits from a pension fund. Those who are entitled to payments from a pension fund receive low or no payments from the social security system.

Links:

Title/Name	URL
Alþýðusamband Íslands (Icelandic Confederation of Labour)	http://www.asi.is
Tryggingastofnun (The Social Insurance Administration)	http://www.tr.is
Landssamtök lífeyrissjóða (The Icelandic Pension Funds Association)	http://ll.is

The Icelandic Education and Training Service Centre is a forum for cooperation between the social partners, municipalities and the Ministry of Finance on adult and vocational education in the Icelandic labour market, in collaboration with other educational institutions organised by the members of the organisation.

In Iceland, there are a number of lifelong learning centres that offer a variety of education opportunities for adults. They differ in structure. They are represented by municipalities, colleges, unions and companies in various ways.

Some upper secondary schools offer two types of adult education. On the one hand, there are adult classes for those who want to complete a matriculation degree to attend a university either by attending an evening school or through distance learning. The adult classes differ from regular day schools in that there are fewer lessons per credit-unit than in a regular day school, the teaching is based on the needs of adults, and students need to pay a lot more for the education than in a regular day school, or an amount equivalent to one third of the operational cost. However, some colleges offer continuing education courses in cooperation with professional organisations, unions, employers or other parties.

Trade unions offer their members a variety of continuing education options. They offer a wide range of courses in collaboration with educational institutions. Most professions in Iceland currently have access to a vocational fund. It has been agreed that employers contribute an amount to this fund that corresponds to a proportion of the employee's salary. Employees can apply for grants to attend courses, and employers or trade unions can also apply for grants to provide courses.

Links:

Title/Name	URL
Fræðslumiðstöð atvinnulífsins (The Education and Training Service Centre)	http://www.frae.is
Mímir símenntun (Centre for Lifelong Learning)	http://www.mimir.is
Símenntunarstöð Eyjafjarðar (Lifelong Learning Centre in Eyjafjörður)	http://www.simey.is

Living conditions

Quality of life – on top of the EU social policy agenda

Favourable living conditions depend on a wide range of factors, such as quality healthcare services, education and training opportunities or good transport facilities, just to name a few aspects affecting citizens’ everyday life and work. The European Union has set for itself the aim to constantly improve the quality of life in all its Member States, and to take into account the new challenges of contemporary Europe, such as socially exclude people or an aging population.

Employment in Europe

Improving employment opportunities in Europe is a key priority for the European Commission. With the prospect of tackling the problem of unemployment and increasing the mobility between jobs and regions, a wide variety of initiatives at EU level are being developed and implemented to support the European Employment strategy. These include the European Employment Services network (EURES) and the EU Skills Panorama.

Health and healthcare in the European Union

Health is a cherished value, influencing people’s daily lives and therefore an important priority for all Europeans. A healthy environment is crucial for our individual and professional development, and EU citizens are ever more demanding about health and safety at work and the provision of high quality healthcare services. They require quick and easy access to medical treatment when travelling across the European Union. EU health policies are aimed at responding to these needs.

The European Commission has developed a coordinated approach to health policy, putting into practice a series of initiatives that complement the actions of national public authorities. The Union’s common actions and objectives are included in EU health programmes and strategies.

The current EU4Health Programme (2021-2027) is the EU’s ambitious response to COVID-19. The pandemic has a major impact on patients, medical and healthcare staff, and health systems in Europe. The new EU4Health programme will go beyond crisis response to address healthcare systems’ resilience.

EU4Health, established by Regulation (EU) 2021/522, will provide funding to eligible entities, health organisations and NGOs from EU countries, or non-EU countries associated to the programme.

With EU4Health, the EU will invest €5.3 billion in current prices in actions with an EU added value, complementing EU countries’ policies and pursuing one or several of EU4Health´s objectives:

To improve and foster health in the Union
- disease prevention & health promotion
- international health initiatives & cooperation
To tackle cross-border health threats
- prevention, preparedness & response to cross-border health threats
- complementing national stockpiling of essential crisis-relevant products
- establishing a reserve of medical, healthcare & support staff
To improve medicinal products, medical devices and crisis-relevant products
- making medicinal products, medical devices and crisis-relevant products available and affordable
To strengthen health systems, their resilience and resource efficiency
- strengthening health data, digital tools & services, digital transformation of healthcare
- improving access to healthcare
- developing and implementing EU health legislation and evidence-based decision making
- integrated work among national health systems

Education in the EU

Education in Europe has both deep roots and great diversity. Already in 1976, education ministers decided to set up an information network to better understand educational policies and systems in the then nine-nation European Community. This reflected the principle that the particular character of an educational system in any one Member State ought to be fully respected, while coordinated interaction between education, training and employment systems should be improved. Eurydice, the information network on education in Europe, was formally launched in 1980.

In 1986, attention turned from information exchanges to student exchanges with the launch of the Erasmus programme, now grown into the Erasmus+programme, often cited as one of the most successful initiatives of the EU.

Transport in the EU

Transport was one of the first common policies of the then European Community. Since 1958, when the Treaty of Rome entered into force, the EU’s transport policy has focused on removing border obstacles between Member States, thereby enabling people and goods to move quickly, efficiently and cheaply.

This principle is closely connected to the EU’s central goal of a dynamic economy and cohesive society. The transport sector generates 10% of EU wealth measured by gross domestic product (GDP), equivalent to about one trillion Euros a year. It also provides more than ten million jobs.

The Schengen area

The Schengen Convention, in effect since March 1995, abolished border controls within the area of the signatory States and created a single external frontier, where checks have to be carried out in accordance with a common set of rules.

Today, the Schengen Area encompasses most EU countries, except for Bulgaria, Croatia, Cyprus, Ireland and Romania. However, Bulgaria, Croatia and Romania are currently in the process of joining the Schengen Area and already applying the Schengen acquis to a large extent. Additionally, also the non-EU States Iceland, Norway, Switzerland and Liechtenstein have joined the Schengen Area.

Air transport

The creation of a single European market in air transport has meant lower fares and a wider choice of carriers and services for passengers. The EU has also created a set of rights to ensure air passengers are treated fairly.

Air passenger rights

As an air passenger, you have certain rights when it comes to information about flights and reservations, damage to baggage, delays and cancellations, denied boarding, compensation in the case of accident or difficulties with package holidays. These rights apply to scheduled and chartered flights, both domestic and international, from an EU airport or to an EU airport from one outside the EU, when operated by an EU airline.

Rail transport

Over the last 25 years the Commission has been very active in proposing restructuring the European rail transport market and in order to strengthen the position of railways vis-à-vis other transport modes. The Commission's efforts have concentrated on three major areas which are all crucial for developing a strong and competitive rail transport industry:

opening the rail transport market to competition,
improving the interoperability and safety of national networks and
developing rail transport infrastructure.

Iceland became an independent republic on 17 June 1944 and has a written constitution and a parliamentary form of government.

The president is elected by direct popular vote for a term of 4 years at a time. His role is mainly formal but he may apply a veto to a law passed by Parliament.

The Parliament (Althingi), where laws are made and amended, is the legislative body. and comprises 63 members from six districts, elected for a term of 4 years by popular vote. Eight political parties have representatives in the parliament. The largest party is the Independence Party (Sjálfstæðisflokkur), followed by the Left-Green Movement (Vinstri hreyfingin grænt framboð), the Social Democratic Alliance (Samfylking), the Centre Party (Miðflokkur), the Progressive Party (Framsóknarflokkur), the Pirate Party (Pírataflokkurinn), the People’s Party (Flokkur Fólksins) and the Reform Party (Viðreisn). After the elections that took place in September 2021, a coalition government of the Left movement of green supply, the Independence Party and the Progressive Party was formed under the chairmanship of Bjarni Benediktsson.

The executive power is in the hands of the government, the prime minister and his ministers.

Offices of the executive branch, such as the ministries, directorates and various other government agencies, are responsible for implementing laws. District Commissioners (Sýslumenn) are in charge of administrative functions in the province, each in their district, as provided by laws, regulations or other government orders. The country is divided up into nine administrative districts.

The Court of Appeal was introduced on 1 January 2018, creating a three tier court system. Legal proceedings first go before one of eight district courts and then before the Court of Appeal if one of the parties appeals. After having received approval, cases may then be appealed to Hæstiréttur (Supreme Court) but, in most instances, the judgement of the Court of Appeal will provide the final conclusion.

Central administration of the police force is in the hands of the National Commissioner of the Icelandic Police. The country is divided up into nine police districts.

The Ombudsman of the Althingi supervises the administrative organisation of the government and of local authorities and allows civilians to seek assistance if they believe that they are in violation.

The Icelandic Human Rights Centre employs a lawyer to provide legal counsel for immigrants, free of charge.

The Directorate of Labour operates under the Minister of Social Affairs and Equal Opportunities and is, among other things, in charge of the Unemployment Insurance Fund, the Maternity/Paternity Leave Fund, the Wage Guarantee Fund and as well as numerous other labour market-related projects. The agency operates service offices in nine locations in the country.

Links:

Title/Name	URL
Forseti Íslands (President of Iceland)	http://www.forseti.is
Icelandic Parliament	http://www.althingi.is
Stjórnarráð Íslands (Government Offices of Iceland)	http://www.stjornarrad.is
Sýslumenn (District Commissioners)	http://www.syslumenn.is
Héraðsdómstólar (District Courts of Iceland)	https://www.domstolar.is
Landsréttur (Court of Appeal of Iceland)	https://www.domstolar.is
Hæstiréttur Íslands (The Supreme Court of Iceland)	https://www.haestirettur.is
Police	http://www.logreglan.is
Umboðsmaður Alþingis (The Althing Ombudsman)	http://www.umbodsmaduralthingis.is
Mannréttindaskrifstofa Íslands (The Icelandic Human Rights Centre)	http://www.humanrights.is/en
Vinnumálastofnun (The National Employment Agency)	https://www.vinnumalastofnun.is

Health care centres can be found throughout the country. In the capital area, those centres are located in the neighbourhoods and residents must register at their neighbourhood centre. Health care centres provide all the general medical services, and people usually go there first because of illness or health problems. The centres also provide maternity protection, child welfare, school health care and home care. A fee is charged, specifically for research, but charges are low for those who are insured. Elderly and disabled citizens pay lower fees and the service is generally free of charge for children under 18 years of age.

Outside normal health care centre opening hours, doctors are on duty at health care centres in the villages outside the capital area while, in the capital area, the Emergency Watch (Læknavaktin), located in the shopping mall Smáratorg, in Kópavogur, operates this service. Medical services outside normal opening hours, at night and at weekends, are more expensive.

Emergency rooms and accident centres or emergency departments are located in most health centres and hospitals. The service is provided throughout the year. The emergency telephone number 112 (one, one, two) carries out all emergency services and responds to all emergency calls and assistance requests.

People can go directly to medical specialists who operate their own offices. This service is much more costly than at the health care centres, although health insurance will contribute to the cost. There is, however, a yearly limit on these payments. The elderly, disabled people and children pay lower fees.

In general, the health insurance does not cover dental services. However, dental care services are being implemented for children under 18 years of age. As of 1 January 2018, only one fixed fee of ISK 2 500 applies to children. Specific rules apply to the participation of health insurance in dental costs for the elderly and the disabled and the cost of orthodontics for children.

Medicines, both prescriptions and retail drugs, can be purchased only in pharmacies and drug stores. Health insurance subsidises prescription drugs through a special, step-by-step payment system, each person paying proportionally less as their medical expenses increase within a 12-month period. In the first step, the person pays for the medicine in full and, in the second step, they pay 15% of the price of the medicine. In the third step, they pay 7.5%. Once the cost of the drug has reached a certain maximum, the patient will receive full coverage for the remainder of the period.

Links:

Title/Name	URL
Fjölmenningarsetur (Multicultural and Information Centre)	http://www.mcc.is
Sjúkratryggingar Íslands (Icelandic Health Insurance)	http://www.sjukra.is
Heilsugæslan (The Health Care Clinics)	https://www.heilsugaeslan.is
Embætti landlæknis (The Directorate of Health)	http://www.landlaeknir.is
Læknavaktin (Emergency Watch)	http://laeknavaktin.is
Heilbrigðistofnun Vesturlands (The Health Care Institution of West Iceland)	http://www.hve.is
Heilbrigðisstofnun Vestfjarða (The Health Care Institution of the Westfjords)	http://www.fsi.is
Heilbrigðistofnun Norðurlands (The Health Care Institution of North Iceland)	http://www.hsn.is/is
Heilbrigðisstofnun Austurlands (The Health Care Institution of East Iceland)	http://www.hsa.is
Heilbrigðisstofnun Suðurlands (The Health Care Institution of South Iceland)	http://www.hsu.is
Heilbrigðisstofnun Suðurnesja (The Health Care Institution of Sudurnes)	http://www.hss.is
Landspítalinn Háskólasjúkrahús (The National University Hospital of Iceland)	http://www.landspitali.is
Tannnlæknavaktin (The dental emergency care)	http://www.tannlaeknavaktin.is
Lyfjastofnun (Icelandic Medicines Agency)	https://www.lyfjastofnun.is

The education system is divided into four parts, pre-school, compulsory school, upper secondary school and university.

Attending pre-school is not mandatory. Most pre-schools are run by local authorities, but there are also privately operated pre-schools. Parents apply for a pre-school stay for their child in their municipality or the relevant pre-school. It varies from municipality to municipality when children can enter pre-school, but it is usually between the ages of one and two.

All children aged 6-16 years are required to attend compulsory school in Iceland. Parents or guardians are responsible for registering children at school, and most primary schools are run by local authorities.

Upper secondary education follows compulsory school, but attendance is not mandatory. The duration of the secondary education varies, depending on whether it is an academic programme or vocational education, and a matriculation degree usually takes 3 years. Upper secondary schools are referred to as comprehensive high schools (fjölbrautarskólar), colleges (menntaskólar), trade schools (iðnskólar) or vocational colleges (verkmenntaskólar). Students complete studies either with a matriculation degree in academic subjects, a vocational degree from a trade school or a special degree programme. Some upper secondary schools offer evening classes and distance learning for an older group of students.

Those who have completed a matriculation or equivalent degree can attend university. Some subjects require a special entrance exam. Some universities offer a special graduate programme for those who have not completed a matriculation degree and distance education in certain subjects. University education is completed with an appropriate degree according to level and length of study, i.e. a diploma, a bachelor, masters or doctorate degree. In Iceland, there are seven universities, five of which are operated by the government and two are private universities.

Links:

Title/Name	URL
Fjölmenningarsetur (Multicultural and Information Centre)	http://www.mcc.is
Mennta- og menningarmála ráðuneytið (The Ministry of Education, Science and Culture)	https://www.menntamalaraduneyti.is
Menntamálastofnun (The Directorate of Education)	https://www.mms.is
Reykjavíkurborg (City of Reykjavik)	http://reykjavik.is
Samtök sjálfstæðra skóla (Independent School's Organisation)	http://svth.is/samtok-sjalfstaedra-skola-2
Registration at upper secondary school	http://www.menntagatt.is
University studies in Iceland	http://www.studyiniceland.is
Lánasjóður íslenskra námsmanna (The Icelandic Student Loan Fund)	http://www.lin.is/lin.html

Title/Name	URL
Information on junior colleges	http://www.menntagatt.is
Information on universities	https://www.mcc.is/enska-haskolar
List of local authorities in Iceland	https://www.samband.is/english

Title/Name	URL
Eurostat	http://ec.europa.eu/eurostat
Velferðarráðuneytið (Ministry of Welfare)	https://www.velferdarraduneyti.is

Title/Name	URL
Fjölmenningarsetur (Multicultural and Information Centre)	http://www.mcc.is
Hagstofa Íslands (Statistics Iceland)	https://hagstofa.is
Housing for rent	http://www.mcc.is/husnaedi/husnaedisleit
Housing benefits	https://husbot.is
Leasing agreement	https://eng.velferdarraduneyti.is/forms
Real estate agencies association	http://ff.is

Title/Name	URL
The Reykjavík Grapewine	http://grapevine.is
The Árni Magnússon Institute for Icelandic Studies	http://www.arnastofnun.is
Iceland Review	http://icelandreview.com/news
Swimming pools	http://sundlaug.is

Title/Name	URL
Icelandic Transport (Samgöngustofa)	http://www.samgongustofa.is
Keflavík International Airport	http://www.kefairport.is
Domestic airport	http://www.isavia.is/farthegar/innanlandsflug
Road and Coastal Administration	http://www.vegagerdin.is
Bus	http://www.straeto.is

Living and working conditions: Iceland

Finding a job

Traineeships

Definition

Eligibility

Implementation