Strengthening the collective bargaining agreement – Treasury of Iceland
Agreement between the Minister of Finance and Economic Affairs on behalf of the Treasury and Efling . Valid from 1 November 2024.
1. Purchase
1.1. Monthly salary
The monthly salary of a full-time employee shall be paid according to the attached salary tables (see attachment 1), which shall be subject to the following changes during the contract period, unless otherwise specified in the salary tables:
1.4.2025 3.50% or 23,750 ISK.
1.4.2026 3.50% or 23,750 ISK.
1.4.2027 3.50% or 23,750 ISK.
Fractions from the monthly salary are calculated by dividing the monthly salary by 21.67 and multiplying by the number of calendar days other than Saturdays and Sundays from the beginning or to the end of the working period.
In addition to the monthly salary, other salaries that are included in the job may be paid on a monthly basis. Other salaries may be for regular overtime and work-related stress that cannot be measured in hours. Other salaries may, among other things, replace overtime pay according to Art. 1.4.
1.2. Job sequencing and workload assessment
When deciding on the classification of jobs into salary groups, Article 11.3.1 shall be followed.
Personal and temporary factors, cf. Articles 11.3.2.2 and 11.3.2.3, shall be assessed as stress levels.
1.3. Hourly wage
The hourly wage for daytime work is 0.632% of the monthly wage in each wage group and step.
It is permissible to pay hourly wages in the following cases:
1. Students working during study breaks.
2. Pensioners who work part-time.
3. Employees hired for a short period of time due to special, annual peak periods of various government agencies, but not longer than two months.
4. Employees hired to work on specialized, limited projects.
5. Employees who work irregularly for longer or shorter periods of time, although only in very exceptional circumstances.
6. It is not permitted to pay hourly wages for shift work.
It is not permitted to pay hourly wages for daytime work in excess of 100% work rate each month, cf. Articles 2.3.5 and 2.3.6.
1.4. Overtime pay
Overtime is paid at an hourly rate, which is divided into overtime 1 and overtime 2. The hourly rate for overtime 1 is 0.9385% of the monthly salary in each pay group and step, while the hourly rate for overtime 2 is 1.0385% of the monthly salary in each pay group and step.
Payment for overtime shall be made in the following manner:
Overtime 1 8:00 a.m. - 5:00 p.m. Monday - Friday.
Overtime 2 5:00 PM - 8:00 AM Monday - Friday.
Overtime 2 00.00 - 24.00 Saturdays, Sundays and special holidays.
Overtime pay 2 is also paid for work in excess of 38.92 hours per week (168.63 hours based on an average month).
Fixed overtime that is marked as such in the payroll system will be paid as overtime 2.
All work performed on major holidays according to Article 2.1.4.3. is paid at an hourly rate of 1.375% of the monthly salary.
If overtime work away from a fixed workplace is not paid according to the time sheet, such payment shall be negotiated in advance with the employee in question and in consultation with the union.
1.5. Overtime pay – shift pay
Shift work premium is calculated from daytime wages, cf. Article 1.3.1.
The shift load shall be:
33.33% at 17:00 - 24:00 Monday - Thursday
55.00% at 17:00 - 24:00 Fridays
65.00% at 00:00 - 08:00 Tuesday - Friday
55.00% from 08:00 to 24:00 on Saturdays, Sundays and special holidays
75.00% 00:00 - 08:00 Saturdays, Sundays, Mondays and special holidays
120.00% from 00:00 - 24:00 on major holidays, cf. Art. 2.1.4.3, however, from 16:00 - 24:00 on Christmas Eve and New Year's Day and from 00:00 - 08:00 on Christmas Day and New Year's Day, the surcharge is 165.00%.
Fractions of hours are paid proportionally.
Payment for on-call shifts shall be calculated from daytime wages, cf. Art. 1.3.1, in the following manner:
33.33% at 17:00 - 24:00 Monday - Thursday
45.00% at 17:00 - 24:00 Fridays
45.00% at 00:00 - 08:00 Monday
33.33% at 00:00 - 08:00 Tuesday - Friday
45.00% at 00:00 - 24:00 Sat., Sun. and special holidays
120.00% from 00:00 - 24:00 on major holidays, cf. Art. 2.1.4.3, however, from 16:00 - 24:00 on Christmas Eve and New Year's Day and from 00:00 - 08:00 on Christmas Day and New Year's Day, the surcharge is 165.00%.
Breaks in hours are paid proportionally. Payments for on-call duty are subject to Articles 2.3.3.1 and 2.3.3.2.
Employees' working hours shall be continuous as far as possible. Gaps in working hours shall be compensated for by shift work, in accordance with Article 1.5.1.
Payment for gaps and on-call duty during daytime working hours according to Article 2.2.1 is a 33.33% surcharge.
1.6. Cleaning
Time-based piecework for cleaning.
During the period 08:00-20:00 Monday - Friday, payment for time-based piecework is as follows:
From 1 Nov. 2024: 2,925.87 ISK.
From April 1, 2025: ISK 3,083.87.
From April 1, 2026: ISK 3,238.06.
From April 1, 2027: ISK 3,396.73.
1.6.1 Transitional provisions
Employees who had a different time standard on Fridays before May 1, 2000 shall maintain it as long as their employment is not terminated.
All other times of the week, except 00:00-08:00:
From 1 Nov. 2024: 3,529.76 ISK.
From April 1, 2025: ISK 3,720.37.
From April 1, 2026: ISK 3,906.39.
From April 1, 2027: ISK 4,097.80.
Cleaning during the period 00:00-08:00 is paid at overtime rates according to the fifth wage group, second step.
Cleaning on major holidays is paid according to Article 2.1.4.3. with a major holiday purchase according to the fifth salary group, second step.
If a cleaner takes on an extra piece of work within the same cleaning area as a direct continuation of their regular work, that work shall be paid for at the overtime rate according to the fifth wage group, second step.
Units of measurement in time-based piecework are based on an average of 21.67 working days per month (52x5: 12) or an average of 4.33 weeks per month (52: 12).
1.6.2 Area-measured piecework
For each square meter per month:
Flooring Five-room toilet
From 1 Nov 2024 714.17 ISK 619.17 ISK 805.17 ISK.
From April 1, 2025 752.74 ISK 652.61 ISK 848.65 ISK.
From April 1, 2026 790.37 ISK. 685.24 ISK. 891.08 ISK.
From April 1, 2027 829.10 ISK 718.82 ISK 934.75 ISK.
Purchase rates for piecework according to area measurement shall be based on a 5-day workweek. If fewer days of the week are worked than 5, payment shall be made pro rata.
Cleaning work according to area measurement that is carried out on weekends and special holidays shall be paid at overtime pay according to the fifth wage group, second step.
On major holidays according to Article 2.1.4.3, it is paid with a major holiday bonus according to the same wage group. The same applies to cleaning work in excess of regular work obligations.
1.7. Personal allowance
Personal allowance (December allowance) during the contract period will be as follows:
In the year 2024 106,000 kr.
In the year 2025 110,000 kr.
In the year 2026 114,000 kr.
In the year 2027 118,000 kr.
An employee who is working in the first week of November shall receive a personal allowance on December 1st of each year based on full-time work during the period January 1st to October 31st. The personal allowance is a fixed amount of króna and does not include increases according to other provisions of the collective agreement. Holiday pay is not included in the personal allowance.
If the employee has worked part-time or part of a year, he shall be paid based on the employment ratio during the aforementioned period. Similarly, an employee who has left his job but has worked continuously for at least 3 months (13 weeks) during the year shall also be paid personal allowance, based on the length of service and employment ratio. The same applies even if the employee is off work due to illness after the institution's payment obligation ends or on maternity leave. Earned personal allowance shall be settled in parallel with termination of employment.
The December bonus for area-based cleaning is determined by the number of square meters paid for the period January 1 - October 31, so that 750 square meters per month is considered full-time work and fewer square meters are calculated proportionally.
1.8. Additional salary
Additional pay may be paid in excess of the regular monthly salary. The decision to pay additional pay shall be made by the director and shall be in accordance with the rules of the Minister of Finance and Economic Affairs on the payment of additional pay. The amount of additional pay shall be within the budget of the institution in question and based on objective considerations. Additional pay may be paid for up to six months, but if there is reason to do so, its payment may be extended by three months at a time, but never for more than two consecutive years.
2. About working hours
2.1. General
The workweek of a full-time employee is 36 active working hours.
Work may be conducted in a manner other than that described in this chapter by agreement between the employees and administrators of an institution and with the written consent of the contracting parties.
The parties to the contract may agree to extend daytime working hours on weekdays, beyond the time limits referred to in Article 2.2.1.
Working hours shall be continuous as far as possible. Gaps in working hours shall be paid according to Articles 1.5.3 and 1.5.4.
Holidays
Public holidays are Saturdays and Sundays.
Special holidays are:
1. New Year's Day
2. Epiphany
3. Good Friday
4. Saturday before Easter
5. Easter Sunday
6. Another Easter
7. The First Day of Summer
8. May 1
9. Ascension Day
10. Pentecost
11. Another in Pentecost
12. June 17
13. Shopkeepers' Day
14. Christmas Eve after 12:00
15. Christmas Day
16. Another Christmas
17. New Year's Eve after 12:00
Major holidays are:
1. New Year's Day
2. Good Friday
3. Easter Sunday
4. Pentecost
5. June 17
6. Christmas Eve after 12:00
7. Christmas Day
8. New Year's Eve after 12:00
Provisional provisions:
Those employees who had May 1 as a major holiday prior to the signing of this agreement shall keep it as long as employment remains uninterrupted with the same organization.
2.2. Day work
Daytime working hours are from 08:00 to 17:00 on weekdays from Monday to Friday.
Those institutions that have had other working arrangements should maintain them.
The head of an institution may grant individual employees' requests for flexible working hours during the period 07:00 - 18:00 on weekdays. The consent of the contracting parties shall be sought when such authorization is granted.
A day worker who works part of his weekly work obligation outside the daytime working period according to Article 2.2.1 shall be paid a bonus according to Article 1.5.1 for that part of his work. If an extension of the daytime working period has been agreed upon, according to the second paragraph of Article 2.1.2 or Article 2.2.2, no bonus shall be paid outside the time limits specified in Article 2.2.1.
If work at a workshop is cancelled due to weather or other causes for which the employees are not responsible, compensation for regular working hours shall be payable. In such cases, employees may be assigned other tasks for the benefit of the organization.
2.3. Overtime
Overtime is considered work that is performed outside the employee's prescribed daily working hours or shift, as well as work that is performed in excess of the weekly working hours even during daytime working hours.
All work performed on special holidays according to Art. 2.1.4.2, shall be paid as overtime according to Art. 1.4 unless the work falls under Art. 2.6.7.
2.3.1 Call-outs
Call-out on weekdays between 08:00 and 24:00. When an employee is called to work that is not a direct continuation of his daily work, overtime pay shall be paid for at least 3 hours, unless his regular working hours begin within three hours of going to work, in which case overtime shall be paid from the beginning of the call-out until the regular working hours begin. If the call-out ends before 3 hours have passed since the end of the daily work, overtime shall be paid for the time from the end of the daily work to the end of the call-out.
On-call between 00:00 and 08:00 and on public and special holidays. If an on-call begins between 00:00 and 08:00 from Monday to Friday, 17:00-24:00 on Friday or on public or special holidays according to Art. 2.1.4.1 and 2.1.4.2, overtime pay shall be paid for at least 4 hours unless regular working hours begin within 3 ½ hours of the on-call beginning, in which case an additional ½ hour shall be paid for the time worked.
The minimum payment for a call does not include meal and/or coffee breaks, nor travel time or compensation for such. In the case of repeated calls at short intervals, continuous time shall be paid from the beginning of the previous/first call until the end of the second/last call.
If an employee has, by law or contract, a shorter weekly work obligation than is provided for in Article 2.1.1, work in excess of this shall be paid in accordance with Articles 2.3.5 and 2.3.6.
Irregular work in excess of the reduced work obligation or continuous work for less than one month is paid at the rate paid for overtime.
Regular work by day workers within the daytime working hours, for one month or more, up to the work obligation based on full-time work, is paid as a calculated percentage of the monthly salary, provided that the employee has been informed of this before the work began. The same applies to regular work by shift workers, provided the same conditions are met, regardless of when in the day the work is performed.
Therefore, institutions are directed to establish more detailed rules regarding overtime and when it is appropriate to discuss a review of the work ratio, provided that overtime is regular or foreseen.
All overtime shall be paid in arrears for each month or every thirty days and shall be paid no less than 15 days after the last day of the accounting period. The same applies to payment for overtime during periods of illness.
An employee may, by agreement with the employer, accumulate vacation days for overtime work, in such a way that overtime hours are accumulated and taken during the daytime working period, but the overtime bonus is paid with the next regular payment. There must be an agreement on taking the vacation and it must be organized in such a way as to cause the least possible disruption to the organization's operations. Vacation according to the above, due to the preceding calendar year, which has not been used before April 15 of each year, or upon termination of employment, shall be paid at the employee's daytime rate with the next regular payment.
If there is an agreement between the parties, 1.62 hours of daytime leave may also be granted for each hour of overtime, in which case the overtime pay is waived as it replaces the overtime hours worked.
The number 1.62 is found by multiplying 156 hours based on an average month (based on a weekly work obligation of 36 active working hours) by the overtime calculation factor 2, which is 1.0385%.
When residential care workers travel with and care for residents on trips, each travel day shall be calculated as up to 12 hours. Working hours in excess of regular work obligations shall be paid as overtime. For overnight stays on trips with residents, an additional 2 hours shall be paid.
2.3.2 Absence compensation
Absenteeism allowance shall be paid for extended periods of time spent working away from a permanent workplace.
Remote work allowance is paid for temporary work at workplaces in the wilderness, offshore or similar workplaces where it is not possible to travel to the workplace from home or the employer's permanent premises in a built-up area, or where this is not possible at the employer's discretion.
Absence compensation is paid in such a way that, in addition to the time worked, one hour of overtime per day shall be paid from the third day of continuous absence, which meets the conditions of Article 2.3.10.2. This payment shall be cancelled if payment for this work is made in accordance with other provisions of this agreement or according to special agreements in excess of what is determined in the collective agreement of the companies.
2.4. Rest period
Scope, etc.
Regarding the scope of application, rest periods, work breaks and more, reference is made to the agreement between ASÍ, BHM, BSRB and KÍ and the State Negotiating Committee, the City of Reykjavík and the Municipal Wage Committee from 23 January 1997, on certain aspects concerning the organisation of working hours, which is attached to this collective agreement as an attachment and is considered a part of it.
In this connection, reference is also made to the guidelines of the Consultative Committee on the organization of working hours, dated 16 February 2001. This Consultative Committee is appointed in accordance with Article 14 of the aforementioned agreement and is also tasked with discussing disputes that may arise due to the issues discussed therein.
Daily rest period - About the organization of working hours
Working hours shall be arranged so that in a 24-hour period, calculated from the planned/routine start of the employee's working day, the employee receives at least 11 hours of uninterrupted rest. If applicable, daily rest shall extend from 23:00 to 06:00. Work shall not be arranged so that working hours in a 24-hour period exceed 13 hours.
Scheduled or routine start of the working day – explanation If the planned start of the working day is, for example, 8:00, that time limit shall be used. If, on the other hand, an employee has fixed working hours that begin, for example, 20:00, the 24-hour period shall be used for that time limit. In shift work, it is normal to use the start of the working day as the marked working day on the shift register/duty register. If it is not a marked working day, for example, an extra shift during a shift holiday, the start is used for the time limit of the last marked working day.
An employee is entitled to a break of at least 15 minutes if their daily working hours exceed 6 hours. Coffee and meal breaks are considered breaks in this context.
2.4.1 Deviations from the minimum daily rest period
Shift change
During a structured shift rotation, it is permitted to shorten the minimum continuous rest period of employees to up to 8 hours. This applies, for example, when an employee switches from a morning shift to a night shift according to the shift schedule. However, this deviation from the 11-hour minimum rest period does not apply when an employee finishes overtime and switches to a regular shift and vice versa. Since this is a deviation from the general principle of 11 hours of continuous rest, the shift system must be required to be organized in such a way that changes between different types of shifts occur as rarely as possible during a shift cycle and, as a rule, this deviation does not occur more than once a week. Work must therefore be organized in a manner that is as even as possible.
Special circumstances
In special circumstances, it is permitted to shorten the minimum continuous rest period to up to 8 hours and extend a work cycle to up to 16 hours, i.e. in the event of unforeseen events when valuables need to be saved. Furthermore, when public interest so requires and/or necessary health or safety services need to be maintained. If the authorizations for deviations from the daily rest period according to this section are used, the employee shall receive corresponding rest instead. In the immediate aftermath of such a work cycle, the employee shall be granted 11 hours of rest at the full salary that he would otherwise have received.
Disruption of operations due to external circumstances
If operations are disrupted by external circumstances, such as weather or other natural forces, accidents, power outages, breakdowns in machinery or other equipment, or other such unforeseen events, the provisions on minimum daily rest may be waived to the extent necessary to prevent significant damage until regular operations have been resumed. These are unforeseen events. It is appropriate to call another employee to work to replace the employee who has not had the required rest, if possible.
2.4.2 Weekly Sabbath
Weekly Sabbath
In each 7-day period, an employee shall be given at least one weekly rest day directly related to the daily rest period, assuming that the week begins on Monday. An employee shall thus be given 35 hours of uninterrupted rest once a week.
As far as possible, the weekly rest day shall be on Sunday and the employee shall be given a day off. However, an institution may, by agreement with its employees, postpone the weekly rest day where special reasons make such a deviation necessary, so that the weekly rest day shall be replaced by two consecutive rest days every two weeks.
If there is a special need to organize work so that the weekly rest day is postponed, the taking of rest days shall be arranged so that two rest days are taken together.
2.4.3 Exemption right
General conditions for the right to take leave
If the manager has assessed that it is urgently necessary for an employee to report to work before the 11-hour minimum rest period has been reached, the employee is entitled to 1 1/2 hours (during daytime work) for each hour that the rest period is reduced. The accrual of the right to take time off is not limited to whole hours. An employee should not report back to work until after the 11-hour rest period has been completed unless he has been specifically asked to do so. If an employee nevertheless reports before he has reached the minimum rest period, he does not accrue the right to take time off.
Continuous rest interrupted by a call - Time off entitlement based on the longest break.
If rest is interrupted once or more times within a 24-hour period from the planned/routine start of the employee's working day, the remainder of the 11-hour rest period shall be made up, based on the longest break within a work cycle, with the right to take time off, 1 1/2 hours (daytime work) for each hour missing from the 11-hour rest period.
Working more than 16 hours.
If an employee has worked a total of more than 16 hours in one 24-hour period, i.e. every 24 hours, based on the employee's planned/routine start of the working day, without achieving 8 hours of uninterrupted rest, the employee shall, without exception, receive 11 hours of uninterrupted rest after work, without deduction from the wages he would otherwise have received. The right to take time off, 1.5 hours (daytime work), is accrued for each hour worked in excess of 16 hours.
Increased time off entitlement due to continuous work exceeding 24 hours.
In the special exceptional cases where an employee works a full 24 hours continuously, the right to take time off shall increase so that each full hour in excess of 24 provides a right to take time off that is 1.8% longer than the right to take time off that the previous hour provided.
Work before the Sabbath
If, according to the decision of the supervisor, an employee works so long before a rest day that 11 hours of rest cannot be achieved based on the usual start of the working day or shift (see explanatory box in Article 2.4.2), the employee shall report correspondingly later at the start of the next regular working day, without deduction from the salary he would otherwise have received, otherwise the right to take time off will accrue, 1½ hours. during daytime work for each hour that the rest is reduced.
Information about time off entitlement on pay slip
Accumulated time off entitlement shall be stated on the pay slip and shall be granted in half or full days.
Exemption
Time off shall be granted in consultation with the employee, provided that the accumulated time off entitlement is at least four hours and time off shall not be granted in shorter periods than that. Efforts shall be made to grant time off as soon as possible or on a regular basis to prevent time off from accumulating.
Payment of part of the exemption right
It is permissible to pay out 1/2 hour (during daytime work) of every 1 1/2 hours that an employee has earned in time off, if he so requests.
Settlement upon retirement
Upon termination of employment, untaken leave entitlement shall be settled in the same manner as vacation. Leave entitlement does not expire.
Senior managers and others who decide their own working hours
These parties cannot, by their very nature, acquire the right to take time off, cf. also the scope of the occupational safety and health provisions for them in European Union Directive No. 93/104/EC, point 1, point a, Article 17 and paragraph 4, Article 1 of the aforementioned agreement between the social partners dated 23.01.1997.
2.5. Standby duty, standby leave
On-call duty means that an employee is not on duty but is available to respond to a call. It is not considered on-call duty if an employee remains at the workplace at the request of a supervisor. For payment for on-call duty, see Article 1.5.2.
An employee is entitled to time off in lieu of payment for on-call duty. A 20-minute time off is equivalent to 33.33% of the shift rate, a 27-minute time off is equivalent to 45% of the shift rate, a 72-minute time off is equivalent to 120% of the shift rate, and a 99-minute time off is equivalent to 165% of the shift rate.
Standby pay is cancelled for the time that overtime pay is paid.
For regular on-call duty, leave corresponding to a maximum of 80 hours shall be granted for 1200 hours on-call duty. This leave shall be granted proportionally based on the work ratio and working hours. On-call leave is a maximum of 80 hours due to clause 2.5.4 even if the on-call hours are more than 1200. An effort shall be made to take on-call leave in parallel with the accrual and as soon as possible.
Hours worked on standby shifts shall not be deducted when calculating annual standby hours, cf. Article 2.5.4.
A permit pursuant to Article 2.5.4 may be granted at any time of the year, but it may not be transferred between years.
It is permissible to negotiate with an employee about payment in lieu of holidays according to Article 2.5.4. This payment is based on hourly wages for daytime work according to Article 1.3.1.
It is permitted, by agreement between the employees and the management of an institution and with the written consent of the contracting parties, to negotiate a different arrangement for payment for on-call shifts than that set out above. For example, it is permitted to negotiate a certain number of hours for on-call shifts regardless of the duration. If on-call shifts other than those referred to in Article 1.5.2 are negotiated, it shall be agreed that, taking into account the frequency of calls and the duration of calls during a specific reference period, on-call shifts shall not be cancelled in part or in full.
2.6. Shift work
Those who work regular shifts shall receive a bonus for work performed during the time that falls outside the normal daytime working period according to Article 2.2.1.
If an employee's scheduled working hours are normally 20% or more outside of daytime working hours, they are considered a shift worker.
Where regular shifts are worked, a draft shift schedule, showing the expected working hours of each employee, shall be submitted six weeks before it takes effect. The final shift schedule shall be submitted one month before the first shift under the schedule begins, unless an agreement is reached with the employee for a shorter period.
If the organization's operations require a change to the shift schedule, it must be made with the employee's consent. If the shift schedule is changed with less than 24 hours' notice, the employee in question shall be paid a change fee of 2% of the monthly salary in each salary group and step. If the notice is 24-168 hours (one week), a change fee of 1.3% of the monthly salary in each salary group and step shall be paid. This only refers to a change to a planned shift and not an extra shift.
If an employee takes a shift in excess of work obligation, with less than 24 hours' notice during the period 17:00-24:00 on Fridays, 24:00-08:00 Monday to Friday, 00:00-24:00 Saturdays, Sundays and special holidays, cf. Art. 2.1.4.2 based on an 8-hour shift, a change fee of 1.3% of the monthly salary in each salary group and step shall be paid and prorated for longer or shorter shifts.
When drawing up a shift schedule, care must be taken to ensure that holiday work is distributed equally among employees.
As a rule, shifts shall be between 4 and 10 hours. It is permitted, cf. Art. 2.1.2, to negotiate other lengths of shifts.
Where social time is necessary during shift changes, it shall be incorporated into regular working hours.
Shift work shall be organized so that employees generally receive two consecutive days off per week.
The annual work obligation of shift workers who work regular shifts shall generally be the same as that of day workers. The work obligation of shift workers is therefore reduced by 7.2 working hours compared to full-time work due to special holidays and major holidays, according to Art. 2.1.4.2, which fall on Monday to Friday with the exception of Christmas Eve and New Year's Day, which shall be 3.6 hours for each day compared to full-time work. As a rule, a reduction in work hours due to special holidays shall be taken out within the period of the shift record. If an employee wishes to accumulate work hours due to special holidays and major holidays, he shall notify his superior of this before submitting the shift record when accrual occurs. The superior is obliged to comply with the employee's wishes, as this is relevant for the activities of the institution. In cases where work shifts due to special holidays and major holidays are moved between months, this must be kept under control and employees informed regularly. Work that falls on special holidays and major holidays must also be paid with a surcharge according to Art. 1.5.1.
Regular shifts refer to shifts that are scheduled every day, including special holidays and major holidays. In cases where an institution is closed on a special holiday or major holiday, an employee who is on duty that day according to the scheduled shift schedule will receive time off equal to the shift in lieu of reduced work obligations and taking into account the length of the shift.
2.6.1 Weight of shift workers' working hours
The working hours of shift workers outside the daytime working hours according to the planned shift schedule and within the working hours obligation have different weights when calculating the work schedule. Working hours that are paid with a 33.33% and 55% shift load according to Article 1.5.1 have a weight of 1.05, so that for every 60 minutes 63 minutes are calculated. Working hours that are paid with a 65% and 75% shift load according to Article 1.5.1 have a weight of 1.2, so that for every 60 minutes 72 minutes are calculated. Notwithstanding the above, the work schedule of a full-time employee shall never fall below 32 working hours per week on average (on average during the pay period) and proportionally based on working hours and work ratio.
Mandatory working hours paid with 120% shift allowance according to Art. 1.5.1 have a weight of 1.05 in the period 08:00-24:00 and a weight of 1.2 in the period 00:00-08:00. Mandatory working hours paid with 165% shift allowance have a weight of 1.20.
2.6.2 Shift motivation
Employees who work shifts and meet the requirements of the article are paid a shift incentive as follows. The shift incentive is paid as a percentage of the monthly salary paid due to diversity and the number of shifts in the last three settlement periods according to planned shifts within the working hours obligation. The minimum number of working hours during that period outside the daytime working hours (at 33.33%, 55%, 65% and 75% load) is 126 working hours. Shifts are classified into four types; day shifts, evening shifts (33.33% load), night shifts on weekdays (65% load) and weekend shifts (55% and 75% load). The minimum number of working hours in each type of shift shall be 45 working hours. An employee must work shifts in two to four types of shifts, 14 times or more on average during the settlement period in order to benefit from the shift incentive.
When employees are employed, shift incentives are calculated for one settlement period during the first and second months of employment, so that the minimum number of hours outside daytime working hours is 42 and the minimum number of mandatory hours in each type of shift is 15. After three months of employment, shift incentives are calculated according to paragraph 1. The same applies when changes in the employment ratio of 40% or more are agreed, either in terms of increase or decrease.
The percentage of shift incentives is based on the following table:
Shift incentive is calculated based on the last three settlement periods. Settlement period refers to the settlement period of variable wages at the workplace. Shift incentive paid on April 1 is therefore based on the settlement period for payment in the payment of wages on February 1, March 1 and April 1, and shift incentive paid on May 1 is based on the pay periods for payment on March 1, April 1 and May 1.
Employees who work regular shift work shall be exempt from night shifts if they so wish, once they have reached the age of 55.
2.7. Special provisions for cleaning
Cleaning jobs refer to: piecework, square meter work, and hourly cleaning.
The following provisions apply to employees in cleaning work unless otherwise specifically agreed.
Other matters regarding cleaning than those mentioned in this agreement are governed by a framework agreement between VMSÍ on the one hand and the Minister of Finance on behalf of the Treasury, the City of Reykjavík, VSÍ and VMS on the other hand, dated 1 November 1994.
All regular cleaning that is intended to be performed according to a time-measured piecework will be paid according to a time-measured piecework rate, until measurement has been performed.
Cleaning/main cleaning work is paid at an overtime rate according to the fifth wage group, second step, if it is not part of the employee's general work obligations. However, never lower than the rate corresponding to the higher rate for time-measured piecework for cleaning.
No payment shall be made for less than 3 hours of cleaning work, based on the relevant rate.
A cleaner on temporary work shall be entitled to 3 hours of work with a combination of cleaning areas within the same building or more where possible.
Cleaning work performed between 08:00 and 18:00 from Monday to Friday on a part-time basis or more may be paid as a monthly salary, as by their nature they will not be performed on a piecework basis.
If it is not possible to start work on premises at the usual time due to circumstances at the workplace or the time specified in the job description and the employee is not notified before he arrives at the workplace, he shall be paid according to the relevant rate while he waits at the workplace. The employee is responsible for providing information about the length and reasons for the waiting time to his superior as soon as possible.
3. Breaks from work, meals and cafeteria
3.1. Break from work
Employees are permitted to consume food and drink during their work when necessary for the job, and such breaks are part of active working hours.
It is permissible, by agreement between the management of an institution and a simple majority of the employees concerned, to determine daily breaks that are at the discretion of the employees. Their determined length extends the employees' daily presence correspondingly, as such breaks do not count as active working hours.
In institutions where breaks are determined by such an agreement and work is done during the break at the request of the supervisor, it is paid for with overtime pay.
Those individuals and/or work groups who, prior to the entry into force of this agreement, generally received regular payments pursuant to Article 3.2 of the previous agreement, shall continue to receive comparable payments pursuant to Protocol 2.
3.2. Food and cafeteria
Employees who work at a fixed workplace shall have access to a canteen, as far as possible. A canteen is considered to be a place in this case where hot and cold food, imported or cooked on site, can be served. The type of premises and facilities shall be in accordance with the requirements of the relevant health authorities. Employees shall pay the material cost of the food, but other operating costs shall be paid by the relevant institution.
In workplaces where there is no cafeteria, efforts should be made to ensure that employees have access to a nearby cafeteria run by the employer, or equipment should be provided to transport food to the workplace cafeteria so that the transportation of food is free of charge for employees.
If the institution purchases food from a party other than those specified in Article 3.2.2, employees shall pay for comparable food an amount corresponding to the average price paid by employees in the Government canteen.
The average price of food is 968 ISK as of 1 Sept. 2023. The average price is published on the State Human Resources Center: www.mannaudstorg.is.
An employee who does not have access to a canteen but should have it according to Art. 3.2.1 or is on duty when the workplace canteen is not open, shall be compensated with a meal allowance of ISK 639, provided that the employee's daily work obligation is 6 hours or longer.
The amount of child support changes every three months in accordance with the food item of the Consumer Price Index (01 Food and Beverages) with the May 2024 index as the base index (236.6 points) based on sub-indices from 2008.
Where there are canteens at workplaces, employees who purchase food there must nominate 2 shop stewards from their group to monitor the operations of the canteen and have access to its accounts.
3.3. Mandatory food, payments
Employees who are required to eat with their clients and assist them in serving meals shall be exempt from paying for those meals, provided they are not compensated for it in any other way, such as shorter working hours or payment. In such cases, the employee shall have comparable facilities and the same food as the clients.
4. Vacation
4.1. Length of leave
Vacation shall be 30 days (216 hours based on 36 active working hours per week) based on full-time employment. Vacation accrual shall be proportional to the employee's work rate and working hours.
4.2. Holiday pay and holiday allowance
An employee shall receive 13.04% vacation pay for overtime and bonus payments according to this agreement.
Holiday pay during the contract period will be as follows:
In the year 2025 60,000 kr.
In the year 2026 62,000 kr.
In the year 2027 64,000 kr.
On June 1st of each year, an employee who is employed until April 30th of the following year shall be paid a special lump sum, a vacation bonus, based on full-time work during the previous vacation year. Payment shall be made proportionally based on work rate and hours of work.
If an employee has retired during the vacation year due to age or after at least 3 months/13 weeks of continuous work during the vacation year, he shall be paid vacation compensation proportionally based on the time worked and employment ratio. The same applies if the employee was absent from work due to illness after the institution's payment obligation ends or due to maternity leave. Vacation compensation is a fixed amount and does not change according to other provisions of the agreement. Vacation compensation does not include vacation pay. Earned vacation compensation shall be settled in parallel with termination of employment.
4.3. The holiday year
The vacation year is from May 1 to April 30.
If there are changes in the employment ratio during the vacation year, this must be taken into account in the salary calculation when taking the vacation.
4.4. Summer vacation
The summer vacation period is from May 1 to September 15.
An employee is entitled to 20 days of vacation, including 15 consecutive days during the summer vacation period and up to full vacation at the same time, if necessary due to the organization's work.
4.5. Determination of leave
The supervisor decides, in consultation with the employee, when leave shall be granted. The supervisor is obliged to comply with the employee's requests regarding when leave shall be granted, provided that this is possible due to the activities of the institution. A decision on summer leave shall be made as soon as possible and no later than 31 March and notified to the employee in a verifiable manner, such as in the institution's time registration system, unless special circumstances prevent it.
If leave or part of the leave is taken outside the summer vacation period, at the written request of the supervisor, that part of the leave shall be extended by 25%.
4.6. Postponement of vacation
Transferring vacation between years is not permitted, cf. however, articles 4.6.2 and 4.6.3.
If an employee does not take leave or part of a leave, at the written request of the supervisor, the leave may be carried over to the next leave year, provided that the employee has not completed taking leave during the leave year. The same applies to an employee on maternity leave. In such cases, however, the accumulated leave may never exceed 60 days.
Information on the status of accrued and untaken leave shall be accessible to employees in the institution's time registration system.
If an employee becomes ill while on vacation, the time spent sick is not considered vacation, provided the employee proves with a medical certificate that he or she is unable to take vacation.
In the event of illness or accident during vacation, the supervisor must be notified immediately and in a verifiable manner.
In such cases, unused leave may be carried over to the following year.
If an employee leaves another job without having used accrued vacation, he is entitled to unpaid vacation until 30 days of vacation are reached.
If an employee who had vacation time due on May 1, 2020, up to 60 days, has not used those days by April 30, 2023, the remaining days will be forfeited.
4.7. Earned vacation rights
The deceased employee's accrued vacation entitlement shall be paid to the estate.
4.8. Holiday fund
The State Treasury pays a special fee to Efling union's vacation fund. This fee shall amount to 0.5% of the total salary of members in government service. The fee shall be paid monthly in arrears according to the employer's calculation.
5. Travel and accommodation
5.1. Travel expenses according to invoice
Expenses for domestic travel on behalf of the employer shall be paid upon invoice, provided that sufficient original documentation is attached. The same applies if part of the working day is worked so far from the permanent workplace that the employee has to buy food outside the home or permanent workplace.
Employees shall receive advance payment of estimated travel expenses.
The settlement of travel expenses, including driving expenses, is subject to the same rules as the settlement of overtime.
5.2. Domestic daily allowance
Accommodation and food expenses shall be paid with a daily allowance, if agreed upon or if it is not possible to submit invoices.
Daily allowances for domestic travel shall be determined by a committee pursuant to Article 5.7.
If staying in accommodation owned or operated by an institution, no daily allowance is paid for accommodation unless otherwise agreed upon each time.
There is an agreement between the parties that the travel expenses committee's daily allowance for food expenses shall be divided into 8 units for all meals of the day as follows:
1st year student 1 unit. 2,075 kr.
2. morning coffee 1 unit. 2,075 kr.
3. lunch 2 alone. 4,150 ISK.
4. afternoon coffee 1 unit. 2,075 kr.
5. dinner 2 alone. 4,150 ISK.
6. evening coffee 1 unit. 2,075 kr.
The above amounts are valid from October 1, 2024.
Per diems according to Article 5.2.4 are agreed reimbursements of expenses incurred. This means that in workplaces where coffee breaks have been eliminated to shorten daily working hours, those coffee breaks do not count towards per diem units.
5.3. Payment method
The institution and the employee shall decide in advance which method of payment for travel expenses shall be used in each case. Only one method of payment may be used for each individual trip, i.e. payment according to submitted invoices or payment of daily allowance.
5.4. Work attendance and travel
An employee shall report to work at a permanent place of employment on his or her own behalf and in his or her own time.
The following deviations from Article 5.4.1 are made:
An employee shall be provided with travel or have travel expenses paid to and from the workplace if all of the following conditions are met:
The employee is not provided with travel or paid travel expenses for distances longer than 15 km (as the crow flies) from the workplace.
If the provisions of Article 5.4.2.1 do not apply, but the workplace is within an urban area, the employee shall be provided with travel to and from the workplace within a distance of 15 km (as the crow flies), but not beyond 1.5 km (as the crow flies), when the employee has or finishes work during the period from 00:00 to 07:00 on weekdays and from 00:00 to 12:00 on public or special holidays according to Articles 2.1.4.2 and 2.1.4.3.
Those institutions located at least 1.5 km outside the outer limits of the nearest urban area shall, in an institutional agreement pursuant to Chapter 11, negotiate the payment of travel expenses for those employees who do not live locally.
It is permitted in an institutional agreement pursuant to Chapter 11 to negotiate in more detail how the provisions of this Chapter shall be implemented in individual cases, as well as in the case of special circumstances, for example, a stay in the wilderness, at sea or a long stay while traveling.
5.5. Travel time abroad
When an employee goes abroad at the initiative of and on behalf of the employer, payments for such inconvenience shall be made in the following manner:
If a flight departs on a weekday before 10:00 and/or returns after 15:00, the employee shall receive payment equal to three hours of overtime at a 33.33% surcharge according to Art. 1.5.1 for each case.
On public and special holidays, the corresponding payment shall be six hours of overtime at a 55% surcharge according to Article 1.5.1, regardless of the time of day the flight is.
It is permissible to negotiate time off in lieu of travel time payment so that a 33.33% surcharge is equivalent to 20 minutes of time off, a 55% surcharge is equivalent to 33 minutes of time off.
5.6. Daily allowance when traveling abroad
Travel expenses for trips abroad other than airfares are paid with a daily allowance that shall be determined by a committee pursuant to Article 5.7.
The daily allowance for travel abroad must be used to pay all normal travel expenses, other than airfare, such as travel to and from airports, food, housing, minor expenses, and any personal expenses.
5.7. Per diem for courses, etc.
Per diems for courses, training and supervisory work shall be determined by a committee in accordance with Article 5.7.
5.8. Travel Expenses Committee
The amounts of daily allowances for accommodation and food expenses, as well as compensation for the use of employees' private vehicles under this agreement, are the same as those determined by the State Travel Expenses Committee.
5.9. Repatriation away from the workplace
When an employee works away from the regular workplace or home base of the work group to which he belongs, he shall be entitled to free transportation during working hours to and from the home base as follows:
1. Weekly if the distance from the work group's place of residence to the group's home base along the main route is less than 450 km.
2. Semi-monthly if the distance is 451 km. or more. The employee shall be guaranteed no less than 48 hours of rest between trips according to this section.
Notwithstanding the provisions of Article 5.8.1, working groups are entitled to free daily transportation during working hours from their place of residence to their home base if the distance from their home base is less than 60 km and travel or weather conditions do not prevent home travel.
If there are one or two people involved, they shall be similarly guaranteed travel to and from the workplace using an institution's vehicle or their own vehicle for a mileage fee.
Employees of a work group may agree among themselves to reduce the number of home trips from those mentioned above, if they have agreed to reduce their vacation time.
Repatriation that does not fall under the provisions above shall be negotiated on a case-by-case basis.
6. Facilities and hygiene practices
6.1. Employee rights
All employees shall enjoy rights pursuant to Act No. 46/1980 on working conditions, hygiene and safety at work, provided that their work is not covered by other laws.
6.2 About workplaces
A workplace shall be designed in such a way that the utmost safety, good facilities and hygiene are ensured, cf. Chapter VI of Act No. 46/1980.
It is assumed that employees can perform their regular duties within the standard working day. It is important that organizations establish a presence policy that, among other things, emphasizes the separation between work and private life. In cases where employees are required to perform work outside of standard working hours, this should be stated in the employee's job description and terms of employment. Otherwise, special payment should be made for work that the supervisor requires of the employee outside of standard working hours.
6.2. About workplaces
6.3. Medicines and medical supplies
The most common medicines and medical supplies shall be available at the workplace for use in the first aid in the event of an accident. Medicines and medical supplies shall be in the custody and under the responsibility of the foreman and shop stewards.
6.4. Security control
Workplaces must have available for use tools and safety equipment that the Icelandic Occupational Safety and Health Administration deems necessary.
Security guards, security representatives and security committees shall be appointed in accordance with Chapter II of Act No. 46/1980.
6.5. Accident risk
Care should be taken to ensure that employees are not working alone in jobs where there is a high risk of accidents.
This matter shall be negotiated where applicable.
6.6. Obligation to report occupational accidents
If an accident or poisoning occurs in the workplace, the representative of the relevant institution must report it to the police or the Emergency Line and the Icelandic Occupational Safety and Health Administration by telephone or by other means as soon as possible and no later than within 24 hours.
In other respects, regulations No. 920/2006 on the organization and implementation of occupational safety and health at work shall be followed.
The employer must also notify the Icelandic Social Insurance Agency, Accident Insurance Department, of accidents that occur at the workplace or directly on the way to or from work, on special forms available there. While an employee receives accident pay from the employer due to incapacity for work, the employer receives accident daily allowance from the Accident Insurance Department.
6.7. Medical examination / illness
In workplaces where there is a particular risk of harm to the health of employees, the relevant trade union may request a special medical examination of employees. If a specially trained official physician of the Icelandic Occupational Safety and Health Administration deems such an examination necessary, it shall be carried out as soon as possible.
7. Insurance
7.1. Accident insurance
Employees shall be insured against accidents 24 hours a day against death or permanent disability. The insurance shall have different benefit amounts and insurance terms depending on whether the employee suffers an accident at work or outside of work. The terms of this insurance shall be governed by special rules No. 30/1990 and No. 31/1990, which have been issued by the Minister of Finance.
Death benefit is:
1. If the deceased was unmarried and leaves no children under the age of 18 and has not provided for a parent or parents, 67 years of age or older:
due to an accident outside work 1,469,500 kr.
due to an accident at work 1,469,500 kr.
The beneficiaries of these death benefits are the legal heirs.
2. If the deceased was unmarried but leaves behind a child(ren) under the age of 18 and/or has demonstrably provided for a parent or parents, 67 years of age or older:
due to an accident outside work 4,501,300 kr.
due to an accident at work 10,760,000 kr.
The beneficiaries of this death benefit are parents and children. If both parties receive benefits, 1/3 of the benefit goes to the parents, while 2/3 of the benefit is divided equally between the children.
3. If the deceased was married or in a cohabitation that can otherwise be equated to marriage and which lasted for at least 2 consecutive years before his death, benefits to the spouse or cohabitant shall be:
due to an accident outside work 6,157,700 kr.
due to an accident at work 17,559,800 kr.
The beneficiary of this death benefit is the relevant spouse or cohabiting partner.
4. If the deceased leaves behind a child under the age of 18, to each child:
due to an accident outside work 1,469,500 kr.
due to an accident at work 3,511,600 kr.
If the deceased's child, aged 18-25, was studying at a secondary school or university level for at least six months in the year in which the insured person dies, he or she has the same right to benefits.
The beneficiaries of this death benefit are the children concerned. The benefit is paid to the guardian of the child who is financially incapable.
5. Children in points 2 and 4 refer to biological children, adopted children, stepchildren, children of cohabiting partners and foster children for whom the deceased was obliged to support, cf. Article 53 of the Children's Act, No. 76/2003.
6. Benefits are only paid according to one of points 1, 2 or 3. In addition to benefits according to points 2 and 3, benefits according to point 4 may be paid.
The insurance amounts for permanent disability are:
due to an accident outside work 11,836,800 kr.
due to an accident at work 31,229,100 kr.
Benefits are paid in proportion to the insurance amounts, however, so that each degree of disability from 26-50% is doubled and each degree of disability from 51-100% is tripled.
The above insurance amounts are based on the consumer price index in October 2025, 661.4 points. Index-linking of benefits is limited to 3 years from the date of the accident.
Compensation amounts are published on the website of the Ministry of Finance and Economic Affairs.
If the Treasury or the employer becomes liable for damages to the insured, accident compensation under this accident insurance shall be fully deducted from any damages that he may be required to pay.
An employee who, in the course of his or her work, cares for an individual who, to a limited extent or even no extent, can be held responsible for his or her actions, has the right to direct his or her claim for compensation for bodily injury or property damage to the employer. The general rules of tort law apply to the assessment and settlement of the claim.
This chapter on accident insurance, as amended, shall be effective from the date of signature.
7.2. Luggage insurance
The luggage of employees travelling on behalf of their employer shall be insured according to the rules on luggage insurance No. 281/1988.
7.3. Personal items
If an employee verifiably suffers damage to commonly necessary clothing and items of work, such as watches, glasses, etc., it shall be compensated according to an estimate. If no agreement is reached, the damage shall be assessed by one representative from each party.
Such damages will only be compensated if they occur as a result of an accident at work. Such damages shall not be compensated if they are demonstrably caused by the negligence or carelessness of the employee.
8. Tools and work clothes
8.1. Tools
Employees are not required to provide tools unless specifically agreed upon.
8.2. Identification and protective clothing
Where uniforms are required or special protective clothing is necessary, such as work gowns, such clothing shall be provided to employees, free of charge. The same applies to protective clothing for dirty work and work that involves unusual wear and tear.
Employees shall be provided free of charge with the protective equipment required by safety regulations (such as safety shoes, ear protection, gas masks and safety helmets), as employees are obliged to use it.
Protective clothing is discussed in Appendix 1 of the collective bargaining agreement signed by the parties on April 7, 2004.
Cleaning of clothing according to Articles 8.2.1 and 8.2.2 shall be provided to the employee free of charge twice a year. Major repairs and damage to such clothing shall be compensated by the employer. Employees shall treat work clothing and protective clothing carefully and conscientiously.
If an employee resigns, he must return the last uniform he received.
These issues shall be discussed in more detail with the companies, such as the extent to which particularly heavy dirtiness during work should be taken into account, cf. Appendix 1.
8.3. Clothing allowance
It is permitted to pay an employee a clothing allowance of ISK 28 (from 1 April 2024) per hour worked. This payment replaces the allocation of general protective clothing.
From April 1, 2025 ISK 30
From April 1, 2026 ISK 31
From April 1, 2027 ISK 33
Clothing allowances increase according to phased salary increases.
The payment for each square meter of area-measured cleaning is equivalent to ISK 5.82. Then 750/156 = 4.8077. 28/4.8077 = 5.82 (valid from November 1, 2024).
In healthcare institutions where it is required, due to special treatment measures, that an employee use their own clothing instead of a work gown or similar protective clothing according to Article 8.2, the employer is instead authorized to pay the employee a special clothing allowance in the amount of ISK 4,125 per month based on full-time daytime work.
This payment shall change every three months in accordance with the change in the clothing item in the consumer price index (031 clothing) with the index for September 2025 as the base index (178.3 points based on sub-indices from 2008).
9. Replacements
9.1. Substitutes
The parties agree that, as a rule, an employee does not need to be specifically assigned to perform the duties of a supervisor unless the supervisor's absence lasts longer than 7 consecutive working days.
9.2. Paid substitute work
If the employee's main job is paid as a substitute for a supervisor, the employee is entitled to pay according to the supervisor's category if he performs the job for more than 4 consecutive weeks or if he has performed the job of a supervisor for more than 6 weeks in any 12-month period. Pay according to the supervisor's category is only paid from the end of the aforementioned 4 or 6 weeks.
9.3. Other substitutes
An employee who is not in the position of deputy supervisor, but is assigned to perform the duties of a supervisor in his absence or the duties of another higher-paid employee, shall receive a salary according to the absent employee's salary grade for the time he performs the employee's duties.
10. Educational issues
10.1. Institutional training and paid study leave
An employee who attends an educational or training course as authorized by an institution, or in accordance with the continuing education/career development plan of the relevant institution, shall retain regular wages during this time and be reimbursed for expenses in accordance with the provisions of Chapter 5.
An employee who, with the approval of the board and/or director of the relevant institution, is pursuing an approved course of study related to his or her job or is attending an approved advanced or continuing education course shall retain a fixed salary with full shift work during such study, up to three months in every three years of employment. The salary rate during study leave shall be as close as possible to the average salary during the period during which the right was earned.
It is permitted to grant shorter or longer study permits for shorter or longer periods of time.
10.2. Unpaid leave
An employee shall be entitled to unpaid leave if he is offered the opportunity and/or a grant to work on a specific project, including one related to his job. Such leave shall be taken in consultation with the head of the institution.
10.3. Development and Lifelong Learning Fund
The employer pays a monthly contribution of 0.82% of the total salary of Efling members to a special fund, the Development and Lifelong Learning Fund.
11. Institutional aspects and collaboration committees
11.1. Definition
An institutional agreement is part of a collective agreement and is intended, among other things, to promote a more efficient wage system that takes into account the needs and tasks of an institution and its employees. It is a special agreement between an institution and a trade union on the adaptation of certain aspects of the collective agreement to the needs of the institution and its employees, taking into account the nature of the activities, organization and/or other factors that give the institution a special status. Cooperation committees or committees according to Art. 11.4.1 are responsible for drawing up and amending institutional agreements.
11.2. Objectives
The parties to the collective agreement agree that their goal, by transferring the implementation of certain aspects of the collective agreement to the institution and its union/employees, is to strengthen the operations of the institution in question in the long term and thus create the basis for better working conditions for employees. Also, to bring decisions on salary setting closer to the workplace where it is possible to respond more quickly to changes that occur in the work and organization of institutions.
The goal of the institutional agreement is to strengthen collaboration between employees and managers in the workplace in order to increase the quality of public services. It also gives employees the opportunity to develop and improve in their work, thereby increasing the possibility of improved conditions.
The collaboration is intended to improve the organization's operational structure, improve the utilization of operating capital, and create a foundation for increased efficiency and a more efficient payroll system.
11.3. Conclusion of an institutional agreement
When drawing up an institutional agreement, the classification of jobs into salary groups shall be negotiated in accordance with 11.3.2.1, and the tasks and responsibilities involved in the job shall be assessed primarily, as well as the skills (skill level/specialization) required to perform the job.
A job description is one of the criteria for classifying jobs into salary groups and should be reviewed in line with the development of the job in question, and the job classification should then also be reassessed.
Personal and temporary factors shall be assessed for classification in a stress level. Such stress shall be subject to reassessment. Temporary factors may vary from time to time. The assumptions for stress factors shall be reviewed when an employee's field of work changes or after further elaboration in an institutional agreement.
When deciding on the ranking of jobs, it will generally be based on the fact that there are three factors that make up the composition of each individual's salary. The factors are:
Job scheduling.
Ranking is based on the assumption that the job is a permanent/stable field of work and the definitions of the Statistics Iceland occupational classification (now ÍSTARF95, 2nd edition) shall be taken into account. The primary assessment shall be of the tasks and responsibilities (such as management) involved in the job, as well as the skills (education/skill level/specialization) required to perform the job. Consideration shall also be given to where a particular job is located within the organization chart of the institution or other formal job structure.
Personal factors.
Pay for personal factors is permanent as it is a reward for, for example, the skills or experience of the employee in question. Examples of personal factors:
Special knowledge or skills that are useful in the job, including special professional experience that makes an employee more valuable in the job.
Market pressure or demand pressure.
Independence in working methods, initiative or good performance at work.
Increased employee skills, such as formal education or the employee's initiative in acquiring lifelong learning and knowledge that is useful in the job, such as through job-related courses. Formal studies that have been completed with a recognized degree should be particularly valued.
Length of service at an institution (reward for loyalty to the institution) or comparable institutions (reward for transfer of knowledge or practices).
Temporary factors include, for example, performance or stress due to temporary additional tasks. Examples of temporary factors:
Performance exceeding requirements and/or expectations based on predefined measurable criteria.
Temporary increased liability.
Implementation of projects.
Development and innovation.
Special stress and level of difficulty.
Working hours flexibility and adaptability.
Acquisition of new projects and ideas.
Factors according to 11.3.2.3 are only evaluated for the purpose of ranking in the stress level. Temporary factors are most often individual-related, but can also be related to groups and even group performance.
The above factors may vary from time to time and the salary increase may therefore vary. The above factors shall be reviewed when there are changes in the employee's field of work or after further elaboration in an institutional agreement.
11.4. Changed assumptions
Each party, organization or union representative may request a review of the institutional agreement if there are significant changes to its criteria. No less than every two years, an assessment shall be made as to whether the criteria for job classification have changed in such a way that there is reason to make changes to the institutional agreement.
In those institutions that do not implement the collective agreement and therefore do not have their own collaboration committee, a special committee consisting of up to 3 representatives from each party, i.e. the union/employees and the institution, shall make an agreement on changes to institutional aspects, which is subject to confirmation by the collaboration committee.
Examples of changes in criteria include changes in job classification in a central collective agreement and changes in job classification criteria at an institution and/or changes in the role or activities of an institution.
If there is a dispute about whether there is reason for changes, it shall be referred to the contracting parties, i.e. the Minister of Finance on behalf of the Treasury and Efling .
11.5. Structure and role of collaboration committees
In the state institutions that implement collective agreements on behalf of the Minister of Finance, independent collaboration committees shall be established, consisting of up to 3 representatives from each party, i.e. the union/employees and the institution, and 3 alternates. As a general rule, a shop steward at the workplace shall be in charge of the committee on behalf of Efling . The director shall appoint a representative of the institution.
The collaboration committee shall, among other things, have the role of discussing the criteria for job classification, the ranking of individual jobs in salary groups and reaching settlements in disputes that may arise from this agreement. The committee shall also discuss the ranking of jobs according to Article 25 of Act No. 94/1986, on collective agreements for public employees. In special cases where an employee does not meet the general definitions that apply to a specific job in the relevant salary group, it is permitted, by agreement in the collaboration committee, to rank him in a higher salary group.
For institutions that do not implement collective agreements, the contracting parties shall in the same manner appoint up to 3 representatives to the collaboration committee and 3 alternates. The State Finance Administration, by delegation, handles the role of the Minister of Finance for institutions that do not implement collective agreements.
11.6. Working methods of collaboration committees
Either party may refer matters of dispute to the committee and call it into action. The matter shall be addressed to the other party in writing. The other party shall attend a meeting of the collaboration committee as soon as possible, but no later than four weeks after the matter is received. The collaboration committee shall respond to matters within 5 weeks of their first formal presentation at a meeting of the committee. If the collaboration committee agrees on changes to the ranking or other matters referred to it, such changes shall apply from the beginning of the following month after the matter was first formally presented to the committee, unless otherwise specifically decided.
If an agreement is not reached in the committee within three months of the matter being considered by it, either party may request that the collaboration committee include, on the one hand, a representative from the ministry of the relevant institution and, on the other hand, a representative nominated by the relevant association.
12. Employee rights due to illness and accidents
12.1. Notifications, certificates and costs incurred
If an employee becomes unable to work due to illness or accident, he or she shall immediately notify his or her superior, who shall decide whether a medical certificate shall be required and whether it shall be from the institution's medical officer. A medical certificate may be required from an employee for incapacity for work whenever the institution's director/supervisor deems it necessary.
If an employee is absent from work due to illness or accident for more than 5 consecutive working days, he must prove his incapacity for work with a medical certificate. In the case of repeated absences of an employee, he must prove his incapacity for work with a medical certificate, after further determination by the manager/supervisor.
If an employee is unable to work due to illness or accident for a long period of time, he or she must renew his or her medical certificate at the discretion of the manager/supervisor, but not less frequently than monthly. However, an exemption from this may be granted at the recommendation of a medical officer if he or she believes that a longer period of sick leave will be required.
An employee who is unable to work due to illness or accident is required to undergo any normal and approved medical examination that a medical officer may deem necessary in order to determine whether the absence is legitimate, provided that the costs of the doctor's appointment and necessary medical examinations are paid by the employer.
The employee shall be reimbursed for the fee for medical certificates required under Articles 12.1.1-12.1.4. The same applies to an interview with a doctor to obtain a certificate.
The employer pays the employee the expenses that the employee has incurred as a result of an accident at work and that are not covered by social security accident insurance, according to Article 32 of Act No. 100/2007 on social security.
12.2. Right to wages due to illness and accidents
An employee who is employed on a monthly salary according to Art. 1.1.1 of the collective agreement for at least 2 months shall retain his salary according to Art. 12.2.6 - 12.2.7 as long as his sick days, counted in calendar days, do not exceed the following in any 12 months:
Working hours Number of days
0- 3 months on the job 14 days
Next 3 months of work 35 days
After 6 months on the job 119 days
After 1 year on the job 133 days
After 7 years of employment 175 days
In addition to the above-mentioned right, there is also the right to monthly wages according to Art. 1.1.1 of the collective agreement for 13 weeks or 91 days if the incapacity for work is due to an accident at work or occupational disease. This wage is not supplemented by payments according to Art. 12.2.6-12.2.7.
Working hours Number of days
After 12 years of employment 273 days
After 18 years of employment 360 days
However, wages are not paid for longer than the intended duration of the employment, except in the case of an occupational accident, in which case the employee continues to receive payments until he is deemed fit to work or he exhausts his right to wages, whichever comes first.
An employee who is employed on a part-time basis, cf. however, Art. 12.2.3, or is employed for less than 2 months, shall retain his salary according to Art. 12.2.6 - 12.2.7 as long as his sick days, counted in calendar days, do not exceed the following in any 12 months:
Working hours Number of days
During the first month of employment 2 days
In the 2nd month of employment 4 days
In the 3rd month of employment 6 days
After 3 months on the job 14 days
After 6 months of employment 30 days
In addition to the above entitlement, there is also the right to daily wages for 13 weeks or 91 days if the incapacity for work is due to an accident at work or an occupational disease. This wage is not supplemented by payments pursuant to Articles 12.2.6-12.2.7.
However, wages are not paid for longer than the intended duration of the employment, except in the case of an occupational accident, in which case the employee continues to receive payments until he is deemed fit to work or he exhausts his right to wages, whichever comes first.
The right of pensioners in part-time work, or other types of work, to wages due to incapacity for work due to illness or accident shall be 1 month in every 12 months. Wages during illness shall be based on the average daily wage for the last 3 months before the illness.
However, wages are not paid for longer than the duration of the employment.
An employee who performs his/her work duties irregularly or in a manner other than that of a day worker in regular work shall be considered to have been absent for one week when he/she has been unable to work due to illness or accident equal to his/her weekly work duties and proportionally in the case of shorter or longer absence due to incapacity.
When assessing an employee's entitlement to accrued benefits pursuant to Article 12.2.1, in addition to years of service with the relevant employer, years of service with state institutions, municipalities and non-profit organizations that are funded for the most part by public funds shall also be taken into account.
During the first 3 months of continuous employment, however, previous seniority under this article shall not be assessed unless the employee in question has had continuous seniority with the aforementioned employers for 12 months or more.
During the first week of absence due to illness or accident or the time corresponding to one week of the employee's work obligation, in addition to the monthly salary according to Article 1.1.1 of the collective agreement, fixed payments such as for overtime, shift incentives, shift, on-call and inconvenience surcharges and payments for gaps in working hours are paid, provided that this involves pre-determined working hours according to regular shifts or the employee's regular work that has lasted for 12 calendar months or longer or is intended to last at least that long.
After the first week of absence due to illness or accident or the time corresponding to one week of an employee's work obligation, he shall, in addition to the wages paid pursuant to Article 12.2.6, be paid the average of the overtime hours and adjustment fees pursuant to Article 2.6.2 that he was paid during the last 12 monthly overtime settlement periods or the last 12 complete calendar months. When calculating overtime hours pursuant to this Article, the overtime hours paid pursuant to Article 12.2.6 shall not be included.
An employee of a school or other institution where normal operations are suspended for part of the year shall, instead of this rule, only receive paid overtime other than that specified in Article 12.2.6 during the months in which normal operations are carried out, and the number of overtime hours shall be determined by finding the monthly average of the incidental overtime hours that he received paid for during the last 9 full months of operation of the institution or the corresponding period if the number of months of operation is fewer or more.
If an employee is absent due to vacation during a reference period according to Article 12.2.7, he shall be considered to have the same average overtime during the vacation days as during the other part of the period.
If an employee becomes incapacitated due to an accident at work or on the normal way to or from work, wages will be paid according to Article 12.2.7 from the beginning of the absence.
If an employee, on medical advice and with the permission of the manager, works reduced hours due to an accident or illness, the payment of sick pay for daytime work shall be based on the working hours required to perform full-time work.
12.3. Certificate of professional competence
An employee who has been unable to work due to illness or accident for 1 month or more continuously may not resume work unless a doctor certifies that his health permits him to do so. A certificate from the confidential physician of the relevant institution may be required.
12.4. Dismissal from employment due to repeated or prolonged incapacity for work due to illness or accident
If an employee is unable to work due to illness or accident for several months each year for a period of five years and it is not clearly certified in accordance with the provisions of Article 12.3.1 that he has received health benefits that can be expected to be permanent, he may be dismissed from his job due to ill health.
When an employee has been continuously absent from work due to illness or accident without pay for a period equal to the period for which he was entitled to retain his salary during his absence according to Article 12.2.1, he may be dismissed from his job due to ill health.
The above provisions on sick and accident absences shall not prevent an employee from resigning at his/her request if, according to a medical certificate, he/she has become permanently unable to perform his/her duties due to ill health. A certificate from the institution's medical officer may be required.
12.5. Severance pay and wages to the spouse of a deceased employee
When an employee is dismissed from employment pursuant to Articles 12.4.1-12.4.3, he shall retain his fixed salary pursuant to Article 12.2.6 for 3 months.
The same applies to payments for a deceased employee if the deceased was married, in a registered partnership, in a registered cohabitation or in a cohabitation that can otherwise be equated to marriage within the meaning of Article 37 of the Social Security Act No. 100/2007.
When an employee is granted a release pursuant to Articles 12.4.1-12.4.3 or dies, his salary shall be paid, as otherwise would have been the case, until the end of the month of release or death before salary pursuant to Articles 12.5.1 -12.5.2 is taken into consideration. However, this does not apply if salary payments have previously ended, for example because the right to sick pay pursuant to Articles 12.2.1-12.2.10 was exhausted.
12.6. Registration of sick days
A record of an employee's sick days shall be kept at each institution. If an employee transfers between jobs, his sick days in both jobs shall be added together as appropriate.
12.7. Illness and accident-related absences during maternity leave
An employee's sick leave during maternity leave does not count as sick leave and the employee is not entitled to wages in cases of illness or accident during that time.
12.8. Illness of children under 13 years of age
A parent/guardian has the right to be absent from work for a total of 12 working days (86.4) working hours based on full-time work) per calendar year due to the illness of their children under the age of 13, provided that other care is not possible. During these absences, the employee shall be paid daily wages and shift allowance according to the regular duty roster/shift schedule. This right does not affect the employee's rights under other articles.
12.9. Welfare and Sickness Fund, Vocational Rehabilitation Fund
The employer pays a monthly contribution to Efling support and health fund amounting to 0.75% of the employee's total salary.
The employer's contribution to the Occupational Rehabilitation Fund shall amount to 0.13% of the total salary of members.
However, the contributions of employers and those engaged in independent activities and pension funds to the vocational rehabilitation fund shall be 0.10% of the contribution base for the years 2016 and 2017 in accordance with the provisions of Article 33 of Act No. 124/2015
12.10. Disputes
If a dispute arises regarding the interpretation of this chapter, the opinion of a special consultation committee on sick leave rights shall be sought and shall be taken into account in the parties' collaboration committee.
13. Maternity leave arrangements
13.1. Scope
This section applies to a parent who is employed at least 25% of the time and has worked for 6 consecutive months prior to the birth of their child for the relevant employer and has valid employment at the start of the leave.
13.2. Legal status of employees on maternity leave
The accumulation and protection of rights during maternity leave is governed by Article 14 of Act No. 95/2000, on Maternity and Parental Leave.
An employee who has taken maternity leave is, according to the above, considered to be released from work obligations during his or her maternity leave, cf. Article 29 of the above-mentioned Act.
An employee on maternity leave is entitled to payment of summer leave, personal allowance and holiday allowance
13.3. Maternity care and artificial insemination
Pregnant women are entitled to necessary absences from work for antenatal check-ups and shall retain the right to payment of daily wages and, where applicable, shift allowance according to a regular shift schedule (such as due to a child's illness), if such check-ups need to take place during working hours.
Employees who need to be absent due to artificial insemination retain the right to be paid their daily wages and, where applicable, shift allowance according to the regular shift schedule (such as due to a child's illness) for up to 15 working days. The employee must submit a certificate from the relevant doctor.
14. Pension fund payments and additional contributions to pension savings
14.1. Pension fund payments
An employee, 16 years of age and older, shall pay 4% of their total salary into the pension fund of the relevant union.
The employer's matching contribution shall be 11.5%. This matching contribution is based on the following assumptions: That there will be no changes to the public sector pension system and if actuarial assumptions lead to a change in the matching contribution at the State Employees' Pension Fund, then the matching contribution according to this article will change in the same way.
14.2. Additional contribution to pension savings
In cases where an employee makes an additional contribution to a private pension fund, the employer makes a matching contribution of up to 2% against the employee's 2% contribution.
15. Pay slip, membership fees and salary scales
15.1. Payslip
When paying wages to an employee, he is entitled to receive a pay slip marked with his name. The pay slip shall state the employee's fixed salary for the period covered by the payment, the number of overtime hours, the accumulation of time off entitlement and a breakdown of individual income and deductions that result in the amount of wages paid.
15.2. Membership fees
The employer undertakes to withhold membership fees from the employee's wages to the relevant member association and to submit a monthly report to the association. Membership fees shall be a percentage of the employee's total salary. Changes to the percentage of membership fees shall be notified to the employer in writing at least 4 weeks before they become effective in the payroll system. Changes are based on the end of the month.
15.3. Salary scales
The State Financial Administration, on behalf of the Ministry of Finance, calculates the salary tables resulting from this agreement. They shall be sent to Efling for comment before they are published in the state's payroll system.
16. Social issues
16.1. Right of priority
Efling members shall have priority for employment in the positions covered by this agreement, provided that the company is always open to people who apply and meet the general entry requirements according to the company's articles of association.
The representative of an organization shall always have free choice as to which Efling members are hired.
16.2. Trustees
16.2.1 Election of trustees
Employees are permitted to elect 1 shop steward at each workplace with 5-50 employees and 2 shop stewards if there are more than 50 employees. After the election, the relevant trade union shall nominate the shop stewards. If an election is not possible, shop stewards shall be nominated by the company.
Trustees shall not be elected or nominated for a term longer than two years at a time.
16.3. The duties of trustees
Shop stewards at a workplace shall, in consultation with superiors, be permitted to devote, as necessary, time to tasks that may be assigned to them by employees at the workplace in question and/or the relevant member association in connection with their work as shop stewards, and their salaries shall not be reduced as a result.
Data to which shop stewards have access Shop stewards shall be permitted, in connection with a matter of dispute, to review data and work reports relating to the matter of dispute.
In addition, a shop steward may, on his own initiative, request information about the wages and working conditions of foreign employees if he believes that the provisions of the collective agreement are not being complied with. If a shop steward is not present, a union employee may request the information on his behalf.
All information obtained on the basis of this article shall be treated as confidential.
16.3.1 Facilities for shop stewards
Shop stewards at the workplace shall have access to a locked storage room and access to a telephone in consultation with superiors.
16.3.2 Complaints from shop stewards
Shop stewards shall raise employee complaints with the immediate superior or another representative of the institution before contacting other parties.
16.4. Workplace meetings
Shop stewards at each institution shall be authorized to call a meeting with employees twice a year during working hours at the workplace. The meetings shall begin one hour before the end of daytime working hours, as far as possible. The meetings shall be called in consultation with the relevant member association and representatives of the institution with three days' notice unless the subject of the meeting is very urgent and directly related to problems at the workplace. In such cases, one day's notice shall suffice. The employees' wages shall not be reduced for this reason during the first hour of the meeting.
16.5. Congress, meetings, conferences and courses
Shop stewards shall be permitted to attend assemblies, meetings, conferences and courses organised by the relevant trade union for up to one week once a year without reduction in regular salary. The same applies to members of the company's board of directors. Such absences shall be notified to the superior at least one week in advance.
16.6. Collective bargaining work
Members elected to the bargaining committee or election committee of the relevant union shall be permitted to perform that task without reduction in regular pay. Such absences shall be reported to the supervisor with reasonable notice.
16.7. Protection of shop stewards at work
Shop stewards shall not in any way require the superiors of an institution to submit complaints on behalf of employees.
It is prohibited to terminate the employment of shop stewards because of their work as shop stewards or to make them pay in any other way for having been assigned by the relevant trade union to perform shop steward duties on their behalf.
16.8. Shop steward course
Shop stewards in the workplace shall be given the opportunity to attend courses aimed at making them more competent in their work. Those who attend the courses shall retain their regular salary for up to one week per year. In institutions with more than 15 members, shop stewards shall retain their regular salary for up to two weeks in the first year. This applies to one shop steward per year in each institution if there are 5-50 members in employment, and to two shop stewards if there are more than 50 members. The courses shall be recognized by the contracting parties.
If a shop steward course is organized so that the shop steward's absence from work does not exceed one day per week, shop stewards retain their regular salary for up to ten working days per year.
If a shop steward attends a full-day course, he or she will not be required to work that day. In all cases, the head of the institution must be notified with reasonable notice of absences due to courses.
17. Notice period
17.1. Notice period for an indefinite employment contract
17.1.1 Termination during the probationary period
The mutual notice period during the probationary period (which is three months unless otherwise agreed in the relevant employment contract) is one month.
17.1.2 Termination after the probationary period
The mutual notice period after the trial period is 3 months.
17.1.3 Notice period after ten years of continuous employment
If an employee is terminated after at least 10 years of continuous employment with the same organization, the notice period is as follows:
However, an employee can terminate their employment with three months' notice.
17.2. Notice period for part-time and temporary employees
Temporary employment terminates without notice at the end of the contract period. The employment of an employee who is hired on a temporary basis terminates at the end of the contract period without notice. If either party wishes to terminate the employment relationship earlier, the following provisions apply.
17.2.1 Notice period in the first three months
The mutual notice period for regular employment during the first 3 months of employment shall be one week based on the weekly shift. The weekly shift is based on Friday.
17.2.2 Notice period after 3 months
After three months of continuous employment, the mutual notice period shall be one month.
17.3. Notice period for irregular employees
Employees who are hired irregularly for a longer or shorter period of time do not have a specific notice period during the first month, but one week thereafter.
17.4. Form of termination
Termination must be in writing and is effective at the end of the month unless the mutual notice period is less than 1 month. If so, termination shall be effective at the end of the week.
Excerpt from Chapter IX of Act No. 70/1996, on the Rights and Obligations of State Employees, regarding retirement:
Article 43.
The head of an institution has the right to dismiss an employee as provided for in the employment contract. The employment of an employee who is employed temporarily pursuant to the second paragraph of Article 41 shall terminate at the end of the contract period without notice. However, an employee shall always be dismissed from his or her employment as of the beginning of the month following his or her reaching the age of 70.
Article 44.
It is mandatory to give an employee a warning in accordance with Article 21 and to give him an opportunity to improve his performance before he is dismissed if the dismissal is due to reasons stated therein. Otherwise, it is not mandatory to give the employee the opportunity to express his opinion on the reasons for the dismissal before it takes effect, including if the dismissal is due to other reasons, such as the fact that the number of employees is being reduced due to rationalization in the operation of an institution. If the employee requests it, the dismissal shall be justified in writing. If it is due to reasons stated in Article 21, it may be submitted to the relevant minister.
Article 21.
If an employee has shown tardiness or other negligence in his work, disobedience to a lawful order or prohibition of his superior, incompetence or inefficiency in his work, has not achieved satisfactory results in his work, has been intoxicated on the job, or his conduct or actions on or off the job are otherwise considered indecent, inappropriate or incompatible with the job, the director of the institution shall give him a written warning. However, the employee shall first be given the opportunity to speak his mind if possible.
18. Validity period, voting and contract conditions
18.1. Validity period
The parties' current collective bargaining agreement is extended from November 1, 2024, to March 31, 2028, with the amendments and reservations contained in this agreement, and will then expire without further notice.
18.2. Voting and contract conditions
This collective agreement follows collective agreements in the general labor market in March 2024. In the event that the wage and conditions committee of ASÍ and SA decides on wage or conditions changes due to a lack of conditions, the parties shall enter into negotiations on how such changes shall apply to this agreement. Such changes shall result in wage changes comparable to those in the general labor market, provided that they do not involve changes to terms already contained in the parties' collective labor agreement.
In the event that collective agreements in the general market are terminated on the basis of their preconditions during the validity period of this agreement, either party may terminate this agreement with three months' notice, based on the end of the month.
The parties shall submit this agreement for approval, together with the minutes and supporting documents. If the other party has not received notification of the outcome by 16:00 on September 18, 2024, it shall be deemed approved.
19. Protocols by agreement between the Minister of Finance and Economic Affairs on behalf of the Treasury and Efling Trade Union on 29 August 2024
19.1. Protocol 1
Because of the back-up
The parties agree to appoint a working group to review the arrangements for standby duty and related calls. The group shall include representatives of public employers and public employee unions, as well as representatives of trade unions that may be relevant to the matter.
The working group will map the extent of on-call duty, examine the frequency and types of calls, and work to improve on-call duty statistics. The work will include examining how on-call leave is taken and whether there are certain groups that are not receiving on-call leave.
The group shall then analyze and assess whether it is feasible for standby duty to become a work obligation in parallel with the cancellation of standby duty leave according to Article 2.5.4.
No later than 1 October 2024, the parties shall have appointed their representatives to the working group and the employee representatives shall convene the first meeting. The working group shall further define the subject matter and procedures. The aim shall be to have proposals available no later than 31 May 2025.
19.2. Protocol 2 – Due to the cancellation of Article 3.2 (Meal and coffee breaks during overtime)
Notwithstanding the repeal of Article 3.2, the parties to the agreement agree that those individuals and/or work groups who had meal and coffee breaks during overtime as part of the work structure before the entry into force of the collective agreement signed in 2024 and who have generally received such payments on a regular basis shall retain comparable payments, cf. the following. Changes shall not result in a reduction in wages and equality within work groups shall be observed.
3.2.1 If overtime is worked, meal times shall be 1 hour. at 19:00 - 20:00 in the evening, at 03:00 - 04:00 at night and during the period 11:30 - 13:30 on holidays according to Art.2.1.4. These meal times during overtime periods are considered working hours.
3.2.2 If overtime or an additional shift is worked, coffee breaks shall be at 21:00-21:20, 24:00-00:20, 05:40-06:00 and the last 15 minutes before the end of the day's work. Coffee and meal breaks during overtime during the period 08:00-17:00 shall be the same as during day work.
19.3. Protocol 3 – Regarding shifts and attendance systems
It is important that the state's shift and attendance system takes into account the different activities and needs of institutions, different jobs and working time arrangements of employees, and that the systems are user-friendly. When organizing shifts, it is necessary to promote better working hours, ensure the needs of the operation and equality within the employee group, as well as take into account the wishes of employees if this is possible due to the operation. Predictability, safety and health of employees must be ensured in order to promote a balance between work and private life. The parties agree that, in parallel with the implementation of new shift and attendance systems, which are being developed, an educational initiative will be launched regarding the use and utilization of the systems.
19.4. Protocol 4 – Steering Group on Better Working Hours
If the changes to better working hours on June 10, 2024 do not achieve the intended goals or if there are issues regarding the interpretation of the changes, a steering group of the parties who signed the changes shall discuss the matter and find a solution. The steering group will operate for the duration of the agreement, 2024-2028.
The guidelines and, where applicable, the issues that the steering group issued in 2021 in conjunction with the implementation of "Better Working Hours" remain valid as applicable. The steering group will meet in September 2024 and update the guidelines and, where applicable, the issues that were addressed in the collective agreements in 2024
19.5. Protocol 5 – Issuance of a comprehensive collective agreement
The parties agree to incorporate the text of this agreement into the full text of the collective agreement and, where appropriate, to remove provisions that are no longer applicable. This work shall be completed by October 31, 2024.
19.6. Protocol 6 – Procedures for expenses incurred for antiparasitic drug treatment
The parties agree that it is necessary to ensure that employees do not bear the cost of necessary anti-parasitic medication when an infection occurs in the workplace.
19.7. Protocol 7 – Vocational Training Fund
The State agrees to be a party to a discussion on the consideration of the merger of the three vocational training funds of which Efling is a member and which are for members of the public labour market. This work shall be completed by 31 October 2024.
20. The following protocols, agreed upon by the Minister of Finance and Economic Affairs on behalf of the Treasury and Efling Trade Union on March 7, 2020, remain in force.
March 7, 2020 – remain in effect
20.1. Booking 1 – 55 years of age and night shifts
The parties agree that the provisions of the collective agreement that exempt employees who have reached the age of 55 from night shifts and/or back shifts, if they so wish, do not constitute a violation of Act No. 86/2018, on Equal Treatment in the Labor Market. The same applies to provisions on a longer notice period for employees aged 55 and older who have worked for at least 10 consecutive years at the same institution.
In certain circumstances, differences in treatment on grounds of age may be justified when justified by objective reasons justified by a legitimate aim, including employment policy or other objectives relating to the labour market, subject to proportionality. Collective agreement-based provisions on exemption from night and back shifts after a certain age take into account the view that research has shown that it becomes more difficult for workers to perform night shifts as they age, as it takes longer to recover physically due to the interaction between working arrangements, sleep and circadian rhythms. Provisions on longer notice periods with increasing age are based on the view that when retirement is imminent, workers may have more difficulty finding suitable alternative employment. The European Court of Justice has given Member States some latitude to decide which objectives should be pursued and which measures are appropriate to achieve that objective. The Parties agree that the objectives behind these provisions are objective and do not go beyond what is necessary.
20.2. Protocol 5 – Hourly wage
Article 1.3.2 of the parties' collective agreement stipulates the employer's authority to pay hourly wages in limited circumstances. This authority is an exception to the general principle that employees shall be employed for an indefinite period and be paid a monthly wage.
The parties agree to jointly review the use of this authority by government agencies in Article 1.3.2, in particular with the aim of examining whether agencies are properly complying with the conditions set for the payment of hourly wages. Following this review, the parties will agree on guidelines for agencies on the payment of hourly wages. A working group, consisting of two representatives from the State Compensation and Human Resources Administration and two from the employees' organizations, shall begin work in November 2020 and it is expected that the guidelines will be available in early March 2021.
20.3. Protocol 6 – Accident insurance
The parties agree that there is reason to evaluate Rules No. 30/1990 and No. 31/1990 on the terms of accident insurance for state employees according to collective agreements for accidents that employees suffer on the job, on the one hand, and outside of work, on the other, and, as the case may be, to review them. There may be reason to update them in light of the changed legal and insurance environment, but the Rules are somewhat outdated. There is also reason to clarify terms and various other issues that have been considered unclear or likely to cause misunderstanding. This work shall be completed during the term of the agreement.
Attachment – Salary tables valid during the contract period
Attachment to the agreement between the Minister of Finance and Economic Affairs on behalf of the Treasury
on the one hand
and
Efling - trade union
on the other hand
dated 29 August 2024
Salary scales valid during the contract period.
Salary scale valid from April 1, 2024
0
1
2
3
4
5
6
7
8
…
5
438.235
449.191
460.147
471.103
482.059
493.014
503.970
514.926
525.882
6
446.782
457.952
469.121
480.291
491.460
502.630
513.799
524.969
536.138
7
454.261
465.618
476.974
488.331
499.687
511.044
522.400
533.757
545.113
8
462.247
473.803
485.359
496.916
508.472
520.028
531.584
543.140
554.696
9
470.426
482.187
493.947
505.708
517.469
529.229
540.990
552.751
564.511
10
478.801
490.771
502.741
514.711
526.681
538.651
550.621
562.591
574.561
11
487.376
499.560
511.745
523.929
536.114
548.298
560.482
572.667
584.851
12
496.156
508.560
520.964
533.368
545.772
558.176
570.579
582.983
595.387
13
505.147
517.776
530.404
543.033
555.662
568.290
580.919
593.548
606.176
14
514.353
527.212
540.071
552.929
565.788
578.647
591.506
604.365
617.224
15
523.469
536.556
549.642
562.729
575.816
588.903
601.989
615.076
628.163
16
532.407
545.717
559.027
572.338
585.648
598.958
612.268
625.578
638.888
17
541.000
554.525
568.050
581.575
595.100
608.625
622.150
635.675
649.200
18
548.155
561.859
575.563
589.267
602.971
616.674
630.378
644.082
657.786
19
558.992
572.967
586.942
600.916
614.891
628.866
642.841
656.816
670.790
20
570.096
584.348
598.601
612.853
627.106
641.358
655.610
669.863
684.115
21
581.475
596.012
610.549
625.086
639.623
654.159
668.696
683.233
697.770
22
593.133
607.961
622.790
637.618
652.446
667.275
682.103
696.931
711.760
23
604.457
619.568
634.680
649.791
664.903
680.014
695.126
710.237
725.348
24
616.009
631.409
646.809
662.210
677.610
693.010
708.410
723.811
739.211
25
627.791
643.486
659.181
674.875
690.570
706.265
721.960
737.654
753.349
26
639.809
655.804
671.799
687.795
703.790
719.785
735.780
751.776
767.771
27
652.067
668.369
684.670
700.972
717.274
733.575
749.877
766.179
782.480
28
664.570
681.184
697.799
714.413
731.027
747.641
764.256
780.870
797.484
29
677.323
694.256
711.189
728.122
745.055
761.988
778.921
795.855
812.788
30
690.982
708.257
725.531
742.806
760.080
777.355
794.629
811.904
829.178
31
704.928
722.551
740.174
757.798
775.421
793.044
810.667
828.290
845.914
32
718.489
736.451
754.413
772.376
790.338
808.300
826.262
844.225
862.187
33
732.320
750.628
768.936
787.244
805.552
823.860
842.168
860.476
878.784
34
746.429
765.090
783.750
802.411
821.072
839.733
858.393
877.054
895.715
35
761.357
780.391
799.425
818.459
837.493
856.527
875.561
894.594
913.628
36
776.755
796.174
815.593
835.012
854.431
873.849
893.268
912.687
932.106
37
793.272
813.104
832.936
852.767
872.599
892.431
912.263
932.095
951.926
38
810.198
830.453
850.708
870.963
891.218
911.473
931.728
951.983
972.238
39
827.541
848.230
868.918
889.607
910.295
930.984
951.672
972.361
993.049
40
845.313
866.446
887.579
908.711
929.844
950.977
972.110
993.243
1.014.376
41
863.813
885.409
907.004
928.599
950.195
971.790
993.385
1.014.981
1.036.576
42
883.080
905.157
927.234
949.311
971.388
993.465
1.015.542
1.037.619
1.059.696
43
902.823
925.394
947.964
970.535
993.105
1.015.676
1.038.247
1.060.817
1.083.388
44
923.052
946.128
969.204
992.281
1.015.357
1.038.433
1.061.510
1.084.586
1.107.662
45
943.782
967.377
990.972
1.014.566
1.038.161
1.061.755
1.085.350
1.108.944
1.132.539
Salary scale valid from April 1, 2025
0
1
2
3
4
5
6
7
8
…
5
461.985
473.535
485.084
496.634
508.184
519.733
531.283
542.832
554.382
6
470.532
482.295
494.059
505.822
517.585
529.349
541.112
552.875
564.638
7
478.011
489.961
501.912
513.862
525.812
537.762
549.713
561.663
573.613
8
485.997
498.147
510.297
522.447
534.597
546.747
558.897
571.046
583.196
9
494.176
506.530
518.885
531.239
543.594
555.948
568.302
580.657
593.011
10
502.551
515.115
527.679
540.242
552.806
565.370
577.934
590.497
603.061
11
511.126
523.904
536.682
549.460
562.239
575.017
587.795
600.573
613.351
12
519.906
532.904
545.901
558.899
571.897
584.894
597.892
610.890
623.887
13
528.897
542.119
555.342
568.564
581.787
595.009
608.232
621.454
634.676
14
538.103
551.556
565.008
578.461
591.913
605.366
618.818
632.271
645.724
15
547.219
560.899
574.580
588.260
601.941
615.621
629.302
642.982
656.663
16
556.157
570.061
583.965
597.869
611.773
625.677
639.581
653.484
667.388
17
564.750
578.869
592.988
607.106
621.225
635.344
649.463
663.581
677.700
18
571.905
586.203
600.500
614.798
629.096
643.393
657.691
671.988
686.286
19
582.742
597.311
611.879
626.448
641.016
655.585
670.153
684.722
699.290
20
593.846
608.692
623.538
638.384
653.231
668.077
682.923
697.769
712.615
21
605.225
620.356
635.486
650.617
665.748
680.878
696.009
711.139
726.270
22
616.883
632.305
647.727
663.149
678.571
693.993
709.415
724.838
740.260
23
628.207
643.912
659.617
675.323
691.028
706.733
722.438
738.143
753.848
24
639.759
655.753
671.747
687.741
703.735
719.729
735.723
751.717
767.711
25
651.541
667.830
684.118
700.407
716.695
732.984
749.272
765.561
781.849
26
663.559
680.148
696.737
713.326
729.915
746.504
763.093
779.682
796.271
27
675.817
692.712
709.608
726.503
743.399
760.294
777.190
794.085
810.980
28
688.320
705.528
722.736
739.944
757.152
774.360
791.568
808.776
825.984
29
701.073
718.600
736.127
753.653
771.180
788.707
806.234
823.761
841.288
30
715.166
733.046
750.925
768.804
786.683
804.562
822.441
840.320
858.200
31
729.600
747.840
766.081
784.321
802.561
820.801
839.041
857.281
875.521
32
743.636
762.227
780.818
799.409
818.000
836.591
855.182
873.772
892.363
33
757.951
776.900
795.849
814.798
833.746
852.695
871.644
890.593
909.541
34
772.554
791.868
811.182
830.496
849.809
869.123
888.437
907.751
927.065
35
788.004
807.705
827.405
847.105
866.805
886.505
906.205
925.905
945.605
36
803.941
824.040
844.138
864.237
884.336
904.434
924.533
944.631
964.730
37
821.037
841.562
862.088
882.614
903.140
923.666
944.192
964.718
985.244
38
838.555
859.519
880.483
901.447
922.410
943.374
964.338
985.302
1.006.266
39
856.505
877.918
899.330
920.743
942.155
963.568
984.981
1.006.393
1.027.806
40
874.899
896.771
918.644
940.516
962.389
984.261
1.006.134
1.028.006
1.049.879
41
894.047
916.398
938.749
961.100
983.451
1.005.803
1.028.154
1.050.505
1.072.856
42
913.987
936.837
959.687
982.537
1.005.386
1.028.236
1.051.086
1.073.935
1.096.785
43
934.422
957.783
981.143
1.004.504
1.027.864
1.051.225
1.074.585
1.097.946
1.121.306
44
955.359
979.243
1.003.127
1.027.011
1.050.895
1.074.779
1.098.663
1.122.546
1.146.430
45
976.815
1.001.235
1.025.656
1.050.076
1.074.496
1.098.917
1.123.337
1.147.757
1.172.178
Salary scale valid from 1 April 2026
0
1
2
3
4
5
6
7
8
…
5
485.735
497.878
510.022
522.165
534.309
546.452
558.595
570.739
582.882
6
494.282
506.639
518.996
531.353
543.710
556.067
568.424
580.781
593.138
7
501.761
514.305
526.849
539.393
551.937
564.481
577.025
589.569
602.113
8
509.747
522.491
535.234
547.978
560.722
573.465
586.209
598.953
611.696
9
517.926
530.874
543.822
556.770
569.719
582.667
595.615
608.563
621.511
10
526.301
539.459
552.616
565.774
578.931
592.089
605.246
618.404
631.561
11
534.876
548.248
561.620
574.992
588.364
601.736
615.107
628.479
641.851
12
543.656
557.247
570.839
584.430
598.022
611.613
625.204
638.796
652.387
13
552.647
566.463
580.279
594.096
607.912
621.728
635.544
649.360
663.176
14
561.853
575.899
589.946
603.992
618.038
632.085
646.131
660.177
674.224
15
570.969
585.243
599.517
613.792
628.066
642.340
656.614
670.889
685.163
16
579.907
594.405
608.902
623.400
637.898
652.395
666.893
681.391
695.888
17
588.500
603.213
617.925
632.638
647.350
662.063
676.775
691.488
706.200
18
595.655
610.546
625.438
640.329
655.221
670.112
685.003
699.895
714.786
19
606.492
621.654
636.817
651.979
667.141
682.304
697.466
712.628
727.790
20
617.596
633.036
648.476
663.916
679.356
694.796
710.235
725.675
741.115
21
628.975
644.699
660.424
676.148
691.873
707.597
723.321
739.046
754.770
22
640.633
656.649
672.665
688.680
704.696
720.712
736.728
752.744
768.760
23
651.957
668.256
684.555
700.854
717.153
733.452
749.751
766.049
782.348
24
663.509
680.097
696.684
713.272
729.860
746.448
763.035
779.623
796.211
25
675.291
692.173
709.056
725.938
742.820
759.702
776.585
793.467
810.349
26
687.309
704.492
721.674
738.857
756.040
773.223
790.405
807.588
824.771
27
699.567
717.056
734.545
752.035
769.524
787.013
804.502
821.991
839.480
28
712.411
730.221
748.032
765.842
783.652
801.463
819.273
837.083
854.893
29
725.611
743.751
761.891
780.031
798.172
816.312
834.452
852.592
870.733
30
740.197
758.702
777.207
795.712
814.217
832.722
851.227
869.732
888.237
31
755.136
774.015
792.893
811.772
830.650
849.529
868.407
887.285
906.164
32
769.663
788.905
808.147
827.388
846.630
865.871
885.113
904.354
923.596
33
784.479
804.091
823.703
843.315
862.927
882.539
902.151
921.763
941.375
34
799.593
819.583
839.573
859.563
879.553
899.543
919.532
939.522
959.512
35
815.585
835.974
856.364
876.754
897.143
917.533
937.922
958.312
978.702
36
832.079
852.881
873.683
894.485
915.287
936.089
956.891
977.693
998.495
37
849.773
871.017
892.261
913.506
934.750
955.994
977.239
998.483
1.019.727
38
867.904
889.602
911.300
932.997
954.695
976.392
998.090
1.019.788
1.041.485
39
886.483
908.645
930.807
952.969
975.131
997.293
1.019.455
1.041.617
1.063.779
40
905.520
928.158
950.796
973.434
996.072
1.018.710
1.041.348
1.063.986
1.086.625
41
925.338
948.472
971.605
994.739
1.017.872
1.041.006
1.064.139
1.087.273
1.110.406
42
945.977
969.626
993.276
1.016.925
1.040.575
1.064.224
1.087.874
1.111.523
1.135.172
43
967.127
991.305
1.015.483
1.039.661
1.063.839
1.088.018
1.112.196
1.136.374
1.160.552
44
988.796
1.013.516
1.038.236
1.062.956
1.087.676
1.112.396
1.137.116
1.161.836
1.186.556
45
1.011.003
1.036.278
1.061.554
1.086.829
1.112.104
1.137.379
1.162.654
1.187.929
1.213.204
Salary scale valid from 1 April 2027
0
1
2
3
4
5
6
7
8
…
5
509.485
522.222
534.959
547.696
560.434
573.171
585.908
598.645
611.382
6
518.032
530.983
543.934
556.884
569.835
582.786
595.737
608.688
621.638
7
525.511
538.649
551.787
564.924
578.062
591.200
604.338
617.475
630.613
8
533.497
546.834
560.172
573.509
586.847
600.184
613.522
626.859
640.196
9
541.676
555.218
568.760
582.302
595.844
609.386
622.927
636.469
650.011
10
550.051
563.802
577.554
591.305
605.056
618.807
632.559
646.310
660.061
11
558.626
572.592
586.557
600.523
614.489
628.454
642.420
656.386
670.351
12
567.406
581.591
595.776
609.961
624.147
638.332
652.517
666.702
680.887
13
576.397
590.807
605.217
619.627
634.037
648.447
662.857
677.266
691.676
14
585.603
600.243
614.883
629.523
644.163
658.803
673.443
688.084
702.724
15
594.719
609.587
624.455
639.323
654.191
669.059
683.927
698.795
713.663
16
603.657
618.748
633.840
648.931
664.023
679.114
694.206
709.297
724.388
17
612.250
627.556
642.863
658.169
673.475
688.781
704.088
719.394
734.700
18
619.405
634.890
650.375
665.860
681.346
696.831
712.316
727.801
743.286
19
630.242
645.998
661.754
677.510
693.266
709.022
724.778
740.534
756.290
20
641.346
657.380
673.413
689.447
705.481
721.514
737.548
753.582
769.615
21
652.725
669.043
685.361
701.679
717.998
734.316
750.634
766.952
783.270
22
664.383
680.993
697.602
714.212
730.821
747.431
764.040
780.650
797.260
23
675.707
692.600
709.492
726.385
743.278
760.170
777.063
793.956
810.848
24
687.259
704.440
721.622
738.803
755.985
773.166
790.348
807.529
824.711
25
699.041
716.517
733.993
751.469
768.945
786.421
803.897
821.373
838.849
26
711.365
729.149
746.933
764.717
782.501
800.285
818.070
835.854
853.638
27
724.052
742.153
760.254
778.356
796.457
814.558
832.660
850.761
868.862
28
737.346
755.779
774.213
792.647
811.080
829.514
847.947
866.381
884.815
29
751.007
769.782
788.557
807.332
826.108
844.883
863.658
882.433
901.208
30
766.104
785.257
804.409
823.562
842.715
861.867
881.020
900.172
919.325
31
781.566
801.105
820.645
840.184
859.723
879.262
898.801
918.340
937.880
32
796.602
816.517
836.432
856.347
876.262
896.177
916.092
936.007
955.922
33
811.936
832.235
852.533
872.831
893.130
913.428
933.727
954.025
974.324
34
827.579
848.269
868.958
889.648
910.337
931.027
951.716
972.406
993.095
35
844.130
865.233
886.337
907.440
928.543
949.646
970.750
991.853
1.012.956
36
861.202
882.732
904.262
925.792
947.322
968.852
990.382
1.011.913
1.033.443
37
879.515
901.503
923.491
945.478
967.466
989.454
1.011.442
1.033.430
1.055.418
38
898.281
920.738
943.195
965.652
988.109
1.010.566
1.033.023
1.055.480
1.077.937
39
917.509
940.447
963.385
986.323
1.009.260
1.032.198
1.055.136
1.078.074
1.101.011
40
937.214
960.644
984.074
1.007.505
1.030.935
1.054.365
1.077.796
1.101.226
1.124.656
41
957.725
981.668
1.005.611
1.029.555
1.053.498
1.077.441
1.101.384
1.125.327
1.149.270
42
979.086
1.003.563
1.028.041
1.052.518
1.076.995
1.101.472
1.125.949
1.150.426
1.174.903
43
1.000.976
1.026.001
1.051.025
1.076.049
1.101.074
1.126.098
1.151.123
1.176.147
1.201.171
44
1.023.404
1.048.989
1.074.574
1.100.159
1.125.745
1.151.330
1.176.915
1.202.500
1.228.085
45
1.046.388
1.072.548
1.098.708
1.124.868
1.151.027
1.177.187
1.203.347
1.229.506
1.255.666
Appendix – Salary scale increase for the collective bargaining agreement period 2024-2028
A wage table supplement shall be adopted for the union during the collective bargaining period 2024-2028. The wage table supplement is intended to ensure that the development of wage costs for employees in the public sector within the framework of the relevant collective bargaining organization generally keeps pace with the development of wage costs for comparable groups in the private sector, but it is not intended to ensure the development of wage costs for individual unions or employees. Comparative groups in the private sector are specified by the sections of the Icelandic occupational classification of Statistics Iceland (ÍSTARF) for the specified period. The wage table supplement does not affect agreed wage increases in collective bargaining agreements. The effects of wage changes in connection with the implementation of Article 7 of the agreement on changes to the structure of public sector pensions from 2016, as the case may be, do not have the effect of reducing the wage table supplement.
Comparison groups of the entire organization
The development of wage costs of the collective government employee organizations to which the union is a member shall be compared with the development of wage costs of comparable classes in the general market. The comparison groups of collective organizations are as follows:
Overall organization
Payroll
Public market position
BHM
State
Specialists (ACTIVITY section 2)
CI
State
Specialists (ACTIVITY section 2)
BSRB
State
45% technicians and specialists (WORK sector 3),
35% Service, sales and sales staff (WORK section 5),
15% office workers (WORK section 4) and
5% specialists (WORK section 2)
ASI
State
50% workers (OCCUPATIONAL 7,8,9 and position number 0.1)
43% Service, sales and sales staff (WORK section 5),
7% craftsmen (OCCUPATION 7 and position number 2.3)
During the term of the collective agreement, the development of wage costs between markets shall be compared three times, with the beginning of the period in all measurements being December 2023. The development of hourly wages for regular wages (Statistics Iceland's wage index) during the reference period shall be taken into account, with the exception of increases related to the implementation of Article 7 of the agreement. In addition, the development of other wage costs agreed in the collective agreement and generally included in the cost of concluding a collective agreement, such as increases in contributions to the fund, changes in working arrangements or rights, shall be taken into account.
The measured wage table increase is based on calculations of changes in the wage index and wage costs as follows:
Reference period
Changed salary table device value
December 2023 - December 2024
September 1, 2025
December 2023 - December 2025
September 1, 2026
December 2023 - December 2026
September 1, 2027
If the results of the measurements lead to changes in the salary scale, the changed salary scale will take effect according to the above.
Prerequisite for salary scale increments
The prerequisite for the settlement of wage table increases to take effect is that there is an approved collective agreement in place during the above-mentioned reference period and that collective agreement-based increases have been paid out during that period. Thus, the settlement of wage table increases will not occur if an agreement has not been reached and collective agreement-based wage increases have been paid out within the reference period.
Salary scale increase committee
The general employers' organizations (BHM, KÍ, BSRB and ASÍ), the City of Reykjavík and the Association of Icelandic Local Authorities shall each appoint one principal representative and one alternate, while the state shall appoint two and two alternates, to a committee whose role is to define in more detail which assumptions will be used as a basis for measuring the development of wage costs between markets. A representative of the state shall chair the meetings of the committee, but a committee member may request the presence and chairing of meetings by a state mediator, and shall comply with this.
The committee shall review and confirm the results of each period's calculations for possible salary scale increases for each group of government employees based on:
The committee shall seek cooperation with the government, including on the collection and processing of information, and assess whether there is reason to reassess the weights of comparison groups or to consider unexpected changes in the wage index that can be attributed to factors other than wages or actual work input. In addition, the committee shall establish further rules of procedure.
Salary scale allowance calculation
If it turns out that the measured development of the wage costs of the relevant collective organization is worse than that of the comparison group in the general labor market, cf. the above table, and the difference is over 0.5%, the wage scale according to Article 1.1.1 shall be increased by 80% of the measured difference. If the development is worse in the last reference period, the condition for a difference of over 0.5% shall be waived and the wage scale according to Article 1.1.1 shall be increased by 90% of the measured difference on September 1, 2027. This arrangement, to improve only a certain percentage, is chosen in light of the fact that the wage development of the past and the wage development of the group in question may have changed since the period covered by the measurement. If, on the other hand, the development is in favor of public employees, nothing shall be done.
If the total number of man-years of trade unions entitled to a wage table increase, in accordance with the definitions above, is less than 80% of the total number of man-years of the relevant collective union, the difference in the development of wage costs between markets shall be weighted by the ratio of the man-years of trade unions entitled to a wage table increase to the total number of man-years of the relevant collective union. The reference shall be to man-years in the previous calendar year. This arrangement, which involves weighting the difference, is made to prevent overpayment of wage table increases that could be attributed to the fact that the proportion of members with an approved collective agreement and a paid collective agreement-based increase would be low, so that there would be a significant overestimation of the difference in the development of wage costs between markets.
Example of salary scale bonus arrangement – assessment and settlement
Class/
Public market
Alliance /
Public employer
Labor cost index in December 2023
100
100
Increase in regular wages (wage index) according to Statistics Iceland's estimate
16,5%
12,5%
Wage increase in accordance with Article 7 of the agreement
-0,2%
Increase in payroll costs, such as contributions to a vacation fund
0,1%
0,5%
Labor cost index for the month of December
116,6
112,8
Difference, %
(116,6/112,8-1)
3,37%
Salary scale bonus (80% of difference)
2,70%
Example of a salary scale bonus arrangement if 70% are entitled to a salary scale bonus – assessment and settlement
Class/
Public market
Alliance /
Public employer
Labor cost index in December 2023
100
100
Increase in regular wages (wage index) according to Statistics Iceland's estimate
16,5%
12,5%
Wage increase in accordance with Article 7 of the agreement
-0,2%
Increase in payroll costs, such as contributions to a vacation fund
0,1%
0,5%
Labor cost index for the month of December
116,6
112,8
Difference, %
(116,6/112,8-1)
Weighting of the percentage of approved agreements and the right to salary scale increases
(70%)
3,37%
2,36%
Salary scale bonus (80% of difference)
1,89%
Appendix 1 – Protective clothing
with the collective agreement between the Minister of Finance on behalf of the Treasury and SGS,
signed on 7 April 2004
Protective clothing
I. Protective clothing for general and specialized work by workers
1. An employee in manual labor shall be provided with overalls or two-piece work overalls as required for the job.
2. An employee working outdoors shall receive one rain jacket per year.
3. When working outdoors in winter, an employee shall be provided with special protective clothing if necessary in the opinion of the relevant supervisor and shop steward.
4. When an employee must wear a safety helmet in cold weather or similar conditions, he or she shall also be provided with a helmet cap.
5. In unsanitary situations where particularly dirty or rough work is performed, the employee shall be provided with special protective clothing as necessary, including a protective apron, work mittens and protective gloves. The same applies to work that results in abnormal wear and tear on shoes or clothing.
II. Protective clothing for cooking, laundry and cleaning work
1. Employees in kitchens and laundries shall be provided with protective clothing (gown and trousers or trousers/skirt and blouse) that shall only be used for those tasks. Protective gloves shall also be provided.
2. Employees performing cleaning work shall be provided with protective clothing and gloves. If the employer decides not to provide such, the employee shall be entitled to payment in accordance with Article 8.3.1.
III. Footwear for healthcare workers
1. Employees of health care institutions who are employed for an indefinite period shall, after a probationary period, have the opportunity to receive suitable work shoes free of charge if the institution requires them to wear special shoes and they are not permitted to use the shoes outside the workplace. If special footwear is required for safety reasons, it shall be provided immediately upon employment.
2. The shoes shall be the property of the institution and shall be renewed as needed, but not more frequently than annually, for full-time employees.
3. When an employee leaves his/her job, he/she shall have the option of purchasing the shoes from the relevant institution at a reduced price.
Appendix 2 – Canteen staffing
with the collective agreement of the Ministry of Finance on behalf of the Treasury and SGS signed. 7.4. 2004
Staffing of cafeterias
I. Criteria for staffing cafeterias
The contracting parties agree that a definition of daily work in each individual cafeteria or catering company shall be included in the job description, cf. the provisions of Rules No. 351 of 25 June 1996, which are based on the 1st paragraph of Article 8 and Article 42 of Act No. 70/1996 on the rights and obligations of government employees.
1. It is considered full-time work for a caterer who is responsible for the operation of a canteen or catering company and the procurement of supplies to cook and serve one main meal and two side meals, e.g. one hot and/or cold meal and two coffee breaks with side dishes, for fewer than 25 diners on a regular basis. When the number of diners, with the same working hours criterion, reaches 56, an additional full-time job has been added.
According to the above, each diner in excess of 24 is calculated as the equivalent of 0.25 hours. Since diners are typically 40, 1.5 full-time equivalents are required to operate the cafeteria or food company in question.
2. Bonus payments to employees of canteens and catering companies
Catering staff shall be paid a salary supplement if the number of diners in a canteen or catering company temporarily exceeds the staffing standard.
1. However, a surcharge is not paid if an increased number of diners is accommodated with additional staff.
2. When 2 or more food service workers work in a cafeteria or food service company, the timesheet for the workload shall be divided between them, based on the work ratio of each employee.
3. Timesheets for workload shall be 0.25 hours of overtime for each full-board diner. Each main or side meal shall be calculated as one-third of the full-board.
Example of a busy schedule where the number of regular diners is 10 and one full-time chef:
1. If a group of 14 people or fewer comes for food or coffee, there is no additional charge.
2. If a group of 30 people comes for food or coffee at one time, the excess guests are 16 and a surcharge is then paid according to the calculation formula:
1. The salary of food stewards of work groups in mobile work camps or comparable workplaces who handle all regular meals, i.e. morning coffee 15 min. before the start of work, breakfast, lunch, afternoon coffee, dinner and evening coffee no later than 21:30 - 22:00, shall be a monthly salary but shall be paid as a daily salary according to the salary group and seniority level of the food steward in question as follows:
Daytime work part: monthly salary / 21.67.
Overtime component: 86.67 overtime hours / 21.67.
Appendix 3 – Form of employment contracts and information on employment terms
with the collective agreement between the Minister of Finance on behalf of the Treasury and SGS,
signed on 7 April 2004
Agreement on the form of employment contracts
and
obligation to inform employees about employment conditions
Done on June 25, 1996
With reference to Act No. 70/1996, on the rights and obligations of state employees, the Minister of Finance, on the one hand, and the Icelandic Confederation of Labour, the Association of University Employees and the Association of State and Municipal Employees, on the other hand, have entered into the following agreement to implement the provisions of the first paragraph of Article 8 and Article 42 of Act No. 70/1996, which stipulate that the Minister of Finance shall establish rules on the form of employment contracts and the obligation to inform employees of employment terms, in consultation with the aforementioned trade union organisations, cf. Article 52 of the same Act. (These rules are No. 351/1996)
Article 1. Scope
Article 2. Minimum provisions on employment conditions
A written employment contract shall be concluded with the employee at the start of employment. It shall state at least the following:
1. Identity of the parties
a) Name, address and social security number of the institution.b) Name, address and social security number of the employee.
2. Workplace. If there is no permanent workplace, or a place where the work is performed regularly, it must be stated that the employee is employed at different workplaces, and these must then be specified separately.
3 Nature of work. Job title according to the collective agreement and the type of work the employee is employed to do or a brief description or outline of the job.
4. Working hours, i.e. day work, shift work or other arrangements of any kind. Work rate and daily and/or monthly work obligations.
5. Employment, i.e. whether the employment is permanent or temporary.
6. Start date of employment.
7. Termination date if employment is temporary.
8. Pension fund.
9. Trade union.
10. Monthly salary, for example with reference to wage rates and other payments.
11. Wage payment period.
12. Holiday entitlement.
13. Notice period by employer and employee.
14. Right to pay during maternity leave.
15. Right to pay during illness.
Information pursuant to sections 11-15 may be provided with reference to laws, government regulations or collective agreements.
Article 3. Jobs abroad
If a government employee, other than a foreign service employee, is assigned to work in another country for one month or more, he or she shall receive written confirmation of the following terms of employment prior to departure:
1. Estimated period of employment abroad. 2. Currency in which salary is paid. 3. Benefits or allowances related to employment abroad. 4. Where applicable, conditions for the employee to return to their home country.
Information pursuant to paragraphs 2 and 3 may be provided with reference to laws, government regulations or collective agreements.
Article 4. Limited changes to employment terms
If there are changes to employment terms, pursuant to Articles 2 and 3, beyond what results from law, government regulations or collective agreements, the institution shall confirm the changes in writing.
Article 5. Special provisions regarding previous employment
If an employee who does not have an employment contract that meets the requirements of Article 2 and was hired before the entry into force of Act No. 70/1996 requests written confirmation of employment in accordance with the provisions of this agreement, the institution shall provide him with such confirmation within two months of the request being made.
Article 6. Entry into force
The Minister of Finance will publish rules, pursuant to the first paragraph of Article 8 and Article 42 of Act No. 70/1996, in accordance with this agreement and they will enter into force upon publication in Section B of the Government Gazette.
Attached is a model of an employment contract recommended by the contracting parties. The institutions are nevertheless permitted to use the form that is most suitable in each case, provided that the minimum provisions of Article 2 are met, or to add contractual provisions.
Appendix 4 – Agreement on the limitation of the right to strike
Agreement on the limitation of the right to strike
and
joint voting
with the collective agreement between the Minister of Finance on behalf of the Treasury and SGS,
signed on 7 April 2004
It is the common goal of the parties to bring the working environment of members of SGS member associations closer to that which applies to other government employees. Therefore, the parties have reached an agreement on the following:
Article 1
The provisions of Chapter III of Act No. 94/1986 shall apply to the decision and implementation of strikes by SGS member unions from the entry into force of this agreement.
Framework agreement for cleaning work
signed on 1 November 1994
between VMSÍ on the one hand and VSÍ, VMS, the Minister of Finance on behalf of the Treasury and the City of Reykjavík on the other.
1 Scope and objectives of the agreement
1.1 Scope of the agreement
This agreement covers all types of cleaning work as defined in this agreement. It is intended to create a framework for organizing cleaning and defining terms.
1.2 Objectives
To facilitate the application of different pay systems and planning. To increase education about the field of work and to promote increased quality in the implementation of cleaning.
2 Definitions
2.1 Cleaning
Cleaning is the process of removing dirt (from a surface). This may involve the use of water, tools, equipment, and cleaning agents.
2.2 Regular cleaning
This refers to a specific, defined area of the interior that is regularly cleaned, along with interior fittings, below reach height, cf. Article 3.1.
2.3 Main cleaning
This means that the surface is thoroughly cleaned below reach level of dirt that does not disappear with regular cleaning, cf. project description.
2.4 Cleaning
This means that the surface is cleaned of dirt that does not disappear when cleaned, cf. articles 2.2 and 2.3.
3 Cleaning area
3.1 Demarcation of cleaning areas (reach height)
A cleaning area is defined by the floor area and the possible working height of a person standing on the floor or a safe base as stipulated in the project specifications.
3.2 Measuring square meters for cleaning
The square footage of each area shall be measured as the floor area limited by the inner edge of the area's walls.
4 Performance
4.1 Work rate
Work pace is the measured speed of work according to the definition of the International Labor Organization.
Standard output is the output that competent employees produce on average during a working day or shift without overexertion, provided they know and follow a specific work method and are interested in putting in the effort.
Such performance is given a score of 100 according to standard assessment and performance scales. For other work rates, reference is made to the definitions of the International Labour Organization, cf. Appendix 1.
4.2 Calculating cleaning time
When calculating time for cleaning work, time units (standard hours) can be used as a basis. When time units are used for each project according to the project description, they must be in accordance with a specific work rate that the contracting parties agree to use, cf. Article 4.1 and Chapter 6 of the Guidelines for the Preparation and Conduct of Work Investigations, cf. Attachment 1.
4.3 Calculation of performance
The basic unit for calculating cleaning performance is square meters of floor cleaned per unit of time (m2/hr). This includes all cleaning in the cleaning area according to the job description.
EXAMPLE:
a) The area is 600 m2 of floor space. Everything is started 3 days a week and the time for the work on each of these days is Y hours.
The output of this area is 600/Y = X m2 per hour.
b) An area has a floor area of 655 m2. 450 m2 is operated 5 days a week, while 205 m2 is operated 3 days a week. The total operating time of the area is Y hours.
The output of this area is ((450*5)+(205*3))/Y = X m2 per hour.
5 Working hours
5.1 See section 1.7 of the collective agreement between VMSÍ and VSÍ/VMS.
5.2 Paid time off
Paid time for cleaning areas is measured in hours for each shift. See booking in Attachment II.
6 Purchase
6.1 See collective agreement
Time-based piecework.
Measured piecework.
Monthly salary.
Cleaning wages.
7 Working arrangements.
7.1 Adaptation
The parties to the contract may decide which wage system shall be used, depending on what is considered appropriate for the work to be carried out. Other work may also be related to the cleaning work carried out by the cleaning worker at the workplace. With more diverse possibilities in wage systems, increased information to employees and the combination of cleaning areas within the same building or several, opportunities are created to increase the number of jobs and increase the employment rate in cleaning, see also Appendix III.
7.2 Other provisions
Provisions other than those stipulated in the framework agreement shall be negotiated separately.
8 Facilities
8.1 Workplace facilities
Workplace facilities shall be in accordance with the provisions of collective agreements and the Act on Facilities, Health and Safety at Workplaces and the Regulation on Workplace Accommodation. Provisions concerning the execution of the work and special facilities for cleaning work shall be stipulated in the job description.
9 Education
9.1 Courses
To increase job skills, the parties to the agreement have reached an agreement on holding courses for cleaning staff. The courses are to teach them the correct working methods and handling of tools and materials. Promote understanding of the need for quality in this service. Promote the protection of the health of employees and ensure that they are educated about their work and the collective agreements that apply to the work.
9.2 Development
The aim is to make cleaning work a professional job where employees have acquired a certain level of specialization through education and work experience.
10 Project descriptions
10.1 Project description
The written job description shall clearly delineate on a drawing the cleaning areas, what is to be cleaned and with what emphasis. The job description shall state at what time of day the area is to be cleaned and how often.
10.2 Accessibility of project descriptions
A job description shall be available at the workplace and accessible to employees. The job description shall be revised immediately if there is a permanent change to the cleaning area or cleaning requirement. A trade union shall have access to the job description if it so requests. Before work begins, employees shall be thoroughly briefed on the work area and working conditions and shall review the job description.
11 Equipment
11.1 About equipment and modifications
Care should always be taken to ensure that the most suitable equipment is available on site, along with the cleaning materials to be used, to make the work as easy as possible and ensure the best possible results. In the event of major changes to equipment, the time estimated for the work must be re-evaluated.
12 Dispute resolution
12.1. Disputes over contractual provisions
If a dispute arises regarding this agreement, the implementation of the agreement's provisions, or anything else covered by the agreement, it shall be referred for resolution to a four-person committee, where the parties to the agreement appoint two people each.
12.2 Disputes regarding project implementation
Disputes about individual cleaning areas can be resolved through a joint examination between workers' representatives and the employer.
13 Validity period
This framework agreement enters into force on November 1, 1994, and may be terminated by either party with three months' notice.
See attachments I, II and III on the following pages.
Attachment I
Translation from the International Labor Organization book:
Introduction to work study, published 1992, p. 310.
Table 17. Examples of different work speeds according to key metrics.
Scales Description Comparable
walking speed 1)
60-80 75-100 100-133 0-100 (km/h)
standard
0 0 0 0 No activity
40 50 67 50 Employee is very slow 3.2
and clumsy and has a limp-
learned movements; it seems
half asleep and indifferent to
the job.
60 75 100 75 Continues steadily but is 4.8
slowly and obviously not
in piecework, but subject to
more normal work management. It seems
work slowly but don't waste
over time intentionally while
He is being followed.
80 100 133 100 A smart employee who delivers 6.4
(Standard- good work, such as routine-
speed) bearings skilled worker in
piecework. Satisfactory
standard quality and accuracy.
100 125 167 125 Works very fast. Safety hand- 8.0
agility and coordination of movements
far beyond an employee who
has received traditional training.
120 150 200 150 Works exceptionally fast and off 9.6
enthusiasm and determination that is not
is likely to last a long time.
Excellent performance in the job as
only a few employees reach.
1) It is assumed that the worker is of average height and build and walks in a straight line on a horizontal, smooth and even surface without obstacles and without carrying a load.
Source: Adapted from a table provided by the Engineering and Allied Employers (West of England) Association,
When calculating paid time for cleaning areas, which are timed based on time units (standard hours), whole hours and fractions thereof are calculated with quarter-hour accuracy. If the total time for a cleaning area is 5 minutes higher than the next quarter-hour before, it is increased, but if it is lower, it is reduced to the next quarter-hour before.
Attachment III.
In drawing up a framework agreement on cleaning work, the parties have aimed to define the work and describe the procedures for calculating it. Such definitions and calculations may apply to different wage systems. It is the opinion of the parties to the agreement that hourly work is no less suitable than piecework for increasing the quality of cleaning. However, care must always be taken to allocate the employee sufficient time to carry out the work with the right tools and materials.