Living and working conditions: Iceland

There are a number of ways to go about job searching, but it is a good idea to start looking for a job before you move to Iceland. The EURES portal contains all the jobs advertised at the Directorate of Labour in Iceland; EURES jobs are specifically marked by the European flag. On the portal, you may also find detailed information on the living and working conditions in Iceland as well as on the current situation on the country's labour market.

You can also contact a EURES Adviser by sending us an email at eures@vmst.is.

Employment agencies [ráðningarþjónustur]: You may register free of charge with one or more private employment agencies. You can find employment agencies and homepages where you can find jobs in Iceland here: https://vinnumalastofnun.is/en/job-search/other-recruitment-agencies

Read the [classified] advertisements in the local newspapers: The two largest newspapers in Iceland are Morgunblaðið (www.mbl.is) and Fréttablaðið (www.visir.is). A special employment section (Atvinna) comes out on Saturdays in Morgunblaðið and Fréttablaðið, but there are often job advertisements on other days. Note that most job advertisements are in Icelandic.

Speculative applications: If you know the industry in which you want to work, you may want to send the relevant companies an application with a CV, call them directly or visit them and ask if there are any positions available. EURES can also help you to find suitable companies.

Contacts: Tell everyone you know in Iceland that you are looking for employment. Word-of-mouth via family and friends often gives good results.

Social media: On Facebook you will find circles/groups where you can apply for access to advertised jobs. Use the words 'starf, störf, vinna, atvinna' [job, jobs, employment, work] to find those groups.

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Curriculum Vitae/Résumé

In Iceland the usual practice is to enclose a résumé/CV with your job application. The CV should preferably fill no more than one or two pages. Most people include their photograph with the CV. Because CVs vary a great deal, here is a list of the information that should be included. The information should be in reverse chronological order (most recent information first):

Personal details: Name, address, phone number, e-mail address and perhaps date of birth (ID number) and marital status.

Education: It is here that formal education is specified. It should include when you studied, the name of the school, degree, and in what area your degree and your expertise is.

Work experience: This is a very important part of your résumé. Include a brief description of each job/position, name of the company and when you worked there.

Other qualifications: Here you should mention your language skills; spoken and written. You can also describe your computer skills, the type of driving licence you might have and other relevant qualifications.

Other/hobbies: Describe in a few lines your interests outside of work and leisure activities. If you have lived abroad by all means mention it.

References: It is very important to name at least two people who will give you a good reference. State the names, job title, telephone numbers and e-mails of those individuals. Contact your referees and make sure you have their approval.

Cover letter

When you send in a job application or a CV you should also include a cover letter. The letter should be no longer than one page. Your cover letter is an important marketing tool that highlights your most attractive qualifications as a potential employee. While you may use the same CV for every job you are applying for, you should write a different cover letter for each job applied for.

Consider the following when writing the letter:

If you are responding to an advertisement be sure to read it carefully, and make sure you respond to what it asks for.

Explain why you want this particular job.

Make it clear to the recipient that you are familiar with the company and with the required qualifications and, furthermore, how you satisfy these.

Standard application

Larger employers in Iceland often use standard application forms. You will find these application forms on the job agencies’ websites or on the website of the relevant company. Most of them are available only in Icelandic, with the exception of the EURES application form www.vinnumalastofnun.is/eures.. Employers decide who to invite for job interviews on the basis of these application forms, so it is important to fill them in correctly. You can often attach your CV, application letter and perhaps other important documents with the application.

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Definition

In Iceland there is no real tradition for internships after formal education.

We know that some companies have started to offer some internships but it is entirely on individual basis.

There is no framework. As long as a company in the private market pays a person at least according the minimum rate in collective wage agreement they are not breaking any rules.

Eligibility

no information available

Implementation

no information available

Living and working conditions

no information available

Where to find opportunities / job vacancies

no information available

Funding and support

no information available

Where to advertise opportunities

no information available

Funding and support

no information available

Legal framework

The system around apprenticeships within vocational training in Upper Secondary schools in Iceland is well formalised. It is based on the "Upper Secondary Education act 2008 no 92 12 June" (see article 28) https://eng.menntamalaraduneyti.is/media/frettatengt2016/Thyding-log-um-framhaldsskola-juli-2016.pdf

Regulation no. 840 from August 28th 2011 stipulates the rules bases on article 28. http://www.reglugerd.is/reglugerdir/eftir-raduneytum/menntamalaraduneyti/nr/18028

The minimum age of candidates is 16 years.

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

There is no general legal framework around apprenticeships on university level.

Description of schemes

Traditional vocational training ending with journeyman's examination usually takes 4 years. The combination between training in school and in workplace (apprenticeship) varies considerably between trades. A company that wants to take on apprentices has to apply for a special licence. Within each trade the Ministry for Education has appointed a committee that goes over the applications and grants licences to those companies that meet all requirements.  The schools that offer vocational training can give some information about availability of apprenticeship but it can vary a lot between trades and economic conditions. Each school supervises the apprenticeship contracts of its students. The Technical College Reykjavik, http://en.tskoli.is/, offers the widest range of vocational training in Iceland.

Apprentices get salary according to special rate for apprentices in collective wage agreements; see http://www.samidn.is/ (Association of trades unions).

Apprenticeships on university level are generally bases on bilateral contracts between a university or a department within a university and a company, institution or organisation of some kind. No general rules apply so structure and length of schemes can vary.

Eligibility

Other EEA nationals can enrol in vocational training in Iceland given that they meet the requirements for example regarding language. Most vocational school training is in Icelandic.

EEA nationals enrolled in vocational training in another EEA country might do an apprenticeship in an Icelandic company given that the company meets the requirements made by the school. There are some examples of such bilateral contracts between an Iceland employer and vocational training schools in other EEA countries.

Living and working conditions

IDAN’s Vocational Education and Training Centre, http://www.idan.is/english , gives information about  companies within different trades that have offered apprenticeships, assessment and recognition of foreign education.

Where to find opportunities / job vacancies

Apprenticeships are sometimes advertised in employment sections of newspapers and/or recruitment websites, see https://vinnumalastofnun.is/en/job-search/other-recruitment-agencies

Erasmus + in the candidate's country of residence.

Funding and support

The Icelandic Student Loan Fund http://www.lin.is/lin/UmLIN/english.html, EEA nationals may qualify for loan.

Where to advertise opportunities

In employment sections of newspapers and/or recruitment websites, see https://vinnumalastofnun.is/en/job-search/other-recruitment-agencies

Funding and support

The Workplace Training Act Fund, https://www.rannis.is/sjodir/menntun/vinnustadanamssjodur/, awards grants to companies and institutions  for workplace learning and vocational training defined as an integral part of vocational education in the National Curriculum Guide for upper secondary schools. See https://eng.menntamalaraduneyti.is/media/frettir2014/Thyding-log-um-vinnustadanamssjod-mai-2015-Lokagerd-a-vef.pdf

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

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

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

Limits to the free movement of goods

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

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

Free movement of capital

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

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

Advantage

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

1. easily open a bank account,
2. buy shares
3. invest, or
4. purchase real estate

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

Exceptions

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

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

It is best to secure accommodation before you move to Iceland, though this may not always be possible. If you need accommodation during your first days in Iceland, a guesthouse or youth hostel may be the best short-term solution while you look for more permanent accommodation.

The rental market in Iceland is difficult. Rental rates are high and the availability of rental housing does not meet demand. Prices are highest in the centre of Reykjavík (ZIP code 101) and generally decrease as you move away from the centre. Rental rates outside of the capital district, in rural areas in particular, are much lower than in the capital.

It is very common to look for and find housing for rent on the internet. In the two largest newspapers, Fréttablaðið and Morgunblaðið, ads appear for vacant premises. Look for 'Available Housing' (Húsnæði í boði) either in the printed version or Web version.

The website www.bland.is is quite extensive, with many apartments and rooms available for rent. Choose 'real estate' (fasteignir) and then 'for rent' (til leigu). You can also insert your own housing advertisement for free or at a reasonable price. On social media, such as Facebook, there are many groups where both housing to rent is advertised and people advertise their housing. These groups can be found under the terms 'rent' (leiga) and 'housing' (húsnæði) and you can apply for membership.

You can use the services of rental agencies, but please note that payment for their services is made separately.

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Pre-schools

You can apply for a pre-school place for a child immediately at birth or as soon as the child has been given a social security number. Local authorities operate most pre-schools, but there are also private schools. Information on pre-schools and application forms can be found on the website of the local municipality office.

Compulsory schools

Local authorities operate most compulsory schools, but there are also private schools. Most children go to the public schools in their neighbourhood. Information on compulsory schools and application forms can be found on the website of the local municipality office.

Upper secondary schools

Upper secondary schools are operated by the government. A list of schools and a central electronic check-in system can be found at www.menntagatt.is

Higher education

On the website of the Multicultural and Information Centre at www.mcc.is you can see a list of all the universities in the country and links to their web pages.

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

Your driving licence in the EU

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

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

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

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

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

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

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

Registering your car in the host country

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

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

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

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

Car Insurance

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

Taxation

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

You must fill in Form A-261 (Icelandic)/A-262 (English) at the National Register of Iceland each time you enter the country. An identification number is assigned on first arrival in the country. A contract of employment or an employer's confirmation on Form A-265 (Icelandic)/A-266 (English) must be attached.

EEA/EFTA citizens may stay in Iceland for 3-6 months without registering their legal domicile in Iceland, but must register and receive an assigned ID number on their first arrival. A legal entity in Iceland, for example an employer, an educational institution, company or a government agency must apply for the ID number for the person in question on the form A-263 (Icelandic)/A-264 (English).

EEA/EFTA citizens who intend to stay longer than 3-6 months in Iceland must register a legal domicile in Iceland within 7 days of arrival in the country or when they meet the requirements for a registration of legal residence. The main requirement for a registration of legal residence is to provide proof of minimum resources. Most do so by submitting a contract of employment.

Staying longer than 3-6 months without registering in the National Register is illegal and affects people's rights. Anyone who stays or intends to stay in Iceland for 3-6 months or more must be legally domiciled in Iceland. The right to public services and assistance is usually subject to the person having a registered domicile and it is advisable to register your domicile first if you intend to reside in Iceland.

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What should you bring with you?

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

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

Contact the local social security service and tax office to find out how working in Iceland will affect your status regarding taxes and benefits, and be sure to obtain the appropriate forms and certificates. Have sufficient funds to get you started until you receive your first salary payment.

It is advisable to obtain the E-104 certificate from the last country of residence to confirm the insurance period in that country’s general health insurance system. You will automatically get health insurance in Iceland 6 months after your registration of legal residence, but immediately if you submit the E-104 certificate along with the registration of legal residence.

Sufficient funds to get you started until you receive your first salary payment, for rent, food, payments for the processing of applications, etc. For instance, money for accommodation, rent deposits, food, application processing fees for residence permit etc. (be aware that pay day is usually the first day of the month so it may be a while until you receive your first salary payment).

Enough money for a return ticket in case you change your mind about staying in Iceland or you don’t find a suitable job.

The U-1 form in case you happen to lose your job after working for a time in Iceland.

What should I do first after arriving in Iceland?

EURES in Iceland offers a weekly meeting for foreign jobseekers newly entering the country, which deals with the job search, registration in the country, the value of collective agreements and finding housing. The meetings are held on Wednesdays at 14:00 at the public employment office in Kringlan 1, 103 Reykjavik. There’s no need to register for the meeting, just turn up on the day.

If you have found work and/or housing when you arrive in Iceland, the most important thing to do is to go to the National Register of Iceland, and apply for an ID number and legal residence registration or just for an ID number. In the future, you can, for example, apply for a tax card and open a bank account.

If you haven't found work and housing when you arrive in the country, you should make this a priority.

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

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

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

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

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

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

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

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

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

Criteria for quality of work and employment

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

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

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

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

Health and safety at work

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

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

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

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

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

The possibility of obtaining recognition of one’s qualifications and competences can play a vital role in the decision to take up work in another EU country. It is therefore necessary to develop a European system that will guarantee the mutual acceptance of professional competences in different Member States. Only such a system will ensure that a lack of recognition of professional qualifications will become an obstacle to workers’ mobility within the EU.

Main principles for the recognition of professional qualifications in the EU

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

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

Steps towards a transparency of qualifications in Europe

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

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

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

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

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

1. The European Qualifications Framework

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

2. The National Academic Recognition Information Centres (NARICs)

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

3. The European Credit Transfer System (ECTS)

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

4. Europass

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

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

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

There are special provisions in the Icelandic labour protection legislation regarding of children and adolescents working under the age of 18 years. According to those provisions, a special permit from the Labour Inspectorate is required to hire children under the age of 13 to work and children under the age of 15 may only be employed for lighter work. Working hours of adolescents aged 15-18 are limited to 40 hours per week and generally it is prohibited to have adolescents working during the period from 22:00 to 06:00.

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

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

Self-employed individuals bear the responsibility for paying taxes and expenses on their income to the Treasury.

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

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If a worker is hired for longer than 1 month and on average for more than 8 hours per week, a written contract of employment must be made or terms of employment confirmed by the employer in writing no later than two months after the employee starts work.

The contract must include the following information:

• The names of both parties (employee and employer).
• The workplace and the address of the employer; where there is no fixed or main workplace.
• The title, grade, nature or category of the work for which the worker is employed, or a brief specification or description of the work.
• The date of commencement of the contract or employment relationship.
• In the case of a temporary contract or employment relationship, the expected duration.
• Holiday entitlement and holiday allowance.
• Length of the notice periods to be observed by the employer and the worker.
• Monthly or weekly pay, other component elements and the frequency of payment of the remuneration to which the worker is entitled.
• Length of the worker's normal working day or week.
• Pension Fund.
• The collective agreement governing the worker's terms and conditions of work depends on the applicable trade union.

Where an employment relationship comes to an end within a period of 2 months from the start of work, the information mentioned above must be made available to the worker at the end the relationship.

A contract of employment can be terminated by the employer or the worker giving the notice of termination required by collective agreements. There are, however, a number of important derogations from this principle which restrict the freedom of the employer to end the employment relationship.

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The Directorate of Labour offers services for disabled people and other job seekers with reduced working capacity. The service is made up of two elements and depends on the service needs of each individual.  On one hand, the agency offers specialised advice and support for job searching and on the other hand there is AMS (Atvinna með stuðningi), 'Supported work', which includes assistance with job searching, support and follow-up at work.

The agency also manages work contracts for disabled people.  The agreement ensures that an employer who employs a person for work receives a fixed rate of salary and wage related expenses for the person concerned.

The Organisation of Disabled in Iceland (Öryrkjabandalag Íslands) is the organisation representing the human rights interests of disabled people. The organisation offers advice from social workers and lawyers.

Employers are required by law to take special measures for the safety and the health of pregnant women, and women who have recently given birth to a child or are breastfeeding. It is also forbidden to force a worker to work at night during pregnancy and for 6 months after the birth of a child.

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There are four different types of private company in Iceland:

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

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

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

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

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

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

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

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

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

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

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

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In line with collective labour agreements the average maximum weekly working time over a four-month reference period shall not exceed 48 hours per 7-day period, including overtime. Working time is in this context defined as active working time. Working time for each 24-hour day must be organised in such a way as to provide at least 11 hours of consecutive rest for the worker. If possible, the daily rest time should be between 23:00 and 06:00. Moreover, workers are entitled to a rest break of at least 15 minutes during each working day of more than 6 hours. Coffee and meal breaks are considered to be breaks. For each 7-day period a worker is to have at least one day off from work, which is directly connected to the daily rest.

Night workers are those who work more than 3 hours between 11 pm and 6 am as a regular part of their job. Employers are required to take all reasonable steps to ensure that the 'normal' hours of their night workers do not exceed 8 hours in every 24 hours.

The duration of a lunch break varies between sectors of the labour market, from 30 minutes to one hour, taken between 11:30 and 13:30 and is not counted as paid working time. Workers are usually entitled to two coffee breaks during daytime work and these should be taken before and after noon. The length of each coffee break ranges from 15 to 35 minutes, depending on the applicable collective agreement.

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

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

People who do shift work receive a special supplement for work done outside of normal working hours. In general, the supplement is at least 33% for the period from 17:00 to 24:00 Monday to Friday and 45% for the period from 24:00 to 08:00 every day, including weekends.

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All employees are entitled to leave and holiday pay for a minimum of 2 working days for each month worked during the previous holiday year (1 May to 30 April).

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

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

Public holidays are:

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

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

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

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

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

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

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

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

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

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

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

There is no reference in the law or in collective agreements in the private sector to any special retirement age, but public servants have to retire at the age of 70. Retirement age can be said to be governed by rules relating to entitlement to old age pension. For the majority of workers, entitlement to old age pension is set at 67 years old. Workers have the option of early retirement at age 65 or to postpone their retirement to the age of 70. Seamen are entitled to old age pension at age 60.

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

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

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Trade union membership is open to all those working in the relevant trade within the area of each union in line with further fixed rules contained in their resolutions. Applicants may not be denied membership based on gender, nationality or other such grounds. Union membership is very high in Iceland compared to most countries, at around 85%. The purpose of trade unions on the Icelandic labour market is to improve wages and other employment conditions of their members, primarily by representing them in collective bargaining with employers and their federations and promoting their rights through employment legislation. Trade unions also support their members in a number of other ways, for example financially when illness or other crises arise. Members can also receive various grants. It is, for example, common for foreign workers to receive grants to attend courses in Icelandic.

Collective labour agreements cover all workers and provide them with protection, whether or not they are members of the unions. Collective labour agreements are made by unions and employers' organisations in each branch and region. Any parts of agreements between individual workers and employers that conflict with minimum rights as laid down in respective collective agreements are considered invalid.

Trade unions are authorised to select their union representatives at each workplace. The role of trade union representatives is to receive and to assess complaints relating to unsatisfactory terms of employment, facilities, etc. If they come to the conclusion that complaints are valid, they must forward the complaint or claim to the employer or to their representative, e.g. a foreman.

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Strikes and lockouts have not been a common tool for collective bargaining in Iceland, but in recent times strikes have been unusually frequent. These actions are more common in the public sector than in the private sector. Trade unions and employers' associations are authorised to declare strikes and lockouts (work stoppage) for the purpose of advancing their demands in industrial disputes and for the protection of their rights. The term 'work stoppage' refers to lockouts by employers and strikes in which workers discontinue their work to some extent or in its entirety in order to achieve a specific common goal.

When a collective agreement has been signed, the negotiating trade union or unions waive their right to strike inasmuch as the conditions established in the collective agreement are fully respected. Under normal conditions strikes are therefore used only as a bargaining tool by the trade union when negotiating a new collective agreement. Strikes in those circumstances are permitted by law, but only if the decision to call a strike has been made by secret ballot with the participation of at least 20% of all those entitled to vote, and if the proposal receives the support of the majority of votes cast.

A proposal to strike must clearly state the aim and when it should start. A negotiating committee or the competent representatives of the contracting parties may at all times cancel a work stoppage. An ongoing or proposed work stoppage may also be suspended at any time if both parties agree.

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

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

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

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

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

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

Employment in Europe

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

Health and healthcare in the European Union

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

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

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

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

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

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

Education in the EU

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

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

Transport in the EU

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

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

The Schengen area

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

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

Air transport

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

Air passenger rights

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

Rail transport

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

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

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

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

The Parliament (Althingi), where laws are made and amended, is the legislative body, and comprises 63 members from six districts, elected for a term of 4 years by popular vote. Eight political parties have representatives in the parliament. The largest party is the Independence Party (Sjálfstæðisflokkur), followed by the Left-Green Movement (Vinstri hreyfingin grænt framboð), the Social Democratic Alliance (Samfylking), the Centre Party (Miðflokkur), the Progressive Party (Framsóknarflokkur), the Pirate Party (Pírataflokkurinn), the People’s Party (Flokkur Fólksins) and the Reform Party (Viðreisn). After the elections in October 2017 a coalition government was formed between the Left-Green Movement, Independence Party and the Progressive Party, with Katrín Jakobsdóttir as prime minister.

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

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

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

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

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

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

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

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Median of total wages of full-time employees per month in 2017:

There are two levels of value added tax, 24% and 11%. The general level is 24%, and applies to all products and services that are not specifically defined by law to be at the 11% level, or that are exempt from VAT. At the 11% level, for example, are food sales, excluding alcohol, accommodation services, books and magazines, hot water, electricity and oil for central heating, CDs, condoms, non-disposable nappies and radio and television usage charges. Certain services are exempt from VAT, for example, health services, services of schools and educational institutions, social services, public transport and hospital transport and artistic activities.

The employer is obliged to deduct local taxes from wages and other payments to employees. The tax deduction consists of local authority tax and income tax payable to the state.

The deductible tax percentage is 36.94% of a (monthly) income up to ISK 927 087 and 46.24% from an income above ISK 927 087. Personal tax credit is ISK 56 447 per month for the year 2019.

Typical monthly deduction from a salary of ISK 583 000 (median wage in Iceland in 2016).

Other general taxes on individuals

Capital income tax i.e. interest income, dividend, sales profit and rental income is 20%.

A radio broadcasting fee is charged to all persons aged between 16 and 70 with income tax over income limits. The radio broadcasting fee is ISK 17 500 for the year 2019.

Car taxation is calculated on the basis of the CO₂ emissions and the weight of the vehicle.

An oil surcharge applies to usable fuel on vehicles. The amount payable is ISK 62.85 per litre of fuel plus 24% value added tax.

A levy for the elderly project fund is applied to all persons aged between 16 and 70 with income tax over income limits. The levy is ISK 10 464.

Couples and partners do not receive a special tax credit, but they can use their spouse's personal allowance if it is not fully utilised.

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The cost of living is high in Iceland. According to information from Eurostat, Iceland is ranked the 5th highest of 38 countries in Europe, when the living costs of households were compared in 2015. The price of food is high and the price of clothing, electrical appliances and transportation is the highest in the world. However, the price of telecommunications services is just slightly above average and the price of electricity is well below average.

In 2011, the Ministry of Welfare issued the Consumer Criteria for households in Iceland, which has been updated regularly. The criteria show the typical benchmarks that reflect household spending and, on the other hand, basic criteria that give an indication of possible minimum expenditures. The website of the ministry has a calculator for consumption criteria based on family size, residence and other factors, at https://www.velferdarraduneyti.is/neysluvidmid/

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It is normal in Iceland for people to live in their own homes, and hence the rental market has never grown significantly. In the past few years, however, the rental market has increased proportionally; in 2014, 78% of people lived in their own homes and 22% were in the rental market.

The rental market in Iceland is difficult, there is more demand than supply for rental accommodation and prices are high, especially in the capital. Short-term rental is also common and it can be difficult to find safe rental housing for a longer period of time. Rental apartments are mostly owned by individuals, but also by special rental companies. Apartments are advertised for rent in newspapers, online and on social media. Housing benefits can be applied for, but entitlement to housing benefits depends on rent amount, income and family size.

Foreign citizens who are domiciled in Iceland can purchase residential property. Banks, pension funds and the State Housing Financing Fund (Íbúðalánasjóður) lend money for the purchase of housing. Only licensed real estate agencies and lawyers may act as intermediaries for real estate transactions. Housing prices in Iceland have risen somewhat in recent years, especially in the capital area. For example the average price per square metre for a three-room apartment in Reykjavik in the first 9 months of 2016 was approximately ISK 350 000.

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

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

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

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

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

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

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

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

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

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

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

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One of the main characteristics of culture in Iceland is the language, Icelandic, with a very small speech community. A large number of Icelandic books are published every year, and fiction writing has a long tradition, which can be traced back to the Icelandic Sagas of the 13th and 14th centuries. Iceland has long been considered a literary nation, although book reading has declined somewhat in recent years.

Icelandic music has attracted worldwide attention in recent years, and it is safe to say that the music scene in the country is flourishing. Concerts are well-attended and every year there are popular music festivals that attract visitors from around the world.

About 90% of all buildings in Iceland are heated with hot water, and central heating costs are much lower here than in neighbouring countries. This adds to a great swimming culture in Iceland, and many people begin or end their day with a swim. In Reykjavik alone, there are seven public swimming pools that are open all year round, from early morning until evening. Most swimming pools are outdoors and usually have hot tubs. Swimming is compulsory in elementary schools in Iceland.

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Infant mortality in Iceland is among the lowest in the world, at 0.7 per 1 000 children born in 2016. This is partly explained by effective maternal and infant protection and general participation in vaccination programmes. Maternity and infant protection is free of charge under the healthcare system. Most children are born at the National Hospital.

Two individuals, regardless of sex, may marry when both have reached the age of 18 years. Marriages can be performed by civil or church authorities. The district commissioners and their lawful representatives perform civic marriages in their district. The ministers of the Icelandic National Church are responsible for ecclesiastical marriages, as well as priests and heads of other registered religious associations in Iceland who have been granted legal approval by the Ministry of Justice.

Two individuals who have the same legal domicile and who are not married or who are in an uncertified marital relationship can register in cohabitation. Foreign nationals in an uncertified marital relationship cannot be registered in cohabitation. Registration in cohabitation has to be done at the National Register of Iceland.

Individuals in registered cohabitation receive in part the same rights as married people. This applies in particular to social rights such as social security, tax matters and social services of the municipalities. However, registered cohabitation does not warrant mutual statutory inheritance, only legal marriage does that.

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Numerous airlines fly to and from Iceland; the number of flights has increased in recent years due to increased tourist numbers. There is one Icelandic airline, Icelandair, that flies into and out of the country.Kelfavík airport is one of the country’s main international airports, and is a 40-minute drive from Reykjavik. Diversion airports are located in Akureyri and Egilsstaðir. With increased competition, flights have become cheaper and well-priced flights to Iceland can be found.

Domestically, people mostly use either an aeroplane or a car to get around. There are no railway lines in the country. The road network in Iceland is more underdeveloped than in most other European countries, with one-lane bridges on Highway 1, and unpaved roads are common. Toll roads generally do not occur in the country, with the exception of the Vaðlaheiðargöng tunnel near Akureyi.

Scheduled air services are available from Reykjavík to some locations in the country, but domestic flights are expensive. In addition, scheduled buses operate around the country. In the capital area and in Akureyri there is a local bus system.

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