Overtime and Break Laws in Iceland (2026)
Act No. 46/1980 on Working Environment, Health and Safety in Workplaces (chapter IX); Act No. 55/1980 on collective agreements · Reviewed 2026-10 · Private-sector employees
Overtime
No overtime rate in statute. Collective agreements, which apply to all workers in their field under Act 55/1980, pay overtime past 8 hours a day and 40 a week at about 1.8x.
Breaks and lunch
A rest break of at least 15 minutes on any workday over 6 hours. Collective agreements add paid coffee breaks (usually 35 minutes a day) and an unpaid 30 to 60 minute lunch.
Overtime in Iceland
- 1.8x pay for hours past 8 in a day.
- 1.8x pay for hours past 40 in a week.
- Overtime is generally paid per hour at 1.0385% of the monthly day-work wage. The hourly day rate is monthly pay divided by 173.33, so overtime is about 1.80x.
- Work outside agreed daytime hours (for example before 07:00 or after 17:00 for general workers) is also paid at the overtime rate.
- Average weekly working time, including overtime, may not exceed 48 hours over a 4-month reference period (up to 6 months by collective agreement, 12 in exceptional cases).
- Workdays longer than 13 hours are unlawful.
- Rates and daytime windows differ by collective agreement, so check the agreement for the sector.
Averaging over a pay period: 48-hour average over 4 months, extendable to 6 or 12 months by collective agreement.
What two weeks of work come to
Worked out by the rule above (1.8x after 40h in a week, 1.8x after 8h in a day). Hours.
| Two weeks of | Regular | Overtime (1.8x) |
|---|---|---|
| 5 days of 8 hours, two weeks (80h) | 80 | 0 |
| 5 days of 10 hours, two weeks (100h) | 80 | 20 |
| 6 days of 9 hours, two weeks (108h) | 80 | 28 |
| 50 hours, then 30 hours (80h) | 70 | 10 |
Breaks and lunch in Iceland
- Rest break: 1 × 15 minutes, paid, for shifts of 6 hours or more.
| Shift | Rest breaks | Meal break |
|---|---|---|
| 4 hours | None | None |
| 6 hours | 1 × 15 min, paid | None |
| 8 hours | 1 × 15 min, paid | None |
| 10 hours | 1 × 15 min, paid | None |
| 12 hours | 1 × 15 min, paid | None |
- Coffee and meal breaks count toward the 15-minute minimum.
- Coffee breaks are paid as worked time under collective agreements. Lunch breaks are not working time and are unpaid.
- Daily rest of at least 11 consecutive hours in every 24 hours. Can be cut to 8 hours at shift changes. Postponed rest accrues 1.5 hours off per hour lost.
- At least one day off in every 7-day period, joined to the daily rest.
Pay by Iceland rules in Kloqk
Kloqk is a free time clock. In Settings, open Payroll, press Rules by country and pick Iceland: the overtime and break rules above fill in, and every timesheet, report and payroll export follows them. Change any number to match your own contract.
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Frequently asked questions
What is the overtime rule in Iceland?
No overtime rate in statute. Collective agreements, which apply to all workers in their field under Act 55/1980, pay overtime past 8 hours a day and 40 a week at about 1.8x.
Can overtime be averaged over two weeks or a pay period in Iceland?
48-hour average over 4 months, extendable to 6 or 12 months by collective agreement.
What breaks are required in Iceland?
A rest break of at least 15 minutes on any workday over 6 hours. Collective agreements add paid coffee breaks (usually 35 minutes a day) and an unpaid 30 to 60 minute lunch.