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 ofRegularOvertime (1.8x)
5 days of 8 hours, two weeks (80h)800
5 days of 10 hours, two weeks (100h)8020
6 days of 9 hours, two weeks (108h)8028
50 hours, then 30 hours (80h)7010

Breaks and lunch in Iceland

  • Rest break: 1 × 15 minutes, paid, for shifts of 6 hours or more.
ShiftRest breaksMeal break
4 hoursNoneNone
6 hours1 × 15 min, paidNone
8 hours1 × 15 min, paidNone
10 hours1 × 15 min, paidNone
12 hours1 × 15 min, paidNone
  • 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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General information, not legal advice. Collective agreements, awards and contracts can give more than the law, and laws change. Check the official sources below before acting. Some figures on this page come from secondary sources; treat them as a starting point.

Official sources

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.

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