Workers hired under a contract for day time work are not required to perform their duties on special and public holidays, unless they agree to do so. If those days fall within the week (Monday-Friday) a normal daytime pay for 8 hours is be paid. For general workers this right however does not kick in until after one month employment with the same employer or in the same occupational sector.
Special holidays are New Year’s Day, Good Friday, Easter Sunday, White Sunday, 17th of June (Icelandic Republic Day), The day before Christmas (Christmas Eve) after 12 am., Christmas day and the last day of the year (New Year’s Eve) after 12 am.
Work on major holidays is paid with an hourly pay equalling 1.375% of the monthly wages for regular day work, in addition to the 8 hours day-time wages.
Public holidays are Maundy-Thursday, Easter Monday, Resurrection day, First day of summer (April), Labour Day (May 1), White Monday, Boxing Day and Bank Holiday (First Monday in August). Work performed on these days is remunerated with overtime pay, in addition to the 8 hours day-time wages.
Transfer of public holidays
Employers and their workers are authorized, on the basis of a provision in collective agreements if they so agree, to transfer public holidays which fall on Thursdays (Resurrection day and First day of summer) onto the next working day, for example Friday or Monday, or connect them to other holidays. The purpose of such an arrangement is to establish in those circumstances a working week of at least four consecutive working days.
Christmas and Holiday bonus
Collective agreements provide for the payment by employers of a fixed Christmas bonus payable in December and a Holiday bonus payable from 1 May to 15 August. Those who work part-time or only a part of the year receive these premiums proportionally.