Iceland Annual Leave & Holiday Pay (Orlof) Calculator
Determine statutory holiday pay percentages and leave days under Icelandic Holiday Act (Orlofslog) and ASÍ/SA collective agreements.
Direct Statutory Calculation Result
Calculation Parameters (Skatturinn & Alþingi Statutory Codes)
Statutory Itemized Breakdown
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Frequently Asked Statutory Questions
What is the statutory minimum holiday pay (orlof) in Iceland?
Under Act No. 30/1987 on Annual Holidays (Orlofslog), the legal minimum vacation allowance is 10.17% of total gross wages, granting 24 working days of annual vacation (calculated working days per month worked).
How does tenure increase the orlof percentage in collective agreements?
Under ASÍ/SA collective agreements, employees earn enhanced tiers: 5 years in the same trade grants 25 days (10.64%); 5 years with the same employer grants 28 days (12.07%); and 10 years with the same employer grants 30 days (13.04%).
What is Orlofsuppbot (Holiday Supplement)?
Orlofsuppbot is a mandatory fixed lump-sum vacation bonus agreed in collective agreements, paid out annually between May 1 and June 5 for full-time employees who worked the preceding holiday year (approx. 56,000 to 58,000 ISK).
How is orlof paid out to employees?
Employers either deposit the monthly accrued orlof percentage into a special blocked interest-bearing bank account (orlofsreikningur) managed by the bank, or pay it out continuously on monthly paychecks for salaried staff.
Is holiday pay subject to income tax (staðgreiðsla)?
Yes. Holiday pay is considered taxable employment income, subject to standard statutory withholding tax (staðgreiðsla) and pension contributions at the time of payment.
Engr. Muhammad Shahzad
Verified Fiscal & Statutory AlgorithmistLead software architect and statutory modeling specialist with over a decade of experience designing enterprise-grade algorithmic frameworks, double-entry financial models, and statutory compliance engines across European and global regulatory jurisdictions.
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Nordic North Atlantic & Icelandic Fiscal Framework Architect
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.