Pension Funds and Unions
All workers must pay into a pension fund, which guarantees them a retirement pension and insures them and their family against loss of income if they are unable to work or pass away.
The trade union movement represents workers and guarantees their rights. The role of unions is to negotiate wages and employment terms on behalf of their members in collective wage agreements. Everyone is required to make membership payments to a union, even though it is not mandatory to be a member of a union.
Pension funds
All workers must pay into a pension fund. The purpose of pension funds is to pay their members a retirement pension and guarantee them and their families against loss of income because of inability to work or death.
Full entitlement to old-age-pension requires a total residence of at least 40 years between the ages 16 to 67 years. If your residence in Iceland is less than 40 years, your entitlement is calculated proportionally based on the residence period. More information about this here.
The video below explains how does the pension funds system in Iceland works?
How does the pension fund system in Iceland work? That´s explained in this video made by The Icelandic Pension Funds Association.
Trade unions and workplace support
The role of unions is primarily to negotiate wages and other employment terms on behalf of their members in collective wage agreements. Unions also protect their interests in the labour market.
In unions, wage earners join hands, based on a common occupational sector and/or education, in protecting their interests.
The trade union movement represents workers and guarantees their rights. It is not mandatory to be a member of a trade union, but workers nevertheless make membership payments to a union. To be registered as a trade union member and enjoy the rights associated with membership, you may need to apply for admission in writing.
Efling and VR are big unions and there are many more all around the country. Then there are workers associations like ASÍ, BSRB, BHM, KÍ (and more) that work towards protecting the rights of their members.
Educational and recreational support and grants by Efling and VR
EFLING
VR
The Icelandic Confederation of Labour (ASÍ)
The role of ASÍ is to promote the interests of its constituent federations, trade unions and workers by providing leadership through co-ordination of policies in the fields of employment, social, education, environment, and labour market issues.
It’s built up of 46 trade unions of general workers, office and retail workers, sailors, construction and industrial workers, electrical workers and various other professions in the private sector and part of the public sector.
Useful links
- 65+ years - Social Insurance Administration
- How does the pension fund system in Iceland work?
- Pension funds in Iceland
- Icelandic labour law
The role of unions is to negotiate wages and employment terms on behalf of their members in collective wage agreements.