Mandatory - Pension Savings - Services - Individuals - Arion bank

Mandatory pension savings

• Icelandic law requires that all working people between the ages of 16 and 70 to pay into a pension fund.
• The mandatory pension contribution shall be 12% of salary before tax.
• According to most union wage agreements, the employer contributes 8% and the employee 4%.
• Self-employed workers pay both contributions, i.e. 12% of salary before tax.