Hire your remote team in Iceland

Only 399 EUR per employee per month

Hiring a remote team in a country as Iceland comes with a lot of overhead, such as compliance, local laws, taxes, etc. As a company, you don't want to worry about knowing all the local laws. Instead you want to focus on your remote team and the business. Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Iceland. We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business.

A remote team

1. Hire a remote team in Iceland with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in Iceland, particularly if you don't have established local relationships. You can hire employees in Iceland effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction

Rivermate is a global employment solutions company that provides Employer of Record services in Iceland.

As an employer of record, we help you hire employees and run payroll services in Iceland, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Iceland.

It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.

If you wish to hire a remote team in Iceland or individually hire remote employees in Iceland, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.

Send us a message so we can talk about how Rivermate’s Employer of Record Iceland services can best help your company!

3. Hire a remote team in Iceland

Hiring remote employees in Iceland is a decision that requires a lot of analysis and scrutiny. Recruiting the right employees is another important task. To prevent penalties and delays, employers must learn how to recruit personnel and understand the country's employment compliance rules.

4. Cost of living in Iceland

Iceland's cost of living is $2054, which is 2.2 times more than the global average. Iceland scored 7th out of 197 nations in terms of cost of living and 15th in terms of quality of life.

In Iceland, the average after-tax wage is $3402, which is enough to pay living costs for 1.7 months.

5. Cost of renting in Iceland

Finding a cheap home is one of the most difficult aspects of living in Iceland. High-priced lodging raises the total expense of living in Iceland. There is a significant contrast between the home in City Center and the house outside of City Center. A furnished apartment in an upscale district of Iceland costs more than $ 1,660 per month, although it costs roughly $ 1,400 outside of the city center.

6. Major industries in Iceland

Iceland's economy is dependent in part on renewable natural resources; associated businesses that contribute significantly include deep sea fishing, hydraulic and geothermal power, and pastures. Fishing is one of the most important, accounting for almost 40% of total exports.

The Icelandic government is working to boost agriculture and food processing; different regulations and training programs are being implemented to increase employment opportunities.

The service industry is a significant foundation of Iceland's economy, with tourism, software creation, and biotechnology among the primary businesses. Iceland also offers a variety of business banking services. Furthermore, Iceland has become a back-up location for various computer and software enterprises.

Numerous contact centers situated around the nation provide excellent customer support services to people all over the globe. Call centers employ a large number of newcomers.

In Kosovo, the average fixed broadband internet speed is 100 Mbps. People may get 1Gbps internet speeds here because to full-fiber networks, which are available to 82% of the population.

7. Hiring cost in Iceland

Hiring costs are critical for enterprises looking to establish or grow their operations. The cost per hire is the total of all the costs involved with filling a job, including advertising, recruitment event fees (interviewing and screening), onboarding, training, travel costs, administrative costs, and benefits. To determine an employee's salary, it is essential to have a thorough understanding of the city's living costs and other expenditures, as well as the availability of the requisite talent.

8. Employment laws Iceland

There are several rules and regulations to take into account while creating a valid employer-employee relationship. The following is a list of Iceland's employment legislation.

- WorkingTerms and Pension Rights Insurance Act

- Act contemporary Work Agencies

- Act on the equal Status and Rights of Women and Men

- ForeignNationals' Right to Work Act

- Regulation on Foreign Nationals' Right to Work

- HolidayAllowance Act

- Act on the prohibition on Termination of Employment due to Family Responsibilities

- Act on trade Unions and Industrial Disputes

- Act on working Environment and Health & Safety in the Workplace

- industrial

- Act on collective Dismissal

- Act on the right of Workers in the Event of Transfer of Undertakings

- Act fixed-Term Employment

- Act part-Time Work

- Pension Act

- Act on parental Leave

- Act unemployment Insurances

- Act on information and Consultation in Undertakings

- Act on40-Hour Working Week

- Act on the payment of Wages

- Free Right to Employment and Residence within the European Economic Area Act

9. Top skills Iceland

Iceland has a well-developed and active labor market. There are many employment prospects here; the government needs to import around 2,000 foreign employees each year to satisfy the labor need.

For recent graduates, there are several work prospects in the construction, healthcare, information technology, and tourist sectors.

The following industries are major employers in Iceland:

- Aluminiumsmelting

- Fish processing

- Geo thermal power

- Hydropower

- Medical and pharmaceutical products

- Tourism

Fluency in English is a desirable ability in Iceland since it makes you useful in the hospitality business; hotels, restaurants, and/or bars are the major recruiters to promote tourist development.

Reykjavik is not just the capital of Iceland, but also a renowned tourist destination. There are several English-speaking jobs accessible here. Reykjavik has career possibilities for everyone with the right skill set, from recent graduates to seasoned professionals. Several corporations have their headquarters in this city, providing job opportunities in sectors such as:

- Computer hardware and software

- Tourism

- Retail

- Commercial vehicles & trucks

- Alternative energy

- Biotechnology

- Food &beverage

- Marine transportation

- Banks

- Industrial transportation

- Telecommunication

Akureyri is another major tourist destination in Iceland and one of the most important fish business centres. Food processing, hospitality (hotels, motels, and resorts), biotech and pharmaceuticals, and accountancy are all available in the city.

Kópavogur has a wide range of career opportunities for recent graduates and professionals in businesses such as computer hardware and software, IT services, corporate software and network solutions, and so on. This town is also developing its tourist industry, which employs people in hotels, motels, and resorts.

Keflavik is also an Icelandic city with a plethora of career prospects in the metal and mineral manufacturing, household commodities manufacture, industrial manufacturing, airline, banks and credit unions, and networking solution sectors.

10. Economic landscape in Iceland

Because the Icelandic economy is heavily reliant on tourism, the COVID-19 epidemic has created a significant disruption, resulting in a negative growth balance of 6.6% in 2020. Currently, the situation has stabilized to some degree, and household spending has grown, which contributes to the economy's improvement. According to the International Monetary Fund, GDP growth will resume in 2021, reaching 3.7%, before stabilizing at 3.6% in 2022. Exports are likely to grow in the next months, but international tourists will take longer to recover.

11. Market size in Iceland

Iceland's work economy is highly diverse. More than 80% of the workforce is employed in the service industry, which is reasonably steady. The epidemic has marginally boosted the unemployment rate, which will settle as firms resume operations. Iceland is one of the nations that must recruit thousands of foreign employees to fulfill economic demands.

12. Minimum wage in Iceland

Iceland has no official minimum wage. Minimum wages, on the other hand, are determined by collective bargaining agreements that typically cover a single economic sector.

Even though Iceland has no official minimum wage, we can estimate what lower-wage jobs pay in the country. The Efling, Iceland's largest labor union, has its own minimum wage figures. As of 2021, the minimum monthly salary in Efling is 351,000 ISK for a full-time position.

While this may not apply to all Icelandic workers, it is a fairly standard figure for the country. These are gross figures for employees who are at least 18 years old and have worked for the same employer for at least six months. As of 2020, the minimum salary of 351,000 ISK is approximately equivalent to 2720 USD.

13.Why choose Rivermate to hire your remote team in Iceland?

Establishing an entity in Iceland to hire a team takes time, money, and effort. The labor law in Iceland has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Iceland simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Iceland give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Iceland via our Employer of Record (EOR) / PEO solution.

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