Social Security Fee (Tryggingagjald) for Contractors in Iceland (2026)
6.35% of your calculated remuneration + employer pension. Paid monthly alongside income tax. FreelancePay handles this automatically.
TL;DR
Tryggingagjald is Iceland's social insurance fee — 6.35% of your gross income (reiknað endurgjald + employer pension contribution). As a self-employed contractor, you pay it yourself. It's reported and paid monthly together with your income tax via skatturinn.is. FreelancePay handles this automatically.
1. What Is Tryggingagjald?
Tryggingagjald is Iceland's social insurance contribution that funds public healthcare, unemployment benefits, parental leave, and disability coverage. As a self-employed contractor, you pay both the employee and employer portions.
Example:
337,040 ISK gross + 38,760 pension = 375,800 ISK base Ă— 6.35% = 23,863 ISK/month
2. How and When to Pay
⚠️ FreelancePay handles this
You never need to remember a deadline. FreelancePay calculates and files automatically on time.
3. What Does It Cover?
Public health insurance
Healthcare and hospital coverage
Unemployment benefits
Eligibility for unemployment support
Parental leave fund
Maternity and paternity leave
Disability & accident
Coverage for injury or long-term illness
Note: Tryggingagjald does NOT replace private insurance or your pension savings.
4. What Happens If You Don't Pay?
Same penalties as income tax: estimated assessment + 1%/day (10 days) + interest. Can also affect eligibility for social benefits.
❌ Avoid penalties — let FreelancePay file for you
5. Tryggingagjald vs. Pension (LĂfeyrissjóður) — What's the Difference?
| Tryggingagjald | Pension (LĂfeyrissjóður) | |
|---|---|---|
| Rate | 6.35% | 4% (minimum) |
| Goes to | State treasury | Your pension account |
| Funds | Public social benefits | Your retirement savings |
| Deadline | 15th of month | 15th of month |
| Separate payment? | No — paid with tax | Yes — to pension fund |
FreelancePay Reports and Pays Automatically
Tryggingagjald, pension, and income tax — all calculated and filed monthly. No missed payments, no penalties.
Start free todayFrequently Asked Questions
What is tryggingagjald?
Iceland's social insurance fee that funds healthcare, unemployment, parental leave, and disability. Self-employed pay 6.35%.
What is the rate in 2026?
6.35% of your tax base: calculated remuneration + employer pension contribution.
How do I pay tryggingagjald?
Monthly via skatturinn.is together with income tax. Deadline is the 15th of each month.
What is the difference between tryggingagjald and pension?
Tryggingagjald goes to the state for public benefits. Pension contributions go to your personal account. Both are mandatory and separate.