Pension in Iceland (2025)
TL;DR
All workers — including freelancers — must pay 15.5 % to a pension fund (4 % employee + 11.5 % employer). FreelancePay pays both shares for you automatically.
Mandatory Pension Contributions
- Employee share: 4 %
- Employer share: 11.5 %
- Total: 15.5 % of income — Learn more at Lifeyrismal.is
Supplementary Savings
Freelancers can add 2–4 % extra (tax‑deductible) supplementary savings.
Pension Reporting for Freelancers
- Calculate both shares (employee + employer).
- Report and pay monthly.
- Keep confirmations for year‑end filing.
Why FreelancePay is Simpler
- No manual forms or transfers
- Rates and payments handled automatically
- Integrated with pension fund reporting