The employer is responsible for paying premiums to the relevant pension fund.

The employer is responsible for ensuring that the premiums are deposited in the fund in question: 4% from the employee and 11,5% from the employer, for a minimum of 15,5% of each person’s total wage.

However, there are exceptions to this, e.g. contribution according to fishermen’s collective wage agreements is lower.

To ensure correct payments, the person in question must compare their pay slips and payment statements from the pension fund. In the event of any failure to do so, pension rights may be lost.

Payments to pension funds begin in the month after the 16th birthday and end when the age of 70 has been reached. Contributions from fund members who have reached the age of 70 are accrued to the Personal Savings Department in the name of the Fund member.

Good to Know

  • Do I have to pay a premium to Gildi?

    Nine trade unions are members of Gildi, in addition to the Confederation of Icelandic Employers. All employers with operations in the professions for which the nine unions have entered into collective wage agreements are under obligation to pay the pension premiums of their employees to the Gildi mutual pension division. It is not permitted to pay into mutual insurance funds of other pension funds.

  • Why am I paying a pension premium at Gildi?

    According to the law, all employees are required to be members of the pension fund of the respective profession. Payments to the pension fund begin the month after your 16th birthday and end in the month of your 70th birthday.

    Nine trade unions are members of Gildi, as is the Confederation of Icelandic Employers. All employers with operations in the professions for which the nine trade unions have concluded a collective wage agreement are obliged to pay their employees’ pension contributions to Gildi’s mutual insurance. It is not permitted to pay into mutual insurance funds of other pension funds.

  • How do I pay a pension premium at Gildi?

    The employer is responsible for ensuring that the premiums are deposited, 4% from the employee and 11.5% from the employer. However, there are exceptions to this, e.g. contribution according to fishermen’s collective wage agreements is lower.