Sick leave costs Reykjavík about 6 billion a year

Sickness absence among Reykjavík city employees costs the municipality about 6 billion a year, Mayor Hildur Björnsdóttir said, according to mbl.is. The city’s efficiency group will focus next on the municipality’s property portfolio, procurement and staff sickness absence rates.

Björnsdóttir said the city was concerned about employees becoming ill frequently, but also needed to examine whether the system was being used improperly. The group has a two-year mandate, and she said reducing sickness absence could benefit both employees’ health and the city’s finances.

Reykjavík dismissed 50 employees on Tuesday as part of measures that will eliminate 74 full-time positions in the city’s central administration. The total reduction across the city has reached 130 positions since a new majority took office in June. The latest cuts are the third and final phase of a broader reduction, with vacancies, temporary roles and a hiring freeze also contributing to the total.

The city says the changes are intended to protect frontline jobs and basic services for residents. From June to October, the reductions are expected to have a total financial impact of about 2.3 billion, with permanent annual savings estimated at 1.3 billion.