Capital region municipalities launch sickness absence drive

Municipalities in Iceland’s capital region have launched a coordinated effort to reduce employee sickness absence, mbl.is reports. A project manager has been hired, and the work is expected to be completed in March 2027.

The project is being carried out through the Association of Municipalities in the Capital Area, known as SSH. Its aim is to develop measures that produce a measurable reduction in absences, improve employees’ health and wellbeing, and make better use of municipal funds.

Reykjavík has previously reported a high sickness absence rate among its employees, significantly above the level generally seen across the wider labour market. The rate was 7.5 per cent in 2024, equivalent to 825 city employees being off sick on an average working day that year.

Reykjavík Mayor Hildur Björnsdóttir has said employee illness has cost the city treasury between six and seven billion Icelandic krónur annually in recent years.

However, there are currently no figures available on sickness absence among employees of the municipalities in the capital region, according to Páll Björgvin Guðmundsson, SSH’s director.

“At this stage, this is an analytical project based on gathering information from municipal human resources managers and others, including which methods have proved effective in reducing sickness absence,” Páll said.

He said decisions on the next steps would be made on the basis of that analysis, including whether to propose methods and procedures for recording sickness absence. Measures based on the project are therefore still some way off, he said, adding that he expects a completed report to be presented to the SSH board in March 2027.