Shorter workweek costs Icelandic state ISK 35 billion
Thursday 15th October 2026 on 08:45 in
Iceland
Iceland’s shorter working week has cost the state about ISK 35 billion over five years, adjusted to 2026 prices, according to a report cited by Morgunblaðið.
The report, submitted to parliament by the finance and economic affairs minister, was prepared at the request of Guðlaugur Þór Þórðarson, an Independence Party MP, and other lawmakers. It puts the annual cost at about ISK 6.9 billion in 2026 prices, with most of the increase linked to shift workers.
Examples of additional costs in 2022, adjusted to 2026 prices, include ISK 951 million for law enforcement, ISK 2.774 billion for Landspítali hospital, ISK 1.833 billion for nursing and residential care places, ISK 296 million for Akureyri Hospital and ISK 632 million for other regional health institutions.
“These are significant sums, and we have to ask ourselves, when we are spending nearly ISK 7 billion a year on this, whether we want to use the money to shorten the working week or whether there is a will to do this in some other way,” Guðlaugur Þór told Morgunblaðið.