Calculated Remuneration (Reiknað endurgjald)

As a contractor you are both employer and employee. Skatturinn requires you to pay yourself a minimum "market wage" called reiknað endurgjald — even if your actual invoice income differs.

This amount is the basis for calculating income tax, tryggingagjald (6.35%), and pension (15.5%). Fustle tracks and reports your reiknað endurgjald every month.

Skatturinn publishes reference amounts (viðmiðunarfjárhæðir) annually by category:

• Category A (doctors, lawyers): from ~670,000 ISK/month
• Category B (engineers, accountants): from ~530,000 ISK/month
• Category C (designers, photographers): from ~450,000 ISK/month
• Category D (technicians, trades): from ~430,000 ISK/month
• Categories E–H: progressively lower minimums down to ~290,000 ISK/month

Select your category on RSK 5.02. Fustle uses it for all tax calculations.

If your annual calculated remuneration is under 700,000 ISK, you are exempt from registering on the employer registry (launagreiðendaskrá). You still owe tax on actual income received.

This exception is useful for very part-time or seasonal contractors. File RSK 5.02 noting the exemption if applicable.

You may reduce calculated remuneration if:

• You have another job paying more than 50% of the reference amount
• Your actual business income is significantly lower

Minimum reduction: never below 25% of the reference amount for your category. Submit an updated RSK 5.02 to change your registered amount. Fustle adjusts calculations automatically.

Fustle stores your registered starfaflokk and calculated remuneration from RSK 5.02. Each month it calculates income tax (using 2026 brackets and 72,492 ISK personal tax credit), tryggingagjald (6.35%), and pension (15.5%) on this base.

If your income changes, Fustle alerts you to update your registration.