Pension (Lífeyrissjóður) for Contractors
Contractors must pay pension contributions to a lífeyrissjóður (pension fund). The total rate is 15.5% — 4% employee share plus 11.5% employer share — calculated on reiknað endurgjald. Fustle pays your pension monthly.
Pension rate: 15.5% (4% + 11.5%)
As a contractor you pay both the employee and employer pension shares:
- Employee share (starfsmannshluti): 4%
- Employer share (vinnuveitandahluti): 11.5%
- Total: 15.5% of calculated remuneration
This is significantly higher than for employees, who only pay the 4% employee share.
Choosing a pension fund
Iceland has several pension funds (lífeyrissjóðir). When you register with RSK 5.02, you specify your chosen fund. Common funds include Gildi, Lífsverk, and Frjálsi.
You can change funds later by submitting an updated RSK 5.02. Fustle reminds you to set up portal access at your fund so payments can be tracked.
Monthly pension payments
Pension is paid monthly to your lífeyrissjóður, reported via staðgreiðsluskil by the 15th. The amount is based on reiknað endurgjald, not invoice income.
Example: reiknað endurgjald of 450,000 ISK → pension payment of 69,750 ISK/month (450,000 × 15.5%). Fustle calculates and pays this automatically.
Pension and your future retirement
Pension contributions build your retirement savings. The mandatory contribution age is typically from age 16 to 70. Your fund invests contributions and pays out pensions from age 67.
Fustle ensures you never miss a payment, protecting both your compliance status and your retirement savings.
Related guides
Official resources
Frequently asked questions
How much pension do contractors pay?
15.5% of calculated remuneration — 4% employee + 11.5% employer share.
Can I choose any pension fund?
Yes. You select your fund when filing RSK 5.02. You can change later with an updated form.
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