Contributions and pension
Give social security contributions their own line.
- Updated
- Sources reviewed
- Tax year
- 2026
Social security (tryggingagjald) is 6.35% in 2026, made up of general social security 4.90%, unemployment insurance 1.35%, the Wage Guarantee Fund 0.05% and a market fee 0.05%. The base is salary or calculated remuneration plus the 11.5% employer pension contribution. The self-employed pay it monthly with the withholding return, and it funds the unemployment insurance, parental leave and social insurance they are entitled to.
Key figures
- Total 2026
- 6.35%
- General social security
- 4.90%
- Unemployment insurance
- 1.35%
- Wage Guarantee Fund and market fee
- 0.05% + 0.05%
- Base
- salary + 11.5% employer pension
Income tax is only one part of organising your business finances. Social security contributions also need a place in your plan, alongside pension contributions and other applicable obligations.
What is tryggingagjald?
Tryggingagjald is a payroll-related contribution paid by wage payers and, where applicable, self-employed people on calculated remuneration. Skatturinn publishes a general combined rate of 6.35% for withholding year 2026; special rules can apply. Confirm the correct contribution base and treatment for your circumstances. Skatturinn: social security contributions.
Do not automatically use the invoice amount as the contribution base. Understand the payroll inputs before relying on the result.
Review one period at a time
- Confirm the wages or calculated remuneration used for the period.
- Review the calculation and recorded inputs.
- Check that the relevant information has been submitted.
- Pay the correct claim and retain confirmation.
- Resolve differences before carrying the same assumption into another period.
The withholding instructions explain how a submission connects to a payment claim. Skatturinn: filing and payment. Keep calculations, submissions and payments separate in your own review.
Where does Fustle fit?
Payroll includes calculations and agreed filings for sole traders. On an ordinary subscription, clients pay you directly and you pay taxes and pension contributions yourself. Fustle therefore does not deduct this amount from an ordinary client payment.
Quick answers
Is tryggingagjald the same as a pension contribution? No. Keep the two items distinct when reviewing your business finances.
Does Fustle include personal insurance? Fustle does not become your employer or provide accident or liability insurance. Review insurance for your own activity separately.
Read the pension guide · Compare the plans
Sources checked 23 September 2026. General information; confirm the contribution base and special rules for your business.
Frequently asked questions
Why is social security calculated on the pension contribution too?
The Social Security Contribution Act includes the employer pension contribution in the base. On a 500,000 ISK salary the base is therefore 557,500 ISK and the charge 35,401 ISK.
Is social security deductible?
Yes, it is a business expense that reduces the business's profit in the return, like the employer pension contribution.
When is it paid?
Monthly with the withholding return, final due date the 15th of the next month. The amount appears on the same return as withholding.
Sources
- Skatturinn — tryggingagjaldskatturinn.is/atvinnurekstur/skattar-og-gjold/tryggingagjald
- Skatturinn — staðgreiðsla og reiknað endurgjald í rekstriskatturinn.is/atvinnurekstur/stadgreidsla-og-reiknad-endurgjald/
- Lög um tryggingagjald nr. 113/1990althingi.is/lagas/nuna/1990113.html
General information, not advice on your situation. Skatturinn and other authorities assess each case. Check the review date and sources before relying on a figure.
Related content
- Contributions and pensionGive your pension a clear place in your routine.Organise your pension fund details, contribution records and payments when working independently. Understand your responsibilities and Fustle’s role.
- TaxesCalculated remuneration is not your invoice total.Understand reiknað endurgjald, how it differs from invoice income and where to find current official guidance for your business.
- TaxesWithholding tax: monthly filing on your own salaryHow a self-employed person in Iceland files withholding tax on calculated remuneration: what the return contains, due date on the 1st and final due date on the 15th of the next month, surcharges, wage statements and how withholding is settled at assessment.
- Rights and benefitsRights of the self-employed: what the contributions give youWhat entitlements does a contractor earn through social security and pension contributions? Unemployment benefit, parental leave, sickness benefit, accident insurance, disability and retirement pension. The conditions, and why calculated remuneration sets the amounts.
- Figures and datesFigures for the self-employed in Iceland 2026Every key figure for contractors and the self-employed in Iceland for the 2026 tax year in one place: tax brackets, personal tax credit, social security, pension contributions, VAT rates and registration thresholds, with sources.
Where does Fustle fit in?
Record the work and create the invoice. The service you choose determines the support included.