Social Security (Tryggingagjald) in Iceland
Tryggingagjald is Iceland's social security contribution. As a contractor you are your own employer and pay 6.35% of your calculated remuneration (reiknað endurgjald) each month. Fustle calculates and pays tryggingagjald automatically.
What is tryggingagjald?
Tryggingagjald funds Iceland's social insurance system — unemployment benefits, sickness benefits, parental leave, and disability pensions. Employers normally pay this for employees; contractors pay it themselves.
The rate is 6.35% of your calculated remuneration (reiknað endurgjald), not your actual invoice income. This is a key distinction for tax planning.
How the 6.35% is calculated
Tryggingagjald is calculated on reiknað endurgjald — the minimum salary Skatturinn expects you to pay yourself based on your job category (starfaflokkur A–H).
Example: if your calculated remuneration is 450,000 ISK/month, tryggingagjald is 28,575 ISK/month (450,000 × 6.35%). Fustle applies this calculation every month automatically.
Payment and reporting
Tryggingagjald is reported and paid monthly alongside income tax and pension, due by the 15th via staðgreiðsluskil at skatturinn.is.
Fustle includes tryggingagjald in your monthly tax report and deducts it from your balance before paying you the net amount.
Tryggingagjald vs pension
Do not confuse tryggingagjald with pension (lífeyrissjóður). They are separate payments:
- Tryggingagjald: 6.35% — social insurance
- Pension: 15.5% (4% + 11.5%) — retirement savings
Both are calculated on reiknað endurgjald. Fustle handles both in your monthly filings.
Related guides
Official resources
Frequently asked questions
What is the tryggingagjald rate in 2026?
6.35% of calculated remuneration (reiknað endurgjald), paid monthly.
Is tryggingagjald based on invoice income?
No. It is calculated on reiknað endurgjald — the minimum salary for your job category — not actual cash received.
Does Fustle pay tryggingagjald for me?
Yes. Fustle calculates, reports, and pays tryggingagjald as part of your monthly staðgreiðsluskil.
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