Pension contributions will not be decreased

Starvsmannafelagið (The Salaried Staff Association) dismisses talk of reducing compulsory pension contributions, despite the increased contributions to the joint and several labour market pension fund.

The pension reform states that the contribution to Samhaldsfasti (the joint and several labour market pension fund) should increase from 4.25% to 6% of salaries in 2020.

Employees pay half of this contribution to Samhaldsfasti, while employers pay the other half.

“The extra amount that employees will have to pay to Samhaldsfasti is not that high, and it should be regarded as a savings contribution, says chairman Súni Selfoss. “That is why we are not planning to reduce the compulsory pension contribution to balance out the increased contribution to Samhaldsfasti.”