Contribution to the fund is 12.5% of a fund member's total wages (fixed wages, overtime and bonuses).
The employee pays 4% and the employer 8.5% according to a wage agreement between the Icelandic Federation of Labor (ASÍ) and the Confederation of Icelandic Employers (SA).
The contribution base shall not include payments which are intended to cover incurred expenses, e.g. vehicle allowances.
Self-employed people pay 12.5% of their total wages, i.e. both the employee's and the employer's contribution.