Union Fees

The fund also collects the following fees for the VR trade union, which are calculated from the same wage base as the 4% pension contribution:

  • Union membership fee 0.7% (félagsgjald), which is deducted from the employee's wages.
  • Health Care Fund 1% (sjúkrasjóður).
  • Vacation Fund 0.25% (orlofsheimilasjóður).
  • Employee Education Fund 0.30% (starfsmenntasjóður)
  • Rehabilitation Fund 0.10% (endurhæfingarsjóður) (The Fund collects this fee and returns it to the Rehabilitation Fund)

* Employers pay a 0.35% Wage Affairs Fee (kjaramálagjald), if they are within the purview of an agreement between VR and The Icelandic Federation of Trade – FA. They are also calculated from the same wage base as the 4% pension contribution.