Central

The Ministry of Welfare is responsible for:

• General labour legislation, including labour law and the basic principles governing workers’ rights and obligations;
• Labour market measures;
• Work permits;
• Maternity and paternity leave and rights of working parents;
• Working environment, health and safety in workplaces; and
• Establishing and maintaining equal status and equal opportunities for women and men by working against wage discrimination and other forms of gender-based discrimination on the employment market.
  

The primary objective of the economic activity plan for Iceland until 2020 (government policy statement for the economy and community) is to create new and diversified jobs, which are well paid, generate money, and boost Iceland’s competitiveness. This includes reducing the unemployment rate from 7% in 2010 to 3% in 2020. 

Responsible ministries/bodies

Ministry of Welfare 

Local

Local authorities create opportunities for job creation and skills development.

Municipalities are among the largest employers in Iceland and also run independent operational units or companies, such as water utilities, heating utilities, social apartments and harbours which create many work opportunities at the local level.

About 60% of municipalities' tax revenues go to paying employee wages and wage-related fees.

Sources:

Ministry of Welfare Association of Icelandic Local Authorities in, Local governments in Iceland

Iceland 2020 – governmental policy statement for the economy and community