Iceland ran the world's largest 4-day work week trial — and it worked. Here's everything you need to know about working hours, culture, and life balance in Iceland.
Between 2015 and 2019, Reykjavik City Council and the Icelandic national government ran a landmark trial of 35–36 hour work weeks — with no reduction in pay. Covering 2,500 workers across 100+ workplaces, it was described as an "overwhelming success." The result? Union negotiations secured reduced hours for 86% of Iceland's entire workforce.
Reykjavik City Council and the Icelandic Government launch coordinated pilots testing 35–36 hour work weeks across public sector workplaces — the largest government-run trial of its kind in the world.
Productivity was maintained or improved across most workplaces. Workers reported significantly lower stress and burnout. Physical health and work-life balance improved measurably across all participant groups.
Trials concluded with near-universal positive results. Researchers from Autonomy and the Association for Sustainability and Democracy (Alda) published findings, catching global attention.
Union negotiations led to collective bargaining agreements, giving approximately 86% of Iceland's workforce the right to shorter hours or other flexible work modifications. Iceland becomes a global model.
Iceland's average work week has dropped from 40 to around 35.5 hours following government reform. Office hours shift seasonally — 8AM–4PM in summer and 9AM–5PM the rest of the year. No employee may legally be required to work more than 13 hours per day.
Employees receive a minimum of 24 paid vacation days per year, calculated at 10.17% of total wages. Iceland also provides 16 public holidays annually — one of the most generous holiday packages in Europe. Long-serving employees may earn additional leave.
Even before 2020, roughly one third of Icelanders aged 25–64 worked from home part of the time. While remote work surged during the pandemic, it has since stabilised. As of 2022, approximately 64,000 employees in Iceland work remotely.
Part-time work is exceptionally common in Iceland — 48% of the total workforce is employed part-time. Women are significantly more likely to work part-time (60% of female workers) compared to men (38%).
Iceland's government trials from 2015–2019 covered 2,500+ workers and led directly to collective bargaining agreements giving approximately 86% of Iceland's workforce the right to reduced hours or flexible work arrangements. The Icelandic government maintains strong, active support for shorter work week policies.