Launagreiðandi

Launagreiðandi is an Icelandic noun that refers to an employer or the entity responsible for paying wages to employees. The word derives from “laun” meaning wages or salary and the suffix “-greiðandi,” which indicates someone who pays or distributes. It is commonly used in legal, contractual, and HR contexts to specify the party that executes salary payments, retains salary records, and ensures compliance with relevant labor and tax regulations.

In Iceland, employment contracts explicitly identify the launagreiðandi, as the employer must comply with the Icelandic Labour Act and the Tax Administration’s regulations. The launagreiðandi is responsible for withholding income tax (fiskunefnd), social insurance contributions, and any applicable solidarity contributions from employees’ gross wages. They must also provide annual wage statements (lönaskilningur) and maintain payroll documents for a minimum period specified by law.

Employees may transfer their salary to a bank account that belongs to the same launagreiðandi or to a third party as agreed in the contract, but the legal obligations remain with the employer. In cases of collective bargaining agreements, the launagreiðandi must implement negotiated wage adjustments and benefits specified in the agreement. Disputes involving salary payments are typically resolved by the Labor Court or the Labor Inspectorate, which may investigate whether the launagreiðandi has fulfilled its statutory duties.