heildsalar

Heildsalar is a term used in Icelandic payroll and accounting to denote an employee's total gross earnings for a given pay period before any deductions. The amount typically includes base salary, overtime pay, bonuses, commissions, allowances, and other earnings that form part of compensation. Heildsalar serves as the gross reference point used for calculating withholding taxes, social security contributions, pension payments, and other statutory withholdings, as well as for internal budgeting and wage statistics.

In practice, the net salary is obtained by subtracting from the heildsalar all required deductions, such as income tax and social insurance contributions, and any other withholdings agreed with the employee. The distinction between heildsalar and net salary is central to understanding total compensation and cash flow for both employees and employers. Employers also face additional costs related to employment that are not included in heildsalar, such as employer-paid social contributions and benefits, which together with the heildsalar represent the total cost of employment.

The exact composition of heildsalar can vary by contract, collective agreement, and jurisdiction, but it commonly includes base pay, scheduled overtime, bonuses, and other earnings linked to performance or eligibility. Payslips and annual statements typically itemize the components that comprise the heildsalar and the resulting deductions.

See also: net salary, gross income, payroll, payslip, employer cost.