Culture and Holidays in Iceland

Languages

Iceland is a multilingual workplace environment, with Icelandic and English used across industries. While Icelandic dominates corporate settings, English is widely spoken in business sectors, particularly in urban areas. Workplaces often operate in a bilingual manner, depending on the industry and region. 

In corporate sectors like IT and finance, English is the primary language for communication, documentation, and client interactions, especially in multinational companies (MNCs). Meetings, presentations, and official emails are generally conducted in English, though employees may use Icelandic informally. 

In government offices and public sector organizations, Icelandic is commonly used for internal communication and documentation. Iceland recognizes Icelandic as its official language, with minority languages like Polish and Lithuanian spoken by small percentages of the population. 

The manufacturing and retail sectors rely on Icelandic for daily operations, especially in labor-intensive industries. Factories, warehouses, and construction sites primarily use Icelandic, while management-level communication may be in English. 

In customer service, language use depends on clientele. English and Icelandic are common for domestic and international customer support, while many companies also hire speakers of other European languages to cater to diverse customers.

Workplace norms and professional etiquette

Iceland’s workplace culture blends a respect for structure and professionalism with a strong emphasis on equality and open communication. Modern organizations in Iceland value approachability, teamwork, and flexibility, especially in dynamic sectors such as renewable energy and biotechnology.

Workplace hierarchy and authority

While companies maintain clear reporting lines, employees are encouraged to contribute ideas and collaborate across teams. Decision-making may be consensus-driven in progressive workplaces, though senior leadership retains strategic control.

Email and phone etiquette

Business communication is typically professional and courteous. Emails begin with polite greetings and use formal language, while phone calls are respectful and often include brief pleasantries before addressing business topics.

Meeting etiquette and punctuality 

Meetings are expected to begin on time, with a structured agenda. Punctuality is valued. Informal conversation at the start is common and helps foster rapport. Contributions from all attendees are encouraged.

Professional dress code

Traditional industries such as banking may require business formal attire. In contrast, start-ups and tech firms often adopt business casual or smart casual dress codes, especially in hybrid and remote environments.

National holidays

Employees are entitled to the following national holidays: 

• Jan. 1: New Year’s Day 
• Maundy Thursday
• Good Friday
• Easter Monday
• First Day of Summer
• May 1: Labour Day
• Ascension Day
• Whit Monday
• Jun. 17: National Day
• Aug. 4: Commerce Day
• Dec. 25: Christmas Day
• Dec. 26: Boxing Day 

Employees may also receive local or sector-specific holidays depending on their region or industry. Bridging days are sometimes granted when holidays fall near weekends.

Employees who work on public holidays are entitled to compensatory time off or additional pay, as regulated by Iceland’s labor law and collective agreements. Standard rates apply on make-up days unless stated otherwise in employment terms.