December supplement
All employers in Iceland are obliged to pay their employees compensation with December wages, according to collective agreements.
Anyone who has worked 100% for 45 weeks a year is entitled to a full December bonus. If people work part-time, they are also entitled to a December supplement, but they will be paid according to their employment rate. In order to be entitled to minimum compensation, people must have worked continuously for three months during the year, and are then paid according to the employment rate and working hours.
The amount of the December bonus depends on the collective agreement. It is best to seek information from the trade union in which the employees are registered, in order to know how high the amount should be in each case.
December compensation in Regla
1. Go to the relevant Union and enter the amount of the compensation that it is estimated for the year in question.
Salary > File administration > Trade unions
2. Create a payroll run for December
When a payroll run is created for December, the salary item for the December supplement is automatically entered for the employees and also the amount entered into the Union's payment item (item 1).
If the Salary item does not come in automatically, you need to go to Salary > File administration > Salary items, to find:
salary item no. 130 (December supplement) and check whether it is written "November" in the column "In month".
If this column is empty, the wage item is not entered automatically and then it must be changed into Salary items.
If a December supplement has to be paid out in a month other than December, such as e.g. upon the employee's retirement, it will be necessary to go into this salary item and delete "November" from it, so to keep that item empty.
You can then enter the salary item at any time.
If a month is entered in the column, the system does not allow the salary item to be used in a month other than the one in the field.
3. Enter the correct December compensation for the employee in the salary run.
As mentioned, not everyone is paid the December bonus in full. It depends on each person's employment rate, and it also depends on how many months the employee has worked during the year.
In Regla, it is not possible to automatically calculate how much of a percentage of the December supplement each person is entitled to, it is therefore necessary to
manually calculate per each employee, the correct amount or the correct percentage.
You can insert the calculated December amount according to the rights of each individual, in two ways:
1. Change the amount that has been entered directly into the salary item during the salary run.
If this method is to be used, i.e. to calculate what amount the person should receive based on the employment rate, you have to MAKE SURE that no is entered in the columns "Calculated amount", "Allow %", and "Register count".
Under Salary / File administration / Employees, you need to enter the manually calculated amount the Amount (rate) column:
If "Yes" is entered in these three columns that can be seen in the picture, you need to go into Salary items and change to "No".
To change a salary item, go to Salary > File administration > Salary items.
The salary item should look like this, it can be changed by clicking on the column to be changed.
2. Insert a percentage of the December bonus into the employee salary
If this method is to be used, make sure that "Yes" is entered in the column Allow % and enter the number both for those with 100% compensation and for those with partial compensation, based on employment rate and hours worked during the year.
Under Salary / File administration / Employees, you need to enter a percentage of the number, if not full compensation, under the Count column:
The number 1 must be entered here if there is a full benefit and "Yes" is entered in "Register count".
IT IS VERY IMPORTANT TO INSERT nr.1 IN THE COUNT, WHEN YES IS ENTERED IN THE REGISTER COUNT, OTHERWISE THE AMOUNT WILL FALL OUT!!!!!!!
The way people choose to enter partial benefits varies, with some finding it easier to calculate percentages, and others finding it better to calculate benefits.
If a percentage is entered as in step 2, then it will appear on the payslip, what percentage of the benefits the person receives.
Example of a payslip when entering a number in a percentage:
