In 2019, Iceland attracted worldwide attention by becoming one of the first nations to embrace the four-day workweek, not through a sweeping legislative change, but via negotiated agreements that allowed employees to reduce their hours without a cut in pay. Now, five years later, the results are clear and overwhelmingly positive.
The initiative actually began in 2015 with a pilot program that included approximately 2,500 workers, just over 1% of the country’s workforce. The pilot was met with overwhelming approval, as 86% of the participants expressed strong support for the shortened workweek. This success laid the foundation for a broader rollout in 2019. As a result, today nearly 90% of Icelandic workers enjoy a reduced 36-hour workweek, down from the traditional 40 hours, all without any reduction in their salaries.
Initially, the idea of a four-day workweek sparked considerable skepticism, both within Iceland and internationally. Critics worried that trimming the workweek would lead to decreased productivity, increased costs for employers, and difficulty maintaining consistent service levels. But these concerns have largely proven unfounded thanks to Iceland’s experience.
According to official reports, productivity in Iceland has either remained steady or improved in certain sectors. One of the most significant contributors to this positive outcome has been the improved mental health of employees. The mental well-being of workers, especially highlighted by Generation Z, has become a key factor in evaluating the impact of this policy. A noticeable reduction in stress and a more balanced work-life dynamic have contributed to better overall health and job satisfaction among employees.
One particularly striking outcome of Iceland’s move has been a boost in gender equality. The shorter workweek has allowed men to become more engaged in domestic life, leading to a more equitable distribution of parenting and household responsibilities. Unlike in countries such as Belgium, where reduced workweeks are offset by longer working days, Iceland has opted to keep both pay and working conditions the same, even with fewer hours worked. This decision has played a pivotal role in the country’s success.
This smooth transition has also been facilitated by a significant push toward digitalization. The Icelandic government has invested heavily in building digital infrastructure, resulting in some of the world’s best internet connectivity—even in remote regions. This has enabled remote work to flourish and allowed productivity to remain high, despite the reduced number of hours spent in physical workplaces. A report from el diaro emphasized that this infrastructure has supported telecommuting, ensuring that reduced office time does not compromise efficiency.
Generation Z, having grown up in a tech-savvy environment, has adapted easily to this new model of working. Their natural familiarity with digital tools and platforms has helped ease the transition to the four-day week, allowing both businesses and public services to function effectively with fewer in-person hours.
But the benefits of Iceland’s four-day workweek extend beyond the workplace. Citizens report notable improvements in overall quality of life. With more free time, people are spending more moments with family, enjoying leisure activities, and nurturing personal relationships. The stress tied to time pressure has significantly diminished, and general happiness levels have risen.
María Hjálmtýsdóttir, a teacher and activist, spoke about how this shift has transformed her personal life. “The shorter working week has been a great success in Iceland and has changed my family’s life. For 90% of Icelanders, the 36-hour week means less stress, more job satisfaction and more time to enjoy life,” she shared.
This Icelandic approach has started to inspire similar experiments across Europe. Countries like Germany, Portugal, Spain, and the UK are currently conducting pilot projects to test the four-day model. Meanwhile, Belgium has passed legislation supporting the concept, though its version compensates for fewer days with extended daily hours—an approach that has slowed its widespread adoption.
Despite these advancements in working conditions, Iceland remains divided on the matter of joining the European Union. This topic is expected to be a major talking point in the upcoming early parliamentary elections scheduled for Saturday. The Social Democratic and liberal Reform parties are the only groups clearly in favor of EU membership. In contrast, the current ruling coalition—comprising ecologists, conservatives, and liberals—remains opposed.
Still, Iceland’s success with the four-day workweek underscores a powerful lesson: reducing work hours without sacrificing pay or productivity is not only feasible, but beneficial on multiple fronts. By prioritizing worker well-being, the country has moved toward a more humane and balanced model of labor. The benefits ripple beyond individuals to families and communities, showing that rethinking our relationship with work can yield meaningful improvements in quality of life.
Generation Z has played a crucial role in championing this shift. By advocating for work models that better align with mental health and personal well-being, this generation has helped set the stage for broader changes in how society views employment. Iceland’s achievements suggest that their vision for the future was anything but unrealistic. As the rest of the world watches, Iceland offers a blueprint for a sustainable and people-centered approach to work—one where the job adapts to human needs, rather than demanding that people bend themselves to fit outdated expectations.
In a world increasingly focused on finding a healthier work-life balance, Iceland stands as a shining example of what is possible when forward-thinking policy meets practical execution. As more nations explore this model, the conversation around how we work—and how much—is bound to evolve.