For years, the idea of a four-day workweek was met with skepticism, with concerns over productivity losses, increased business costs, and operational challenges. However, Iceland has defied expectations, proving that reducing work hours doesn’t have to come at the expense of efficiency. After a successful pilot program, the country officially adopted the 36-hour workweek in 2019, with nearly 90% of the workforce now benefiting from shorter hours—without a pay cut.
From Experiment to National Policy
Iceland’s journey toward a shorter workweek began in 2015, with a government-backed pilot program involving 2,500 workers—roughly 1% of the country’s workforce. The results were overwhelmingly positive, with 86% of participants supporting the initiative. Employees reported better mental health, improved work-life balance, and reduced stress, all while maintaining—or even increasing—productivity in some sectors.
By 2019, the Icelandic government formalized the policy, making it one of the most ambitious national labor reforms in recent history. Today, most Icelandic workers enjoy a 36-hour week instead of the traditional 40, setting a precedent for other nations considering similar reforms.
Why Productivity Didn’t Decline
One of the biggest fears surrounding the four-day workweek is a potential drop in productivity. However, Iceland’s experience tells a different story. Workplaces adapted efficiently, cutting unnecessary meetings, streamlining workflows, and encouraging employees to work smarter, not longer.
Studies following the reform showed that output remained stable or even improved in many industries. The key factor? Employee well-being. With lower stress levels and better-rested workers, efficiency naturally increased. Generation Z, in particular, has championed this shift, prioritizing flexibility and mental health over the rigid structures of traditional work schedules.
A Step Toward Gender Equality
Beyond economic and productivity benefits, the four-day workweek has also contributed to greater gender equality. By freeing up time traditionally spent at work, it has encouraged a more balanced distribution of household and childcare responsibilities. Men in Iceland now have more opportunities to share domestic duties, a shift that could have long-term positive effects on family dynamics and workplace inclusivity.
Unlike in some countries—such as Belgium, where a four-day workweek requires longer daily hours to compensate for lost time—Iceland’s model maintains full salaries and standard working conditions, without making employees work extra-long shifts.
How Technology Made It Possible
A major factor behind Iceland’s successful implementation was its digital infrastructure. The government invested heavily in high-speed internet and digital transformation, allowing businesses to maintain efficiency despite shorter office hours. Remote work capabilities and streamlined online services played a significant role in ensuring that productivity remained intact.
This shift was particularly seamless for younger generations, who grew up in a tech-driven environment. Digital natives quickly adapted to the new workflow, demonstrating that technology and workplace flexibility can go hand in hand.
A Global Model for the Future?
The impact of Iceland’s four-day workweek extends beyond office life. Workers report higher job satisfaction, more time for family, hobbies, and personal well-being, and a better quality of life overall.
María Hjálmtýsdóttir, an Icelandic teacher and activist, describes the shift as transformative:
“The reduced workweek has completely changed my family’s life. For 90% of Icelanders, it means less stress, better job satisfaction, and more time to actually enjoy life.”
Iceland’s success has not gone unnoticed. Several countries, including Germany, Portugal, Spain, and the UK, have launched pilot programs to test similar models. Belgium has already passed legislation allowing for a four-day workweek, though with a different structure.
While debates over labor policies continue worldwide, Iceland has demonstrated that reducing work hours is not just possible—it’s beneficial. By prioritizing worker well-being, gender equality, and technological efficiency, the country has created a model that may well inspire others to rethink the traditional five-day grind.
