Iceland's 4-Day Workweek: A Six-Year Success Story in Productivity and Well-Being

In 2019, Iceland embarked on a groundbreaking labor reform by implementing a 4-day workweek without reducing pay. Six years later, the results have exceeded expectations, with improvements in worker well-being, productivity, and economic stability. The experiment, hailed as “transformative” by labor researchers, validates the vision long held by Generation Z — that less rigid working structures could lead to more humane, efficient workplaces.

Between 2015 and 2019, two major trials of reduced working hours were conducted in partnership with Iceland’s national and municipal governments. These trials covered over 2,500 employees — over 1% of the country’s working population — and involved various sectors, including public administration, education, social services, and healthcare.

The experiment reduced working hours from the traditional 40 hours per week to 35 or 36 hours, without any cut in pay. Tasks were reorganized, meetings streamlined, and non-essential activities trimmed to maintain output levels. According to Alda (Association for Sustainability and Democracy), which co-managed the study with UK think tank Autonomy, workplaces adapted efficiently, and employees were empowered to suggest ways to save time.

The trials demonstrated that productivity remained consistent or improved across most workplaces. Employees reported reduced stress, lower burnout rates, and enhanced work-life balance.

Surveys conducted during and after the trials revealed:

• 86% of participants felt less stressed,

• 71% reported decreased levels of burnout,

• and over 90% preferred the shorter workweek model (Alda & Autonomy, 2021).^[1]

This translated into improved mental health, better family life, and enhanced focus during work hours. As of 2025, over 86% of Iceland’s workforce is either working reduced hours or has access to rights that allow for flexibility.

Contrary to concerns, the reduced workweek did not hinder economic performance. In 2023, Iceland's economy grew by 5%, surpassing many European peers, and maintained a low unemployment rate of 3.4%

In fact, shorter hours reduced absenteeism and improved retention rates, lowering recruitment and training costs for employers. Some companies even reported lower utility and operational expenses due to fewer workdays.

The reform also contributed to greater gender equality, as men engaged more in household responsibilities. Furthermore, the shift allowed employees more time for personal pursuits, leading to improved mental health and job satisfaction.

Iceland's success has inspired other countries, including Germany, Portugal, and Spain, to explore similar models. The initiative serves as a testament to the potential benefits of reimagining traditional work structures.

References:

1. Alda & Autonomy. (2021). Going Public: Iceland’s Journey to a Shorter Working Week. Reykjavík, Iceland: Association for Democracy and Sustainability (Alda) and Autonomy Research Ltd.

2. Rubila, Bob. “Iceland Approved the 4-Day Workweek in 2019, Nearly 6 Years Later All the Predictions Made by Generation Z Have Come True.” Farmingdale Observer, May 31, 2025. https://farmingdale-observer.com/2025/05/31/iceland-approved-the-4-day-workweek-in-2019-nearly-6-years-later-all-the-predictions-made-by-generation-z-have-come-true/.

(Input from various sources)

(Rehash/Sakshi Thakar/MSM)