In 2019, Iceland made headlines as one of the first countries to implement a four-day workweek, not by passing a blanket law, but through agreements that allowed workers to negotiate shorter hours. Nearly six years later, the results are clear: this bold move has proven to be a game-changer, not just for the workforce, but for society as a whole.
Initial Fears That Were Finally Put to Rest
Iceland’s experiment began in 2015 with a pilot program involving about 2,500 workers, roughly 1% of the country’s workforce. This small-scale trial exceeded expectations, with 86% of participants voicing their support. Thanks to its success, the program became official in 2019. Today, nearly 90% of Icelandic workers enjoy a reduced workweek of 36 hours, down from the previous 40, with no loss in pay.
When the four-day workweek was first introduced, there were numerous concerns both in Iceland and around the world. Skeptics feared a drop in productivity, higher business costs, and challenges in maintaining service levels. However, the Icelandic experience has put these worries to rest. Reports indicate that productivity remained stable or even increased in some sectors, all while workers reported better mental health, a crucial factor that resonated especially with Generation Z. The decrease in stress, combined with a better work-life balance, had a profound positive impact on employee well-being.
Technology: A Key Factor in the Success
One of the standout aspects of Iceland’s success was its promotion of gender equality. By freeing up time and allowing men to share more in household responsibilities, the four-day workweek encouraged a healthier balance between work and home life. Fathers, no longer bound by traditional work schedules, were able to spend more time with their children and contribute to household tasks.
Unlike countries like Belgium, where the four-day workweek requires making up for lost hours with longer workdays, Iceland maintained the same pay and working conditions, despite the reduced hours. This was made possible by Iceland’s commitment to digitizing businesses and public services. The government’s investment in cutting-edge digital infrastructure, including some of the best internet connections in the world—even in rural areas—supported the shift to remote work and kept productivity high despite shorter office hours.
For Generation Z, who grew up in a digital-first world, adapting to a more flexible workweek was seamless. As digital natives, they found it easier to embrace the new work dynamics, contributing to the smooth transition to the four-day workweek.
An Inspiring Model for the World
The impact of the four-day workweek extends far beyond just the workplace. Icelanders have reported a significant improvement in their quality of life. With more time for leisure, family, and friends, the stress associated with rigid work schedules has decreased, and overall happiness has increased. As María Hjálmtýsdóttir, an activist and teacher, shared, “The reduction in work hours has been a huge success in Iceland and has changed the life of my family. For 90% of Icelanders, the 36-hour workweek means less stress, more job satisfaction, and more time to enjoy life.”
Iceland’s success serves as a beacon of hope for other nations considering adopting the four-day workweek. Pilot projects are currently underway in countries like Germany, Portugal, Spain, and the United Kingdom, while Belgium has legalized the four-day workweek, though with a compensation system that limits its broader adoption.
The Shift Toward a More Human-Centered Approach to Work
Although Iceland’s four-day workweek has been a resounding success, the issue of European Union membership remains a point of division within the country. The upcoming early elections will give citizens the chance to vote on this pivotal issue. While pro-EU parties like the Social Democrats and the Reform Party support joining the EU, other ruling coalition parties, such as the Ecologists, Conservatives, and Liberals, oppose it.
The Icelandic experiment demonstrates that the four-day workweek isn’t just viable—it can offer significant benefits for both workers and society at large. By putting individual well-being at the forefront, Iceland has created a more sustainable and humane work model. As we look to the future, this experiment could very well inspire other countries to rethink their relationship with work, showing that a change in mindset, like the one driven by Generation Z, is not only possible but desirable. The success of Iceland proves that the predictions made by Gen Z about work-life balance are not utopian, but rather a practical blueprint for a healthier future.
