The Katla Members’ Fund
Member unions within BSRB that negotiate collective agreements for municipal employees, excluding employees of the City of Reykjavík, agreed to establish the Katla Members’ Fund in the collective agreements concluded in March 2020.
Membership in the fund may also include employees of Hjallastefnan as well as employees working in nursing homes who have similar provisions in their collective agreements as municipal employees.
The fund’s annual income amounts to 2.2% of the total salaries of employees who are members of the fund. This amount is then paid into the accounts of members at the beginning of February each year.
Members of the Katla Members’ Fund include all trade unions within BSRB that negotiate for municipal employees, as well as the Icelandic Union of Health Care Assistants and Sameyki for their members employed by municipalities (see list of unions), excluding those who work for the City of Reykjavík.
The board of the fund is composed of representatives from the trade unions responsible for the fund.
The purpose of the fund is to increase opportunities for members’ professional development, for example by supporting participation in education, conferences, congresses and seminars aimed at strengthening their knowledge and professional skills.
Payments from the Katla Members’ Fund
Payments from the fund are made on the first working day of February each year, based on union membership or employment with a municipality that provided eligibility for the fund during the previous year. This applies to all members during that year, including both permanent employees and temporary or substitute staff.
To receive the payment, members must register their bank information on the “My Pages” section of the website. After the main payment has been processed, members can still register their bank account number throughout the year in order to receive payments based on wages from the previous year.
Income tax is withheld at source according to the second tax bracket applicable for each year.
Further information can be obtained from the relevant trade union to which the member belongs.
Tax reporting
Grants from the Katla Members’ Fund must be declared for tax purposes. The Katla Members’ Fund emphasizes the importance of the correct tax treatment of grants in tax returns. It is expected that these grants will be pre-registered in the tax return.
Income tax is withheld at source according to the second tax bracket applicable each year.
The identification number of the Katla Members’ Fund is 411220-0360.
If members have receipts that the tax authorities accept as deductible expenses against the grant, they must submit them with their tax return.