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Support and Benefits

All workers in Iceland are legally required to pay a portion of their income into a pension fund. A fund member that has contributed to a fund for at least two years is entitled to disability benefits if their disability has been assessed as a loss of at least 50% of work capacity and their disability results in reduced income.

People who have an assessed disability may be entitled to various benefits and other payments. Benefits are determined by a range of factors including the assessed degree of disability and other individual circumstances.

Recipients of disability benefits are strongly advised to review the regulations on the impact of income, as recipient income is a determining factor when most types of benefits are calculated.

Recipients are also required to submit an estimate of their annual income for the coming year, which is used in calculating benefits for that year. The Social Insurance Administration will send recipients with a predetermined income estimate, which the recipient can correct if necessary.

Parents of children with serious disabilities or chronic illness are entitled to parental benefits, which are available from the end of parental leave until the child is 16 or 18.

Spouses and other people living in the same household as recipients of disability benefits may, under certain circumstances, be entitled to spousal or support benefits.

Benefit recipients must notify the Social Insurance Administration if there any changes to their circumstances.

Laws and Regulations

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