Social security

Depending on your income, you may be eligible for child benefits for every child under the age of 18 years. The child must domiciled in Iceland and be dependent on a parent or guardian with unlimited tax liability in Iceland. Benefits are paid to the parent or guardian with whom the child was living at the end of the previous financial year.

You can find all the information you need from the Directorate of Internal Revenue.

If you are on a low income, you may be eligible for housing benefits in Iceland.

PhD students fall under this category so we advise all PhD students to apply for housing benefits after moving to Iceland and signing a rental agreement.

You can find out who is entitled to housing benefits, how to apply etc. on the Housing and Construction Authority website.

If you are moving from an EU/EEA country to Iceland, you will need to provide evidence of unemployment insurance in your home country if you plan to seek employment and claim unemployment benefits in Iceland. 

The spouse of a UI employee, for instance, who wants to work in Iceland will need to provide a U1 confirmation as evidence of previous unemployment insurance coverage.

If you are from outside the EU/EEA, you are not eligible for unemployment benefits. You will need to provide evidence of financial independence.

More information on unemployment benefits.

If you have been employed in Iceland for six months or longer, you are entitled to paid leave after the birth of your child. You will also be eligible for maternity/paternity leave after adoption or permanent foster of a child younger than eight years old. Each parent might have the right to six months of leave, at the most. Both parents may have rights to 12 months of leave, in total.

If you have earned maternity/paternity leave rights in another EEA state, you may be able to transfer those rights to Iceland. You will need to submit the required documentation of periods worked and insurance coverage along with your application. If you are unemployed, you are entitled to a birth grant if you have been legally resident in Iceland for twelve months or longer.

Please note that if you plan to apply for maternity/paternity leave, you will need to do so six weeks before the due date. Students enrolled in a full-time study programme need to apply three weeks before the due date. All application forms can be found on the Maternity/Paternity Leave Fund page.

All documents required for the application, except medical certificates, can be emailed to faedingarorlof@vmst.is

It is recommended that employees continue to pay dues to their union during maternity/paternity leave. Otherwise, they will lose their rights as union members.

After six months in Iceland, you are covered by Icelandic national health insurance, which includes coverage when travelling abroad to other EEA countries and Switzerland.

You can provide evidence of your insurance in Iceland with the European Health Insurance Card issued by Iceland Health.

The application form and more information can be found here.