Social Security

Dependent on your income child benefits is paid with every child under the age of 18 years. The child must have a domicile in Iceland and be dependent on supporters who have an unlimited tax liability in Iceland. The benefits are paid to the one the child is living with and is dependent upon at the end of the previous income year.

All imperative information can be found at the Directorate of Internal Revenue.

Low-income individuals are eligible for housing benefits in Iceland.

Doctorate students fall under this category so we advise all doctorate students to apply when they have moved to Iceland and have obtained a leasing agreement. Information on housing benefits, who are entitled to them, how to apply etc can be found on the Housing and Construction Authority´s website.

Parents employed for six months or longer in Iceland are entitled to a paid leave when a child is born. An adoption or permanent foster of a child younger than eight years old are also eligible.

An international employee with a spouse outside of Iceland has accumulated the right to a maternity/paternity leave for his/her three months and can allocate the mutual three months for his/her use as well. Total of six months.

Those who have earned rights in an EEA state can often transfer their rights to Iceland. A parent must then attach the required certificates regarding periods worked and insurance periods to the application. Those who are not employed are entitled to a birth grant if they have had a legal residence in Iceland for twelve months or longer.

Please note those who intend to apply for a maternity/paternity leave to the Maternity/Paternity Leave Fund need to do so six weeks prior to the expected due date. Students enrolled in a full study program need to apply three weeks prior to the due date. All application forms can be found at the Maternity/Paternity Leave Fund page 

All imperative documents for the application except medical certificates can be sent by email to the fund faedingarorlof@vmst.is

More information on the Maternity/Paternity Leave Fund.

It is recommended that employees continue to pay their dues to their union during maternity/paternity leave. If not they lose the rights with their trade union.

Those moving from an EU/EEA country to Iceland need to proof their unemployment insurance in a home country if they plan on to seek employment and accept unemployment benefits in Iceland. 

Spouse, for instance, who wants to work in Iceland needs to obtain a U1 confirmation to proof the previous insurance coverage in terms of unemployment.

Citizens from outside EU/EEA are not eligible for unemployment benefits. They will in all cases need to proof financial indepence.

More information on unemployment benefits.

After six months in Iceland, you become part of the Icelandic public health insurance and is covered as such when travelling abroad.

When travelling to EU/EEA countries you can proof your insurance in Iceland with the European Health Insurance Card issued by the Icelandic Health Insurance where application form and more information can be found.