Recalculation for the year 2020 - credits are paid out June 1st

31. maí 2021

The Social Insurance Administration has recalculated income-linked benefits for the year 2020. Credits for underpaid benefits will be reimbursed on June 1st. The results of the recalculation can be viewed on the inner website, Mínar síður. 

About 37 thousand individuals who received income-linked benefits last year, or around 60%, will be reimbursed. In most cases the amount will be under 35.000 kr. About 20 thousand individuals, or around 30%, were overpaid and will need to repay in accordance with the results. Repayments will start on September 1st. A decrease of about 10% can be seen in overpayments compared with the year before, 2019.  

The effects of the Corona pandemic can be detected in the recalculation since in many cases pensioners’ income was lower than they had estimated. 

Results on Mínar síður 

Individuals’ payment is based on their income estimates (tekjuáætlun), e.g. what they estimate their income will be that year. The recalculation is then based on information from confirmed tax returns the following year. This comparison will reveal whether pensioners got the correct payments or were under- or overpaid. 

Deviations are normal in the recalculation since it can be difficult to estimate the income correctly. It must be pointed out that relatively small changes in income can cause deviations on payments in the recalculation.  

Possible reactions to the result of the recalculation and repayments of debts 

A pensioner that has any comments on the results of the recalculation can request a reasoning, object the results, or contact the Tax office for changes on the tax return. 

The general rule is that debts must be repaid in 12 months, but it is always possible to contact The Social Insurance Administration if that turns out to be too difficult and negotiate for a longer period. 

Electronic service 

Pensioners are encouraged to check the results on Mínar síður and use electronic service routs for any questions. Common questions about the recalculation is answered on under spurt og svarað.