Child Support

Child support payments are not deemed to be Social Insurance benefits, but rather the Social Insurance Administration acts solely as a liaison for their payment.

The Municipal Child Support Collection Centre sees to collecting payments from child support payers and reimbursing the Social Insurance Administration.

Child support is paid in accordance with a ruling by the District Commissioner or an agreement confirmed by District Commissioner regarding child support payments and also a judgement or court settlement regarding child support payments.Child support is paid until the child is 18 and is generally conditioned on the child's residence in Iceland. The Social Insurance Administration never pays an amount higher than simple child support although a ruling/agreement stipulates a higher amount.The parent or custodian must collect the difference from the child support payer.

If an applicant for child support is moving to Iceland, child support payments from the former country of residence must be confirmed, and a copy of the child support ruling must also accompany the application.

Single parent´s  allowance

A single parent´s allowance may be paid to single parent who support their children under the age of 18 and are resident in Iceland.
Single parent´s allowance payment shall cease one year after the recipient of the allowance registers himself / herself in the National Register as cohabiting with a person other than the parent of the child / children. The Social Insurance Administration may pay the single parent´s allowance to the spouse of an old-age or invalidity pensioner when his / her social security benefits cease to be paid because of placement in an institution. The single parent´s allowance may be paid to the spouse of a person  who is remanded in custody or who serves a prison sentence providing that the parent has been detained for at least three months.

Child pension

This involves payments because of studies or vocational training of youths, aged 18-20, if one of the parents or both have died; also if the parents are old age or invalidity pensioners, either one or both, or if they do not have the financial wherewithal to pay for education in the view of the District Commissioner. Only a single child pension is paid. The conditions for the payments are that the youth is engaged in fulltime studies in a recognized secondary school, and the curriculum is his or her main work. The curriculum or vocational training must take at least six months each year.

Parental payments

Payments to parents of chronically ill children and seriously disabled children

Parental payment  are payments to the parents of chronically ill or disabled children who can neither engage in studies nor be in the labour market because of their children's illness or disability.

The payments are intended to meet the loss of income of the parents of chronically ill or seriously disability children. This is a joint right of parents.

There are three kinds of payments:

1. Payments to parents on the labour market:

The parents of children diagnosed after 1 October 2007 can be entitled to wage-related payments if it is shown that the parent must quit working because of the illness or disability of his or her child. This involves a joint right of parents for up to three months. Extension for another three months is authorized under special circumstances.

2. Parents engaged in studies

This involves payments to parents having to discontinue studies or take a break from them because of serious illness or disability of their children.

3. General Financial assistance – base payments

This involves payments to parents who are neither working nor studying when a child is diagnosed. Base payments can also be applicable as a continuation of payments to parents who have got wage-related payments and payments to parents engaged in studies. Base payments may be paid until a child turns 18.