Spouse and Care Compensation
Spouse and care compensation is intended for individuals who care for their spouse, or another person who lives with the individual (must be a resident) according to rules no. 407/2002 on spouse and care compensation and Regulation no. 1253/2016.
A condition for these payments is that the person in need of care is a recipient of pension payments from TR, e.g. old-age, disability or rehabilitation pension. If the applicant (caregiver) is a recipient of pension payments they are not entitled to spouse and care compensation.
Spouse and care compensation are intended to compensate for loss of income due to a reduced employment rate of caregivers when a pensioner is in need of care in daily life. Therefore, documents showing loss of income must be submitted with application.
Documents supporting the application
- A medical certificate that specifies the pensioners care needs in daily life
- Confirmation on reduced employment rate or resignation/retirement of caregiver
- Pay slips for the last three months before the date of application
- In cases of reduction of presumptive employment income (reiknað endurgjald), confirmation from Iceland Revenue and Customs (Skatturinn) is required
- Confirmation from Iceland Revenue and Customs (Skatturinn) on lack of income if applicable. The date must be the same as that of the application
- Confirmed tax return of the applicant
Frequently Asked Questions
- Applicant must share legal domicile and keep house with the person in need of care
- Applicant can not be a recipient of pension payments from TR
- The person in need of care must be a recipient of pension payments from TR, e.g. old-age, disability or rehabilitation pension
- Applicant must show proof on reduced income, or loss of income, due to care needs of the sick person
An application for Spouse and care compensation is rejected if:
- Applicant receives pension payments
- Applicants income exceeds income threshold
- Applicant receives unemployment benefits, as the applicant is then not considered to have reduced employment rate and is engaged in active job search
- Applicant is engaged in full-time study
- Applicant is not registered at the same legal domicile as the person in need of care
- Reduced income or loss of income can not be shown
- If care takes place outside of daytime working hours
If the applicant's total income exceeds the income threshold, the right to Spouse and care compensation is suspended. The threshold is the same as when old-age pension payments from TR are suspended.
Total income is the applicant's income and the Spouse and care compensation combined.