Stay in a Medical Institution

A long-term stay of a pensioner in a medical institution can have the effect of suspension of payments from Tryggingastofnun. This happens after a stay in a hospital for a total of 6 months (180 days) in the past 12 months. There must be a continuous stay for 30 days at the end of the period. It is important to notify Tryggingastofnun if the payee is discharged from a medical institution so that pension payments can be resumed.

Personal Allowance

Beneficiaries with an income of less than ISK 128.512 per month may be entitled to personal allowance from Tryggingastofnun. There is no need to apply for personal allowance separately.

  • Personal allowance is maximum of ISK 83.533 per month
  • The calculation is based on the existing income estimate at Tryggingastofnun
  • All taxable income, incl. Pension fund and capital income have an effect on the calculation
  • Payments from Tryggingastofnun, a social welfare office and municipalities do not affect the calculation

Extension of pension payments

It is possible to apply for an extension of pension payments after they have been suspended due to stay in a medical institution. It is extended for a maximum of 3 months at a time. Payments may be extended for a maximum of 6 months in total. Social workers and other staff at the relevant institution provide assistance in applying for an extension.

  • Documents must be submitted to confirm the need for extension and that there are unequivocal costs

Per diem payments outside of institution

Per diem payments may be made for each day the patient stays outside the institution without being discharged.

  • In order to be entitled to per diem payments outside of institution, the applicant must be paid a personal allowance from Tryggingastofnun
  • Payments are made for a maximum of 8 days per month
  • In 2022, per diem payments outside of institution are ISK 4.057 per day
  • The employees of the institution in question apply for per diem payments for the payee

Frequently asked questions

There is no right to an extension if the applicants monthly payment obligations are lower than the payee’s income.

There is no right to an extension if the payee owns assets in cash or securities to the value if ISK 4.000.000 or more. Capital income is always defined as shared income with spouses/cohabitants when calculating benefits at Tryggingastofnun.

  • When the total income is over ISK 128.512  per month
  • When the payee is discharged and thus regains the right to a disability pension
  • When the payee passes away

The spouse of the person who stops receiving pension payments can apply for household supplement. A condition for this is that the spouse is a pensioner with Tryggingastofnun and lives alone.

The personal allowance for each year is reviewed with a settlement after a confirmed tax return is available.

  • Income that is registered in the income estimate at Tryggingastofnun is compared with actual income according to the tax return
  • If it turns out that the personal allowance was underpaid, the credit will be paid
  • If the personal allowance was overpaid, a claim is formed which is collected
  • Application for extension of pension payments must be made within 6 months of payments being suspended
  • Payee that has been approved for extension of a total of 6 months is eligible to re-apply after a period of one year after last extension was approved. A condition is that pension payments must have been resumed in the interim