Social Assistance Payments

Social assistance compensation is financial support for people living under conditions defined in the Act on Social Assistance. This compensation is conditioned on recipients being domiciled in Iceland, and it is discontinued if their domicile is transferred to another country.

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.

Home-care allowance

Home-care allowances are financial assistance to parents having children grappling with a handicap or serious illness. These are monthly, tax-free payments that parents receive when their children's care is demanding, and the cost for health services, treatment and training has become considerable and burdensome for the parents.

Rehabilitation pensions

Following illness or accident, a rehabilitation pension may be paid for up to 12 months while it is unclear what an individual's future disability will be. These payments begin after per diem sickness and accident payments are finished and continue until a permanent invalidity assessment is made although never longer than 18 months. Income proportionally reduces payments in the same way as for invalidity pensions.

Spouse´s benefit and home-care benefit

Separate caregiver compensation may be paid to the spouse of an old age or disability pensioner if the spouse suffers reduction or loss of income due to taking care of the pensioner. Others living with an old age or invalidity pension can also be entitled to this compensation.

Death benefit

This compensation is paid to people domiciled in Iceland who become a widow or widower before the age of 67. It is generally paid only for six months.

If the person involved is supporting a child under 18, or there are other special circumstances, compensation may be paid for at least 12 months in addition although never longer than 48 months.

Household supplement

A single person receiving invalidity compensation under the Social Security Act and running a household alone may be paid a household supplement. Income reduces the amount of the household supplement.

Supplements to pension

Further compensation may be paid to an old age or invalidity pensioner if it seems apparent that the pensioner cannot support him- or herself without it. Payments are subject to both income and asset limits.

A special supplement may be paid to an old age or disability pensioner if it seems apparent that the pensioner cannot support him- or herself without it. This is based on certain income limits.

Automobile expenses

In certain instances old age or invalidity pensioners, recipients of an invalidity allowance and the parents of children with home-care allowance may be paid a supplement for the purchase of an automobile necessary for the benefit recipients to have because of a substantial mobility handicap. The same applies to a supplement for operation of an automobile of an old-age or invalidity pensioner.

This site was revised 7th January  2015