Those who are entitled to the payment of wages according to the Act are:

• Employers who have paid wages to employees who are not able to perform their work at the workplace in Grindavík due to a natural disaster.

The conditions of the payment of wages are:

• That employees are not able to work at the employer’s workplace in Grindavík.
• That employers pay their employees wages who are not able to perform their work in Grindavík.
• That the company operates on the general labour market.

• No the condition for support is that employees have been working at their workplace in Grindavík but not that they are domiciled there.

• If the employer’s employees receive recruitment grants they are not entitled to payments for their employees for the same period as the grants are for.

• Employers apply for payments via employers’ My Pages. My Pages

• If The Directorate of Labour needs further documents then you will be contacted.

• Employers can apply for support for the payment of wages until the 30th of septemberst 2024.

Support for the payment of wages to employers is based on employees’ average wages in the calendar month or calendar months when the employees are not able to perform their work due to the natural disaster in Grindavík.

Wages are any type of wages and commissions according to The Act on Social Insurance Contributions as well as an employer’s contribution to a pension fund.

Support for the payment of wages to employers is based on employees’ average wages in the calendar month or calendar months when the employees are not able to perform their work due to the natural disaster in Grindavík.

Wages are any type of wages and commissions according to The Act on Social Insurance Contributions as well as an employer’s contribution to a pension fund. 

 Payments depend on the wages which the employer pays to the employee

• but they can never exceed 633.000 kr. for a full calendar month. In addition, The Directorate of Labour pays 11,5% of that amount to the employer as a counter contribution from the employer to a pension fund.

• Yes, but The Directorate of Labour never makes payments for more than 633.000 kr. for a full calendar month. Employers then pay the difference to their employees when their wages are higher than the amount paid by The Directorate of Labour.

• If the employers had to terminate the employment of their employees on the 11th of November, then the employer is entitled to a payment which is 67% of wages for that month (10/30=33%).
• Example: The employer pays an employee 500.000 kr. in wages for a full November month, the payment to the employer will then be 333.330 kr. plus 11,5% of that amount which is the employer’s counter contribution to a pension fund (500.000 * 0,67).

• Employers can always pay dividends to themselves. But if dividends are paid by the employer from the 1st of March 2024 to the 28th of February 2025, the employer must reimburse the above mentioned support before the dividends are paid out.

This is because:

• The purpose of this safety net is to enable employers to continue their operation when dealing with operational difficulties in Grindavík. It is therefore important that employers reimburse the support they have received from the authorities for the payment of wages, if a decision will be made to pay dividends in light of operating results shortly after the employer has received the support from the authorities regarding the payment of wages to employees.