Information regarding COVID-19

Parliament has passed the Minister of Social and Children’s Affairs’ bill on the entitlement to the payment of unemployment benefits alongside reduced employment ratio due to temporary company recessions. Furthermore, Parliament has passed a bill on temporary payment of wages to individuals subjected to quarantine without showing signs of infection according to instructions from the health authorities.

Please note that it is crucial that all documents are submitted via 'My pages' (Mínar síður) at The Directorate of Labour.

Employee’s reduced employment ratio

If the employer and employee reach an agreement on temporary reduced employment ratio, the employee is able to apply for unemployment benefits opposite the reduced employment ratio. Under the tab ‘reduced employment ratio’ here below, you are able to find further information about the recourse.

Self-employed individuals

According to the Act’s amendments, self-employed individuals are not required to cease operations to be entitled to unemployment benefits, only notify the tax authorities of recession of operations (form RSK 5.02). Self-employed individuals apply for conventional unemployment benefits on the grounds of acquired entitlement.

Self-employed individuals apply for unemployment benefits via ‘My pages’ (Mínar síður) for jobseekers at The Directorate of Labour.

More information about self- employment

Quarantine payments

The bill on quarantine payments has been passed by Parliament. The Directorate of Labour is working on posting further information on their website. In the meantime, we direct you to the Government of Iceland’s website: https://www.stjornarradid.is/default.aspx?pageid=5019e212-3ce9-491e-aaaf-7d8617cfab77#Tab1