Information regarding partial benefit program/reduced employment

If you have not been paid or if you feel that you have been paid too little, then read this to find out the main reasons why this may be the case before contacting us.

Were you paid too little or not at all?

If you have not been paid, then the reason is most likely:

  • Your employer has not yet confirmed your agreement in ‘My pages for employers’ (Mínar síður fyrir atvinnurekanda)
    • You are able to find information about whether or not your employer has confirmed your agreement in ‘My pages’ for jobseekers under Communication history (Samskiptasaga)


  • The wages that your employer registered fully deplete your unemployment benefits.
    • Information regarding the wages that your employer registered is available in your payslip in ‘My pages’

If you feel that you have been paid too little, please consider the following:

  • Now only half of the month is being paid, from the 15th – 31st In April you will receive the full amount.
  • The wages you were paid for your work in March may have depleted your unemployment benefits as the combined total may not be a higher amount than 90% of your average income for the last three months.
    • Information regarding the wages that your employer registered for reduced employment ratio and your average wages for the last three months can be found on your payslip in ‘My pages’

Were your personal tax credits used?

If your payslip states that your personal tax credit (persónuafsláttur) is 0 kr. then you have not selected to use your personal tax credits on your unemployment benefit payments. You can log into My pages for jobseekers (Mínar síður fyrir atvinnuleitanda) to request that they be used at The Directorate of Labour.

Your payment for last month will then be corrected with consideration taken to your request to use your personal tax credits.

Were you subjected to debt set-off?

  • If your payslip for May states “Skuldajöfnun v/ofgreiðslna atvinnuleysis then you have been overpaid unemployment benefits in April. either due in unreported income or due to higher wages due to reduced employment ratio than your income plan indicated. 
  • The amount of overpaid unemployment benefits is stated under the lines: 

    Greiðslutímabilið apríl 2020 (e. payment period April 2020  and Skuld v/ofgreiðslna atvinnuleysisbóta (e. Debt due to overpayment). 

  • The line: 
  • Skerðing v/tekna (e. depletion due to income) means that you received income from elsewhere unbeknown to the directorate. 
  • The line: Skerðing v/hámarksreglna (e. depletion due to maximum rule) means that your wages in reduced employment ratio were higher than your income plan indicated. 
  • The debt set-off for May is never more than 25% of the total benefit amount for the month of May. 
  • Information regarding the depletion of unemployment benefits is available here: 

  • Debt with the directorate is calculated in the following manner: 

Planned income + Income allowance threshold = 0 + 71.262 kr. = 71.262 kr. 

Subtract the amount from actual income, 666.666 kr. – 71.262 kr. = 595.404 kr. 

Divide the amount in two (per the depletion regulation 0,5 kr. against each króna) and the amount is 297.702 kr. See:  


In the line skuld v. ofgreiðslna atvinnuleysisbóta (e. Debt due to overpayment). the amount is 181.785 kr. 

We come to this number by subtracting 115.917 kr. from 297.702 kr. 

115.917 kr. are overpayment deduction points from the last payslip (pension fund, union fees and taxes). 

The individual owes 181.785 and 25% of the payment for May will be deducted to reduce the debt and will appear on the payslip as Skuldajöfnun v/ofgreiðslna atvinnuleysis“ (e. debt set-off due to overpayment of unemployment) 

  • If you feel that the income in question should not cause depletion, then you are required to submit documentation regarding this via My pages for job seekers. There you click on Skila gögnum (e. Submit documents) and upload the appropriate documents. Requests for payment corrections will only be received through My pages. Correctional payments may take two to three months. See: 

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