Unemployment benefit amounts
The following amounts shall apply as from 1 Januar 2021:
Basic unemployment benefit payments are calculated follows:
- Unemployment benefit is ISK 307.430 per month (100% entitlement).
- Unemployment benefit is ISK 230.572 per month (75% entitlement).
- Unemployment benefit is ISK 153.715 per month (50% entitlement).
- Unemployment benefit is ISK 76.857 per month (25% entitlement – minimum entitlement).
ISK 18.445 is paid each month for each dependent child under the age of 18 for whom the recipient is responsible. (This is 4% of full basic unemployment benefit).
Income-related amounts:
Unemployment benefit will be paid at the basic rate for two weeks following your first registration, after which income-related amounts take effect.
- The maximum of income-related unemployment benefit is ISK 472.835 per month.
- Income-related amounts are calculated as follows:
Wage-earners: Income-related unemployment benefit is 70% of your average gross income, based on the six-month period ending two months before you became unemployed.
Self-employed individuals: Income-related unemployment benefit is 70% of your average gross income, based on the income year preceding the year in which you become unemployed.
Your benefit entitlement: The amount of income-related benefit also depends on your benefit entitlement. For example, if you have maximum income-related benefit, but only 50% benefit entitlement, then the maximum amount you can receive is 50% of ISK 472.835 i.e. ISK 236.417. - Your right to receive income-related unemployment benefit is valid for 3 months from the beginning of the benefit period, providing you meet the requirements.
- Please be informed that income-related unemployment benefits have now been temporarily extended from 3 months to 6 months. This applies to all jobseekers who have not fully exercised their entitlement to income-related unemployment benefits. This provision is valid until the 30th of September 2021
- If a waiting period is imposed on your unemployment benefit, you will not be entitled to income-related benefit.
- Applicants only have the right to receive income-related benefit once in each benefit period, this being at the beginning of the period.
