Unemployment benefit amounts

The following amounts shall apply as from 1 Januar 2016:

Basic unemployment benefit payments are calculated  follows:

  • Unemployment benefit is ISK 202.054 per month (100% entitlement).
  • Unemployment benefit is ISK 151.541  per month (75% entitlement).
  • Unemployment benefit is ISK 101.027 per month (50% entitlement).
  • Unemployment benefit is ISK 50.514  per month (25% entitlement – minimum entitlement).

ISK 7.368 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 318.532 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 318.532, i.e. ISK 159.266. 

  • 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.
  • 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. 
 
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