Sickness benefits


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Sickness benefits are income based an can amount to 80% or 100% of wages but cannot exceed a certain maximum amount. Duration of sickness benefits can vary from three to six months depending on the employer.

The following documents must be submitted with an application for sickness benefits:

The applicant authorizes the Sickness Benefits Fund‘s physician to review the application and medical documentation. In some cases the applicant may be asked to provide more detailed documentation and/or attend a medical evaluation by the fund‘s physician. The Sickness Benefits Fund is authorized to decline the application for sickness benefits based on the fund‘s physician‘s evaluation


To acquire the right to sickness benefits, the employer needs to have paid premiums to the fund for at least the last three months before the accident/sickness occurs. Full right is acquired after six months. Sickness benefits are paid when a member has made full use of their sickness rights from the employer. The right to sickness benefits can be transferred between unions within the Icelandic Confederation of Labour (ASÍ). More information about sickness benefits can be found here. More information about sickness benefits can be found here.


Documents need to be delivered to the fund by the twentieth of each month, in order to ensure payment at the end of the month. If the twentieth comes up on the weekend the application must be delivered before closing time on the Friday before.

A special deadline is in December.