Activity grant

From 1 September 2025, individuals receiving a partial disability pension can apply for an activity grant from the Directorate of Labour. A partial disability pension is for those who are assessed as having 26 to 50% capacity for activity in the labour market according to an integrated expert assessment by the Social Insurance Administration. The activity grant is paid for up to 24 months while the applicant is actively seeking employment.

How do I apply?

You can apply for the grant on this page. If you need assistance, you can contact a counsellor at the Directorate of Labour: ams@vmst.is.

Conditions for the activity grant

To be eligible for an activity grant, the applicant must:

• be entitled to a partial disability pension according to an integrated expert assessment by the Social Insurance Administration (Tryggingastofnun),

• have legal domicile in Iceland and be present in the country,

• be an active jobseeker, which means:

  • showing initiative in their job search,

  • being willing to accept a job in accordance with their work capacity,

• not receive a salary or other payments for work,

• be willing to participate in resources provided by the Directorate of Labour,

• provide the Directorate of Labour with the necessary information to be able to offer appropriate support.

Payments

• The activity grant is ISK 71,314 per month.

• The activity grant is paid on the last working day of each month.

• The grant is discontinued when an individual receives payment for work in the labour market.

• No payment is made for days when the applicant is in casual work or staying abroad. Work and travel must be reported on My Pages on the Directorate of Labour website.

Job search support

• Applicants for an activity grant receive individualised support.

• Everyone is invited to an interview with a counsellor where job search goals are reviewed based on their work capacity.

Waiting period and sanctions

Activity grant payments may be suspended for:

2 months, or

3 months in case of a repeated offence

This applies if an individual:

• refuses a job,

• does not attend or refuses a job interview,

• refuses to participate in a labour market measure,

• does not provide necessary information that may affect payments.