Cash sickness benefits

• You apply at Ísland.is.  

• You upload supporting documents in the application. It is sufficient that there are clear pictures of the data. 

• Applications are generally processed in 4 to 6 weeks. If Iceland Health asks for further documentation, it is processed in a week.  

• You do not need to reapply for cash sickness benefits. 

• You only submit a postgraduate certificate from a doctor.  

• Extensions are generally processed in 3 days.  

Individuals who are: 

• Completely unable to work for at least 21 days. 

• Who has health insurance in Iceland. 

• 16 years of age or older. 

• With legal domicile in Iceland (right remains for 2 months after moving abroad). 

• Not in prison. 

The applicant must also have been one of the following in the last 2 months before the illness: 

• An employee in Iceland (work abroad does not entitle you to cash sickness benefit). 

• Self-employed in Iceland (based on calculated remuneration or invoices for outsourced work).  

• On unemployment benefits (must have been deregistered during illness).  

• At least 75% are studying and have experienced delays in their studies due to the illness. 

• In less than 75% study combined with part-time, if part-time work and studies reach a combined 75%.  

If none of the above applies, it is sufficient that the applicant is fully unable to do housework according to the doctor's assessment. 

While you are receiving cash sickness benefits, you may not receive: 

• Salary from employer. 

• Payments from the Maternity/Paternity Leave Fund. 

• Payments from the Directorate of Labour. 

• Payments of accident per diem payments. 

• Full pension payments from Tryggingastofnun. 

Cash sickness benefit certificate from a doctor. 

• It is not enough to submit a medical certificate to the employer.  

Note: A doctor must fill in the incapacity field on the certificate. Check if it was not safely done when you receive the certificate. If the field is empty, payment is only made for the month in which the certificate is issued. 

Information on the status of the last 2 months before illness.  

• Everything that applies must be returned.  

• If the applicant is both an employee and a student, documentation must be submitted for both. 

Employees must submit: 

Employer's certificate. 

• The certificate must be signed if it does not come through the Data Portal. 

• Sometimes other documents (such as severance agreements) will suffice, but it must always be stated when you became fully unpaid, along with your employment ratio. 

Self-employed persons must submit: 

No special supporting documents are required. 

• Calculated remuneration must be cancelled by the Directorate of Internal Revenue for the period you are unable to work.  

• The application grants permission to inspect registration with the Directorate of Internal Revenue. 

Unemployed people must submit: 

• Confirmation from the Directorate of Labour of the date of deregistration. 

• The last payment slip from the Directorate of Labour with the percentage of benefits.  

Students must submit: 

A school certificate that specifies the number of credits in studies and which courses were not completed during illness. 

Individuals working from home must submit: 

No special supporting documents are required with the application when the applicant is unable to do housework. 

• It is reported that sick leave rights from the employer have ended. No payment is made for the first 14 days of illness, even if the applicant does not have sick leave rights for those days. Accumulated entitlements (up to 6 months) are paid based on all documents being received.  

• After that, payment is made every 14 days for the duration of the certificate.

• Cash sickness benefits are a fixed amount for each day paid.  

• Full or half cash sickness benefits payments are paid. 

• Child supplement is paid for children under the age of 18 who are supported by the applicant. 

Note that cash sickness benefits are taxable. If you want to use personal tax credit, you must register the use of your tax card under Register personal tax credit. Iceland Health employees are not allowed to register tax cards for individuals. 

Full or half per diem payments 

You will receive full per diem benefits: 

• If you were in 100% employment. 

• If you were in a combination of work, school and benefits from the Directorate of Labour that were equivalent to 100% employment. 

You will receive half per diem 

• If you were a homemaker. 

• If you had less than 100% employment. 

Domestic help 

If you are only entitled to half per diem allowance, you can apply to be paid for domestic help. 

Receipted invoices must be submitted with the ID number of the recipient of the payment, working hours and the amount of wages paid.