Full payments and free income limit from 1 September will be as follows - see here.

The effect on income is 45% after the threshold for income is reached. Note that according to the new system the payment categories disability pension, age supplement and household supplement are added together, if applicable, and then 45% of income above the threshold for income is deducted from that amount. Therefore, one sum appears in the payment plan.

Example:

A person with full pension rights who received his or her first disability or rehabilitation assessment at the age of 36 and is entitled to a household allowance.

His income is ISK 200,000 per month.

His payment rights in the new system are:

You can see in the example above that the income is ISK 200,000 and the free income limit is ISK 100,000, so the reference income above the free income limit is ISK 100,000. (200,000 - 100,000 = 100,000) out of ISK 100,000 is calculated as a 45% reduction, which amounts to ISK 45,000. The total payment for the reduction is ISK 474,565. Out of this, ISK 45,000 is deducted, so the payment for disability pension, age supplement and home allowance is ISK 429,565. The effect of income is 45% on the total amount of disability pension, age supplement and home allowance if applicable, so the payment option is shown in one number.