Partial disability and activity grant from September 1. 2025

In short

Part-time disability pension is for those who are assessed with 26 to 50% ability to be active in the labour market according to the criteria.

Part-time disability pension is intended for those who have the ability and the ability to be on the labour market, but the maximum salary income is250.000 ISK per month.

It is permanent, but if circumstances change, a reassessment can be requested.

For whom

Persons who are assessed with 26 - 50% ability to be active in the labour market according to integrated expert assessment due to long-term or serious health or disability. Part-time disability pension is intended for those who have the ability to be part-time on the labour market.

Amount of partial invalidity pension

The amount of the partial disability pension is 82% of the full disability pension payments at any given time. The income limit is general, but it is supplemented by the income limit for employment income per month.

A person with a partial disability pension can therefore earn up to a maximum of one month's income without affecting payments from the Social Insurance Administration. The effect of income is a 45% reduction in income above the free income limit.

Age add-on

Those who are entitled to disability or partial disability pension can receive an age supplement, subject to certain conditions.

A full supplement of an age of 18 to 24 is paid to those who are 18 to 24 years old when either the criteria for a rehabilitation pension were first met or when the disability assessment was first approved. This applies whether the first disability assessment took place before or after 1 September 2025. The amount is reduced by 5% from the age of 25 to 44 and is not paid to those who are over 43 years old at the time of the first disability assessment.

Example: If a person receives an approved rating for the first time at the age of 25, the person receives 95% of the full age supplement and keeps that payment.

Example: If a person receives an approved assessment for the first time at the age of 43, the person concerned receives 5% of the full age supplement and keeps that payment.

The age supplement is income-related and reduces the total amount of pension, home allowance and, if applicable, age supplement by 45% of the pensioner's income above the free-income limit, until it is eliminated.

Part-time disability pension and activation allowance

Those who are entitled to a partial disability pension can receive an activity grant from the Directorate of Labour for up to 24 months while an individual is actively seeking employment with the assistance of the Directorate of Labour. The combined amount of the partial disability pension and the activation grant amounts to the total amount of the full disability pension.

Activity grant

Those who are entitled to a partial disability pension can receive an activity grant from the Directorate of Labour for up to 24 months while actively seeking employment with the assistance of the Directorate of Labour. The combined amount of the partial disability pension and the activity grant is equal to the amount of a full disability pension. Applications for an activity grant are submitted to the Directorate of Labour. It is not income-related.

Home supplement

Home supplement payments are the same in the new system.

The home supplement is income-related and reduces the total amount of pension, home supplement and, if applicable, an age supplement by 45% of the pensioner's income above the free-income limit, until it is eliminated.

Child pension

Child pension is the same in the new system. Child pension is paid if the parent or the dependant receives disability pension, partly disability pension or sickness and rehabilitation payments. Child pension payments are non-revenue related.