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Directorate of Labour Frontpage
Directorate of Labour Frontpage

Directorate of Labour

Temporary support for payment of wages due to natural disasters in Grindarvík town

28th November 2023

The Social Affairs Minister’s bill on temporary support for wages due to natural disasters in Grindavík was approved by the Icelandic parliament, Althingi, on 27 November.

The Directorate of Labour is responsible for implementing the law. The aim of the law is to protect the survival of people who are unable to perform their jobs due to natural disasters in Grindavík by ensuring that the pay to the person concerned is up to a certain maximum. At the same time, the aim is to maintain the employment relationship between employers and staff.

This law applies to temporary payments and is applicable from 11 November 2023 to 29 February 2024 in the following cases:

  • Employers in the general labour market who have paid employees who are unable to perform their work in a workplace in Grindavík due to natural disasters.

  • For employees who cannot perform their work at a workplace in Grindavík town and wage payments have been canceled.

  • For self-employed individuals who cannot perform their work in Grindavík.

  • Public employees and municipal employees are not covered by this measure.

The Directorate of Labour is working on the installation of an application and payment system for applicants where you can apply for support for payment of wages on My pages of the Directorate of Labour.

The plan is to start opening applications for employees whose pay has been cancelled and for self-employed individuals. It is expected that applications will be opened in early December.

Applications will be opened to employers in mid-December. An announcement will be made on the website of the Directorate of Labor when applications are opened.