The new system is based on simplification and increased efficiency, with the aim of improving the financial situation of individuals receiving disability and rehabilitation pensions. The new system emphasizes the active participation of individuals, a holistic approach to services, and increased support.

The aim of the changes is to simplify and increase transparency in the disability pension system, improve the financial situation of individuals receiving allowances, reduce income-linking, increase incentives for employment participation, and provide stronger support for rehabilitation, as well as preventing premature disability.

New allowance system

A new allowance system and new allowance categories will be introduced, such as a partial disability pension amounting to 82% of a full disability pension, an activity grant, and a new medical- and rehabilitation allowance, in addition to a disability pension which will be in a modified, permanent format. Allowances in most categories will increase, and exemption limits for the partial disability pension will be higher than ever before. The Social Insurance Administration is the paying authority for the disability pension, partial disability pension, and new medical- and rehabilitation allowance, and it assesses applications for disability, partial disability, and rehabilitation allowances.

Integrated expert assessment

An integrated expert assessment will be implemented in the new system, which is based on the international classification system ICF, designed and maintained by the World Health Organization. The assessment takes a holistic view of the individual's abilities, health, and circumstances and is carried out in collaboration with specialists, rehabilitation providers, and the applicant. The integrated expert assessment will be a prerequisite for the new disability pension and partial disability pension.

Activity grant

The activity grant is a new resource provided alongside the partial disability pension, paid by the Directorate of Labor, and amounts to 18% of a full disability pension. It is granted to those who are actively seeking employment with the assistance of the Directorate of Labor, and the allowance can last for up to 24 months.

A modern system

Preparations for the new system have been underway for over a year in good cooperation between the Ministry of Social Affairs and Housing, the Social Insurance Administration, the Directorate of Labor, VIRK, and the Primary Health Care of the Capital Area. Together, these entities, along with municipal social services, form a nationwide service unit with new coordination teams and a service portal.

The effects of the new system on individuals are manifold, such as simplified allowance categories, higher exemption limits, integrated assessment, and increased support and counseling, which promotes greater activity and a better financial situation.

The changes are a major step towards a more modern disability and rehabilitation system that is in line with societal changes in recent years. The emphasis is on active participation, individualized assessment, and increased support from professionals. The goal is to ensure that every individual receives appropriate services and opportunities to utilize their abilities.

It is our great pleasure to contribute to making this extensive system change as successful as possible and to deliver improvements to those who need our services.

Huld Magnúsdóttir, Director of TR

Sigríður Dóra Magnúsdóttir, Director of the Primary Health Care of the Capital Area

Unnur Sverrisdóttir, Director of the Directorate of Labor

Vigdís Jónsdóttir, Director of VIRK – Vocational Rehabilitation Fund