Social Insurance Administration
Social insurance allowances to follow the wage index from 1 January 2027
20th March 2026
New legislation was passed in Althingi yesterday which entails new criteria for determining annual increases in social insurance.
The annual wage and price indexation of pension allowances, which will next be implemented on 1 January 2027, will be based on the new legislation.
The change means that social insurance allowances are to be based on the development of the wage index calculated and published by Statistics Iceland, instead of being based on a forecast of wage developments.
See the news on the Government of Iceland website, here.