Parental allowance for children with chronic or severe disabilities

If the parent is not employed or studying and:

• does not have the right to unemployment benefits, to sickness benefits or to sick leave

• will not receive parental leave payments with the child you apply for

• has completed the right to labour-market-related parental allowance

you can apply for basic payments.

Amounts

In 2024 the amount of the basic payments is:

• ISK 297,090 per month before tax.

Basic payments are taxable.

Child allowances

With basic allowances, child allowances are paid with each child in the household who is under the age of 18. They do not need to be applied for separately.

In 2024 the amount of child support payments is:

• 43.710 ISK per month with each child

If the single parent has 2 or more dependent children, special supplementary allowances are paid for those children:

• for two children is 12,655 ISK per month (1 January 2024)

• for three children is ISK 32,901 per month (1 January 2024)

Revenue plan

The amount of parental allowance is linked to your income. It is therefore important that your income plan is always correct. The maximum free income is ISK 102,380 per month for all income.

have no downward impact.

Application process

Supporting data

To apply for parental allowance you need:

• a medical certificate stating the diagnosis, treatment and care needs of the child,

• a statement from a professional, e.g. social worker if appropriate;

• to complete a plan for your future income (earnings plan),

• confirmation from the Directorate of Labour or the Maternity/Paternity Leave Fund, if applicable.

This is how you apply

Please note that you must register the date of application.

Conclusion

Once the result is available, you will receive an email and notification on My pages of TR under My documents.

You can also see the amounts for the year in the payment plan.

If you disagree with the decision, you can:

• requested justification on TR's My Pages,

• sent a message to TR's customer representative,

• or appeal the ruling to the Welfare Appeals Committee.

Payment arrangements

Parental allowances are paid out on the first day of each month. You will receive the amount in the bank account provided on My pages.

If payments are accepted retrospectively, the credit is paid out as soon as possible.

Rights ceases

Parents are not entitled to parental allowances if:

• the right to unemployment benefits is available

• sickness benefit from the employer or from a union sickness fund is available

• the parent is on parental leave or receives a child support grant for the same child as the child

• parent is a pensioner with TR