Refunds for Overpaid Benefits from the Directorate of Labor
The District Commissioner of Northwest Iceland handles the collection of overpaid unemployment and maternity leave benefits on behalf of the Directorate of Labor. The principal amount of overpayments is collected along with a 15% surcharge.
Collection Process
When a claim is created, it appears in the debtor's online bank. Collection letters are sent to the debtor’s inbox on island.is.
If the claim is not paid within 30 days after the collection letter has been sent, and no agreement is made, a payment request is issued by a process server.
The following remedies are available to enforce payment:
Offsetting against state credits
Registration on the credit default register
Asset seizure
Forced sale of assets
Payment Installments
Requests for payment installments must be submitted in writing to innheimta@syslumenn.is or by letter to the office of the District Commissioner of Northwest Iceland. The minimum monthly payment for installment agreements is ISK 10,000.
Claims can be paid into bank account 0159-26-267, ID number 660914-0990. The debtor’s ID number and name must be included with the payment.
Payments can also be made by credit card.
Appeal Routes
A party may request an explanation, review, or appeal the decision to the Welfare Appeals Committee within three months from the date of the Directorate’s letter. More information about appeal routes can be found with the Welfare Appeals Committee.
Filing an administrative complaint does not suspend the legal effect of the decision but postpones enforcement. If the decision has been appealed, confirmation must be sent to the District Commissioner at innheimta@syslumenn.is.
Decisions regarding claims by the Directorate of Labor can be found on the Directorate’s website.
Service provider
District Commissioner of North West Iceland