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Residence allowance

A person who has to move to take up a job may be entitled to a residence grant. The grant shall cover the costs of moving to a new place of residence.

General

The grant is intended for those who are insured in the unemployment insurance scheme, that is, who are entitled to unemployment benefits.

The aim of the grant is to facilitate jobseekers and their families moving between regions of the country to take up the job they are offered. The cost of moving within the capital area is not covered by the residence grants.

Conditions

  • The applicant has been employed in a municipality other than the one in which he has registered his legal domicile and has difficulty in applying for the job from his legal domicile.

  • The individual registers his/her legal domicile in another municipality.

  • The job is not temporary.

  • The applicant does not find it easy to get a job in the municipality where he has registered his legal domicile, according to the consultants of the Directorate of Labour.

  • The person concerned has not received a pension in the same period

Cost of transport

When applying, the person must show that he/she has already paid the costs of transportation.

Examples of transportation costs are:

  • Renting a large car for transportation,

  • the services provided by the carrier, whether the transport is carried out on land, by sea or by air;

  • the cost of commuting for himself and his family, who have registered legal domicile in the same place as the jobseeker, by public transport, whether by land, sea or air.

Amount

The amount of the residence grant shall not exceed 80 % of the cost of the transfer. The amount of the grant may not exceed the maximum amount of the income-related unemployment benefit.

Required supporting documents for an application

  1. Confirmation of a jobseeker's transfer from a municipality or a copy of a transfer notice to Registers Iceland

  2. Written confirmation by the employer of permanent employment

  3. Accounts or receipts for the payment of expenditure incurred in the transportation of the residence

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