Skip to main content

Application for medical and rehabilitation allowance

Medical and rehabilitation allowance is for people who are unable to work or study due to illness, accident or trauma.

An application for medical and rehabilitation allowance must always be completed, whether it is a first-time application or an application for continued allowance. See more about the application process and what documents need to be submitted before completing an application.

Conditions

The condition for receiving medical and rehabilitation allowance is that the health problem is long-term or serious, or that a disability is present which prevents participation in the labour market. The following conditions must also be met:

  • have had legal residence in Iceland for 12 consecutive months before the start of receiving medical and rehabilitation allowance, unless international agreements state otherwise,

  • have fully utilised sick leave rights from an employer and payments from a trade union's sickness fund,

  • you are in recognised treatment or rehabilitation for up to 12 months at a time,

  • you are waiting for treatment or rehabilitation to begin for up to six months at a time,

  • you are unable to undergo rehabilitation due to a health problem for up to six months at a time,

  • you are job-seeking after rehabilitation is completed for up to three months.

The total payment period for medical and rehabilitation allowance is 60 months, but it can be extended by another 24 months if you are in a vulnerable position, have complex problems and are in need of continued rehabilitation.

Application process and supporting documents

Recognised service providers

Recognised service providers are those who provide services in connection with rehabilitation or treatment. Healthcare professionals working for these service providers are authorised by law to prepare a rehabilitation plan or confirmation as appropriate.

Recognised service providers, along with the Social Insurance Administration (TR), are:

  • Municipal social services

  • The Directorate of Labour

  • Healthcare institutions

  • VIRK Vocational Rehabilitation Fund

Treatment or rehabilitation providers are parties that provide services in connection with rehabilitation on behalf of a service provider or TR and are as follows:

  • Krýsuvík

  • Þraut

  • Ljósið

  • Hæfi

  • Grænahlíð

  • Hlaðgerðarkot

  • Kjarkur

  • Hugarafl

  • Vocational Rehabilitation of South Iceland

  • Vocational Rehabilitation of West Iceland

  • Vocational Rehabilitation of North Iceland

  • Vocational Rehabilitation of the Westfjords

  • Vocational Rehabilitation of Hafnarfjörður

  • Hringsjá

Home supplement

The conditions for the home supplement remain the same in the new system.

The home supplement is income-related, and the combined amount of the pension and home supplement is reduced by approximately 45% of the pensioner's income exceeding the exemption limit, until it is fully withdrawn.

Child pension

Child pension payments remain the same in the new system. A child pension is paid if a parent or provider of support receives a disability pension, partial disability pension, or medical and rehabilitation allowance. The child pension is not taxable, and therefore other income does not affect these payments.