Medical and rehabilitation allowance

To be entitled to sickness and rehabilitation benefits, you must meet certain residency requirements according to the Social Security Act:

• The general rule. The applicant must have had a registered legal domicile in Iceland for at least 12 consecutive months before their entitlement to benefits is assessed.

• The aggregation rule. It is permitted to aggregate periods of residence in Iceland and in other EEA countries. This means that periods of residence in other EEA countries, the Faroe Islands, Greenland, Switzerland, the United Kingdom, and Canada are added to the period of residence in Iceland to meet the 12-month residency requirement.

  • To be considered as meeting the residency requirement under the aggregation rule, the applicant must have resided in Iceland for a minimum of one year after the age of 16.

  • The United States also falls under the aggregation rule, but with a special additional condition; the applicant must have worked in Iceland for a total of at least 12 months after the age of 16.