Please note that you need to have an electronic ID to be able to apply for unemployment benefits.
Unemployment benefits application
When to apply?
It is good to apply immediately.
Individuals can apply 30 days before they become unemployed. It is important to apply no later than the day you become unemployed, that is, when the notice period ends. You can always cancel the application.
Why apply early?
Unemployment benefits are paid from the date of application, not from the date of approval of the application.
Unemployment benefits are not paid retroactively.
It takes 4-6 weeks to process an application. If supporting documents are missing, the processing time may be extended.
Application status
When a decision is reached, a notification is sent to the applicant's e-mail address. If no such notification has been received, the application is still being processed.
It may be helpful to check the following before applying:
Is my legal domicile securely registered in Iceland? Registration of legal domicile can be changed at Registers Iceland.
How do I want to use my personal tax credit? For information, see here at Skatturinn, Iceland Revenue and Customs.
Am I sure about when I graduated from school?
Do I have leave from my last job? When an employee leaves a job, the employer pays out the earned holiday pay. This pay can affect the payment of unemployment benefits.
What kind of driving rights do I have?
Am I receiving payments from a pension fund? They can affect the payment of unemployment benefits.
Supporting documents
When applying for unemployment benefits, supporting documents must usually be submitted with the application.
The Directorate of Labour requests missing documents if they have not been received with the application. The documents can be submitted on My pages.
While documents are missing, the processing of the application is postponed. After all necessary documents have been received, processing takes about 1-2 weeks.
Examples of supporting documents
Last pay slip, to see the settlement for paid leave.
Confirmation of employment period from the employer (in Icelandic). Trade unions can help if it is difficult to get a confirmation from the employer.
Certificate of work capacity from a doctor, if the applicant received sick leave allowance in the last 12 months. This applies when the reason for unemployment is illness or reduced work capacity.
Confirmation from the school, if the applicant is studying or completing studies. The study period and the number of credits must be stated there.
Confirm job search
Applicants have to confirm job search on My Pages even if the application is still being processed.
Once your application has been approved, it is important to check for messages on My pages. These can be invitations to a mandatory presentation meeting or a course.
Confirm job search
All who receive unemployment benefits must confirm a job search once a month, between 20th and 25th of each month. Otherwise, the payment of unemployment benefits will be delayed.
This is done by clicking on the orange banner that appears at the top of My pages. It is necessary to confirm the job search even though the application is still being processed and also even though payments are being delayed because of violations of regulations.
If the job search is confirmed between the 25th and 3rd of the following month, the payment is made 5 working days after the end of the month.
If the job search is confirmed after the 3rd of the following month, the payment is made by the next month.
If documents are missing an applicant gets notified on My Pages.
The reason for refusal may be that necessary documents have not been submitted.
You do not need to re-apply, it is enough to return the requested documents through My pages.
If an individual is not satisfied with the decision of the Directorate of Labour, the decision can be forwarded to the Welfare Appeals Committee.
Right to unemployment benefits
To qualify for unemployment benefits, the applicant must have worked in Iceland, be between the ages of 18 and 70, be able to work in a general workplace, have legal residence in Iceland and be in the country.
You must confirm job search on My pages to receive unemployment benefits. This also applies to the first payment and the application period, when an application is still being processed.
Unemployment benefits are paid on the last working day of the month after the application is approved.
The first two weeks, basic unemployment benefits are paid. Then the income-linked benefits take over for the next three months, for those who are entitled to it.
Possible reasons:
Job search has not been confirmed
Job searches must be confirmed on My Pages between the 20th and 25th of each month. It can be confirmed until the 3rd of the following month if it is forgotten during the confirmation period.
Application is still being processed
It may be that the application has not been processed yet. Processing can take 4-6 weeks after all data has been received.
If data is missing, it is requested. If the data is not received before the 20th of each month, it cannot be guaranteed that payment will be made at the end of the following month.
Are there messages on My Pages?
If data or information is requested so that the processing of the application can be completed, the applicant will receive a notification on My pages. It is recommended to log in there daily.
Possible reasons:
Vacation
Vacation days you have gained from the last employer must be allocated. Information about vacation pay should be on the last payslip from the employer. It is not possible to receive paid vacation days and unemployment benefits at the same time.
Leave is allocated at the beginning of the period of unemployment benefits unless a person wishes to take the leave at a different time. You can change your leave once by sending an email to: greidslustofa@vmst.is.
The holiday period is from May 1 - September 15 every year. Vacation days that a person has earned before May 1 each year must be used in the next vacation period that begins on May 1.
Income connection
Income-linked benefits do not start in the first two weeks. Basic unemployment benefits are paid for that period.
Self employed
The right to benefits is lower if a self-employed person's payments of the insurance premium and the withholding of calculated remuneration are lower than the criteria of Skatturinn.
Future payments
You must confirm a job search every month on My pages to receive benefits.
Payment is made on the last working day of the month.
Payment is made afterwards for the month that has passed.
While an individual receives unemployment benefits, income, extra work and other changes must be reported. Otherwise, excessive benefits may need to be repaid or payments may be delayed.
August
2. Corrections
6. Second Confirmations
12. Corrections
15. Corrections
30. Payment
September
2. Corrections
4. Second Confirmations
11. Corrections
16. Corrections
30. Payment
October
02.10.24 Corrections
04.10.24 Second confirmations
09.10.24 Corrections
16.10.24 Corrections
31.10.24 Payment
November
04.11.24 Corrections
06.11.24 Second confirmations
12.11.24 Corrections
15.11.24 Corrections
29.11.24 Payment
December
02. Corrections
04. Second Confirmations
12. Corrections
18. Corrections
30. Payment
Period of benefits
You can receive unemployment benefits for 30 months. After that, you must earn a new 30-month period.
