An individual may be entitled to unemployment benefits for up to 24 months from 1 July 2026. However, individuals who applied for unemployment benefits before that date remain entitled to a benefit period of up to 30 months. This is referred to as the individual's benefit period. If an individual applies for unemployment benefits again, they may re-enter the same benefit period.
Benefit period
The benefit period is not extended, even if:
an applicant has to wait for the first payment of benefits,
payments are suspended,
benefits are paid in a percentage less than 100 %,
an individual goes through a short illness. Other rules apply if a person becomes unable to work due to illness or an accident.
Re-applying
Individuals apply for unemployment benefits through My Pages on the Directorate of Labour's website, in the same way as when applying for the first time.
Returning to the same benefit period
Please note that if an individual applies for unemployment benefits and has previously been registered as unemployed, the same benefit period may still apply. In such cases, the individual is entitled to unemployment benefits for the remaining months of that benefit period. Income-related benefits are paid only once during each benefit period.
How can I see the status of my benefit period?
On My Pages, under My Application, you can view the remaining months of your benefit entitlement. The status of your benefit period is also shown at the bottom of your payslip.
Right to a new benefit period
An individual may be entitled to a new benefit period if the following conditions are met:
Previous benefit period completed
An individual who reapplies for unemployment benefits, has previously been registered as unemployed, and has not finished their previous benefit period must meet the following conditions:
24 months must have passed since the last benefit payment.
The applicant must have worked in the Icelandic labour market for at least 6 months since unemployment benefits were last paid. The employment ratio must have been at least 25%.
A person who completes their benefit entitlement but then works for a minimum of 6 months in the last 2 years thereafter has earned a new benefit period.
Previous benefit period not completed
An individual who reapplies for unemployment benefits, has previously been registered as unemployed, and has not finished their previous benefit period must meet the following conditions:
24 months must have passed since the last benefit payment.
The applicant must have worked in the Icelandic labour market for at least 24 months since unemployment benefits were last paid. The employment ratio must have been at least 25%.
A period during which an individual is employed and deregistered from the unemployment register does not count as part of the benefit period.
Example: An individual who received unemployment benefits for one year and then worked continuously for two years will have earned a new benefit period.
Request a statement of reasons
It is possible to request an explanation of the calculation of benefit entitlement. That is done by sending a message through My pages.
Recalculation
An individual who has received unemployment benefits and later returns to the same benefit period may request a recalculation. In such cases, the new period of employment and the portion of the previous period required to make up a total reference period of twelve months will be used in the calculation.
Conditions
The individual must have worked continuously for more than three months before reapplying within the same benefit period.
Service provider
Directorate of Labour