Unemployment benefits

1. Studies are 12 credits or less

Individuals who study a maximum of 12 credits at secondary school or university can be entitled to unemployment benefits. The student may not be eligible for a student loan at the Icelandic student loan fund. You can study in day school, evening school, or through distance learning.

• A confirmation of the extent of your studies must be submitted on My pages and an application for a study contract must be submitted.

2. Studies are more than 12 units per semester

You may not study beyond 12 units at the upper secondary school level or university level, alongside unemployment benefits. Special reasons must be present and the Directorate of Labour must approve the permission to study in advance.

The maximum amount of such authorisation is 20 units of study along with the payment of unemployment benefits. The study may not be creditable for maintenance by the Student Loan Fund.

• A confirmation of the extent of your studies must be submitted on My pages and an application for a study contract must be submitted.

Reduction of benefits for studying

If a course of study is approved with more than 12 units, unemployment benefits are reduced in proportion to the size of the course.

• 13 units - unemployment benefits reduced by 43%

• 14 units - benefits reduced by 47%

• 15 units - benefits reduced by 50%

• 16 units - benefits reduced by 53%

• 17 units - benefits reduced by 56 %

• 18 units - benefits reduced by 60%

• 19 units - benefits reduced by 63%

• 20 units - benefits reduced by 66%

3. Semester has already begun

If you apply for unemployment benefits after your studies commence, i.e., your employment is terminated of which you study alongside, you can complete the semester that has begun without it impacting your rights to unemployment benefits.

• A confirmation of the extent of your studies must be submitted on My pages and an application for a study contract must be submitted.

4. Study defined as study with work

If studies at the upper secondary school level or university level are defined as studies with work by the school itself, they may be pursued while unemployment benefits are paid without the right to benefits being affected. The student may not be eligible for a student loan at the Icelandic student loan fund.

• A confirmation of the extent of your studies must be submitted on My pages and an application for a study contract must be submitted.

5. Certified study programs at further education providers

You are permitted to pursue studies that are available within further education providers, i.e., primary and lower secondary education, educational institutions and other certified study programs without impacting your right to unemployment benefits.

• A confirmation regarding the scope of the studies must be submitted on My pages

  and apply for a study contract regarding the studies.

The employment of a student may be taken into account when calculating unemployment benefits, but then the study programme does not count as a work contribution. This authorisation may only increase the right of employees to unemployment benefits once in each 30 month period of benefits.

When an applicant stops studying and applies for unemployment benefits, it matters how the studies were completed. If studies are stopped without valid reasons or credits are reduced to qualify for a study contract, may be subjected to a suspension period for unemployment benefits at the beginning of the benefit period if

Submitting a written explanation regarding the termination of employment/studies alongside the application for unemployment benefits will decrease the processing time of the application. If a written explanation is not submitted, the processing of the application will be postponed, and the applicant will be provided with an opportunity to submit an explanation / objection regarding possible decisions made by The Directorate of Labour. Applicants who are subjected to a benefit suspension period at the beginning of the benefit period are not entitled to income-related unemployment benefits.

The processing of an application can be sped up by submitting an explanation of your study completion through My pages by clicking on the "Send data" button and selecting "Explanatory Letter" as the type of document. If such a letter is not sent, the processing of the application is delayed.