Unemployment Benefits

Application and conditions

• Unemployment benefit can be applied for at the offices of the representatives of The Directorate of Labour (Vinnumálastofnun) situated all over the country - Unemployment benefit - online application form
• Applicants for unemployment benefit register at the same time for job searching.
• Unemployment benefit is paid monthly by The Directorate of Labour payment office

Recipients of unemployment benefit need to fulfil the following conditions:

1. Be active in seeking employment and ready to accept any jobs available.
2. Report once a month to the Directorate of Labour stating whether or not the seeking of employment has been successful.
3. Inform the Directorate of Labour when one has received employment and report all income.

• All applicants of unemployment benefit make a job seeking plan in conjunction with a counsellor who will also give them advice on job seeking and discuss options on offer to the unemployed.
• Failure to follow the job seeking plan or refusal to co-operate with the options offered can result in the loss of all benefits.
• Should applicants of unemployment benefit consider the Directorates´ handling of their application to be unsatisfactory, they can refer their claim to The Unemployment Benefit Insurance Funds ruling committee. The unemployment benefit fund ruling committee

The amount of compensation

• Basic benefit will be paid for the first ten days of unemployment, after which they will be salary indexed for three months should the conditions of salary indexed benefits be fulfilled.
• Those recipients of full unemployment benefit that are responsible for children under the age of eighteen receive an extra 4% of the basic payment for each child.
• Statutory pension fund dues must be paid on all unemployment benefits, and the Unemployment Insurance Fund will pay the corresponding percentage normally paid by the employer. The Directorate of Labour will pay union dues of unemployment benefit should they be so instructed. 

Further information can be found on the Directorate of Labour website

Those persons that have been unemployed for longer than six months and have received a discount card from TR (the State Social Security Institute) pay for health services according to the pensioners tariff until the end of the year. A certificate from the Directorate of Labour must be presented to TR.