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Social insurance in Iceland

Social insurance is an integral part of social security in Iceland, providing a certain statutory minimum insurance coverage.

Social insurance in Iceland is financed by the State Treasury. Individuals do not pay special premiums for their social insurance; instead, employers pay premiums to the State Treasury on all paid wages.

The funds collected by these means are used, among other things, to finance social insurance.

Who is insured?
Everyone who has been legally resident in Iceland for a certain period of time automatically becomes a member of the Icelandic social insurance system, regardless of nationality.

However, certain conditions must be met to become entitled to benefits, for example regarding age, disability and time of residence. Income and family circumstances can also influence entitlement.

The Social Insurance Administration administers social insurance, including the payment of costs due to childbirth and child maintenance. The part of social insurance administered by the SIA is divided into three sections:

  • Pension insurance
  • Health insurance
  • Occupational injury insurance

In addition, the SIA administers social assistance from the State. The Department for Labour of the Ministry of Social Affairs is responsible for and administers unemployment insurance.

Family benefits (child allowance) are administered by the Directorate of Internal Revenue.

Residence in Iceland
Certain rules apply to the registration of legal residence in Iceland. Further information about the registration of legal residence can be obtained from the National Registry, Hagstofa Íslands.

http://www.tr.is/tungumal/enska/