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Health insurance in Iceland
Healthcare in Iceland is subsidised, and all residents are automatically covered by the Icelandic Health Insurance. That means that all individuals legally residing in Iceland for 6 months or more are automatically covered.
Temporary workers from another EU country should have the European Health insurance card and should because of that be provided healthcare during their temporary stay. This service should be with the same conditions and cost as the residents in Iceland.
Migrant individuals that are originally citizens of a country within the EEA must register to the system. Once you have your legal residence in Iceland the system will take effect, before this the health insurances in the country of origin should cover your health expenses in Iceland. Excepted from this procedure are individuals moving to Iceland from a Nordic country who can apply for health insurance the day they apply for legal residence in Iceland. All individuals that are sent to Iceland for work, must either be a citizen or have residency and work permit in an EU country. Posted workers should in all cases have health insurance and be able to apply for an A1 certificate.
More information on health insurance can be found on the site of Icelandic Health Insurance
More information on specific certificates or permits can be found on the site of Directorate of Labour and The Directorate of Immigration in Iceland:
When are you included into the national health incurrence system?
Once individuals have registered to the system, the maximum payments per month is 27.756 ISK or 18.317 ISK for retirees and children.
Once the maximum payment is paid for one month, they do not have to pay more for healthcare and doctors that month.
Exempt from this are pregnant women who do not pay for maternity healthcare during their pregnancy.The only exception is the 12-week ultrasound that is optional.
Admission fees for health care are free of charge for 18 years and younger, the elderly, the disabled and maternity care.
For prescription medications, the maximum amount per month is 22.000 ISK or 14.500 ISK for children and retirees.
For more information on the Icelandic Health Insurance System
They also provide further information through their service phone.
What falls under national health insurance in (partner country)
Most forms of health care services are subsidized or covered by the national health insurance.
For example, Physiotherapy is subsidized by the national health insurance and the services of psychiatrists.
However dental care is not fully covered but is free of charge for children under 18 years of age, and pensioners pay 50% and psychological services are not covered by the health care system, unless individuals use the psychologist in the health care centres.
Private health incurrence and migrant workers.
For temporary workers from outside the EU health insurance is one of the primary conditions for issuing a residence permit for individuals who move to Iceland and are citizens outside the EU area. As temporary workers from outside the EEA do not have public health coverage, they must apply for coverage from private insurance companies.
Here below you can see a list of insurance companies in Iceland, but there are also some foreign companies that are accepted in Iceland:
Cash Sickness benefits and The Trade Unions Sickness Fund
If individuals are unable to work due to sickness or injury outside their workplace, they may be entitled to cash sickness benefits.
Cash sickness benefit is a set amount that can be paid at the 15th day of sickness, or when the individuals have finished their sick leave days earned during their employment.
To be entitled to the cash sickness benefits, individuals have to meet a certain criteria.
- They must have health insurance in Iceland.
- They must have been unable to work for at least 21 consecutive days.
- They must have been working or studying in Iceland in the months before they became unable to work.
- They must no longer receive any payments from their workplace, including sick leave payments.
- They must not benefit from a full disability pension, rehabilitation pension, retirement pension, maternity/paternity leave payments or unemployment benefits.
- They must be at least 16 years of age.
The full amount of the monetary sick benefits in 2020 are 1.873 ISK per day with additional 514 ISK per day for each child at home. If your work percentage was less than 100% you will receive half payments.
The trade unions sickness fund has the role to pay compensations to the union member in the event of illness and accidents after the end of salary payments. All employers are obligated to pay at least 1% of wages to the health fund unless a higher percentage has been agreed upon in the collective agreements.
The daily allowance for sickness or accidents is paid for 120 days (4 months), should not be more than 80% of the average of the wages that have been paid as union fees in the last 6 months. Individuals can also apply for payments from the sickness fund up to 90 days (3 months) in case of sickness of children under 18 or spouse.
Once individuals have finished their sick leave days, then they can apply for sickness benefits from The Icelandic Health Insurance (SÍ) and from the Trade Unions Sickness Fund, it is possible to receive payments from SÍ and the Unions at the same time.
More information on the union sickness fund can be found on the website of the trade unions.
Unemployment benefits, what and where to go.
Unemployment benefits are divided into two phases: basic and income related. Basic unemployment benefits are paid for the first 10 working days of unemployment, income-related unemployment benefits then take up to three months, after which basic unemployment benefits are paid again.
Qualification
- Being unemployed.
- Being domiciled in Iceland and being in the country.
- Actively seeking employment.
- Being fit for work.
- Prepare to take any job.
The benefits amount – Basic unemployment benefits (1 January 2021:
- 307.430 ISK per month (100% entitlement)
- 230.572 ISK per month (75% entitlement)
- 153.715 ISK per month (50% entitlement)
- 76.857 ISK per month (25% entitlement – minimum entitlement).
18.445 ISK is paid for each child under the age of 18 for whom the individual is responsible for.
The maximum of income-related unemployment benefits is 473.835 ISK per month on income related benefits.
For more information and to apply for unemployment benefits go to the site of The Directorate of Labour.
It is important for migrant workers who do not have a permanent ID number (kennitala) to contact The Directorate of Labour services specially before applying, as there have been problems relating to that in the past.
Is there any Social/Financial assistance?
Social and financial assistance in Iceland comes mainly from the municipalities, where it depends on where you live in the country.
All individuals have access to social workers through the municipalities that can help them with financial and social assistance.
Financial assistance
In situations where individuals need financial assistance, they can seek support from their municipalities. According to Icelandic law financial help should always be made to prevent families or individuals from ending up in situations where they cannot manage their own affairs.
Access to financial assistance can differ depending on the municipalities that the individual is living, but for example you can apply for it on Reykjavík city website.
Housing Benefits
The Housing and Construction Authorities handle the implementation of housing benefits. Housing benefits are monthly payments intended to assist those who rent residential premises.
The conditions for housing benefits
- Applicants and household members must be resident in the residential premises and must be domiciled there.
- Must have reached the age of 18.
- The residence must include at least one-bedroom, private cooking facilities, private toilet, and bathroom facility.
- Must be a party to a registered lease valid for at least three months.
- Must grant access for gathering of information.
Social housing
Individuals or families that are in urgent need of housing and cannot provide or find housing for themselves can apply for social housing through their municipalities.
For more information on social housing visit.
More information on social assistance
Please visit the site or contact the service centre of your municipality.
Can foreigners apply for financial assistance?
- Foreigners who are residents in Iceland should have the same rights to social services as everyone in Iceland.
For more information on financial support: