The Social Assistance Act No 118/1993

Social Assistance Benefits comprise motherhood and fatherhood allowance, child pension with respect to the education or vocational training of youths aged 18-20, home care benefits, rehabilitation pension, spouse's benefits, widows' and widowers' benefits,, household supplement, supplements arising from special circumstances, supplement for the operating costs of an automobile, grants for the purchase of an automobile, and reimbursement for substantial expenses on medical assistance and medicine.
Social Assistance benefits shall be paid only to persons legally residing in Iceland under Article 1 of the Act on Legal Residence subject to other conditions set out in this Act and in regulations based on the said Act. Benefits may be indexed to income other than housing benefits, as applicable.
The Pension Insurance Department of the SSI is charged with the payment of Social Assistance Benefits under this Act, subject to the provisions of Article 12.
The cost of Social Assistance Benefits shall be paid out of the State Treasury subject to the provisions of the State Budget Act and the State Supplementary Budget Act at any given time.


A motherhood and fatherhood allowance may be paid to single parents who maintain their children under 18 years of age and are resident in Iceland. The Minister shall in a regulation provide in further detail for the payment of motherhood and fatherhood allowance. The said regulation may also stipulate that payment of motherhood and fatherhood allowance shall be attached to the condition that a maintenance decree has been issued or a certified agreement concluded regarding the payment of child maintenance.
The annual motherhood and fatherhood allowance shall be as follows:
For two children ISK 37,728
For three or more children ISK 98,088
The SSB may pay a motherhood or fatherhood allowance to the spouse of an old age or invalidity pensioner when social security benefits are discontinued due to institutionalisation. In accordance to rules established by the SSB, a motherhood or fatherhood allowance may be paid to the spouse of an individual who has been detained in custody or imprisoned, provided the custody or imprisonment has lasted for no less than three months.
Motherhood and fatherhood allowance shall lapse one year after the recipient of the allowance registers in the national register in unwed cohabitation with a person other than the parent of the child or children, cf. Article 44 of the Social Security Act. If the recipient of the benefits registers in unwed cohabitation with the parent of the child or children or former cohabitant or enters into marriage the allowance shall lapse immediately.


The Pension Department of the SSI may pay a child pension to a youth aged 18 to 20 who is engaged in studies or vocational training if either or both parents are deceased and moreover if one or both parents are old age or invalidity pensioners. Only a single child pension may be paid under this Paragraph. The Pension Department evaluates the proof of studies or vocational training. It is a precondition that the studies or vocational training take place for at least six months each year. If the studies or courses are irregular, the time of study shall be calculated in class hours per calendar year with 624 class hours corresponding to six months of study. A part-month shall be calculated as a whole month. The child shall himself/herself apply for the child pension under this Paragraph. The Pension Department may postpone payment until the six months of studies are completed. If a decision under Paragraph 1, Article 13 of the Children's Act cannot be applied due to the impecuniousness of the parent or because the parent cannot be located a child pension may be paid to a youth who is demonstrably pursuing studies in accordance with this Paragraph pursuant to rules drawn up by the SSB. The SSI may require the submission of a tax return along with applications for child pension. In accordance to rules established by the SSB a child pension may be paid to a youth who is demonstrably pursuing studies if it is clear that the youth cannot collect payments in accordance with a decree issued on the basis of the Children's Act, Paragraph 1, Article 13. Under rules on entitlement to child pension established by the SSB in accordance to the aforesaid it is permissible to take into account the child's financial means and any other sources of income that the child may have.


The SSI may pay home-care benefits to persons responsible for the maintenance of disabled or chronically sick children staying at home or hospitalised, up to the amount of ISK 53,840 per month and/or take increased part in the payment of medical expenses if the mental or physical impairment of the child calls for considerable expenses and special care or minding. Home-care benefits may be paid to persons responsible for the maintenance of children suffering from serious developmental deficiencies comparable to disability and children with serious behavioural problems comparable to mental illnesses. In special circumstances home-care benefits may be raised by up to 25% pursuant to rules issued by the SSB.
General kindergarten and school services do not reduce the home-care benefits. Other daily specialised services and care outside the home, including substantial temporary accommodation, shall reduce the home-care benefits. Medical officers shall assess to what extent a need exists under this provision.
Implementation of this provision shall proceed in accordance with regulation issued by the Minister of Health and Social Security on the basis of recommendations from the SSB.


In special circumstances the spouse of an old age or invalidity pensioner may be granted a spouse's benefit in the amount of up to 80% of a single person's social security basic pension and income supplement.


A person who is widowed before reaching the age of 67 may be paid a grant in the amount of ISK 15,448 per month for six months following the spouse's death.
If a recipient maintains a child under 18 years of age or in other special circumstances, he/she may be paid a grant for a further period of at least twelve months but no more than 48 months at the rate of ISK 12,139 per month.



When the extent of disability following sickness or accidents cannot be determined, a rehabilitation pension may be paid for a period up to twelve months after payments of per diem sickness or occupational injury benefits under the Social Security Act have ceased or until the degree of permanent disability can be assessed, however, in no case shall the period exceed 18 months. This is subject to the condition that the patient undergo diagnosis or treatment at a medical institution or outside such an institution subject to rules issued by the SSB and approved by the Minister. The rehabilitation pension shall be equal in amount to the basic invalidity pension along with income supplement. Other related benefits are subject to the same rules as old age and invalidity pensions. Hospitalisation for the purpose of diagnosis or rehabilitation shall not reduce benefit payments.


A single person who receives a full income supplement under the Social Security Act and who runs his household alone without the economy of living with others or sharing housing or cost of board may be granted a household supplement in the amount of ISK 7,711 per month. Should the single person be entitled to an income supplement at a reduced rate under the Social Security Act, the household supplement shall be reduced in accordance with the same rules.


A further supplement may be paid to old age and invalidity pensioners if it is clear that the pensioner cannot support himself without it.


An old-age or invalidity pensioner, recipient of an invalidity allowance or home-care payments may be granted a supplement to purchase a motor vehicle which is necessary for the pensioner due to ambulatory incapacity provided the pensioner clearly cannot do without the supplement.
The same applies to the operation costs of a motor vehicle in the case of recipients of old age or invalidity pensions and invalidity allowance.


If the expenses of an insured person due to medical assistance or medicinal costs are substantial the SSI may reimburse the insured party for the expenses in part or in full subject to income and in accordance with rules issued by the Ministry of Health and Social Security.
The Health Insurance Department is responsible for reimbursement under this Article.

Social Assistance is governed by the provisions of the Social Security Act, as applicable, i.a. with respect to the right of appeal to the Social Security Ruling Committee and increase of benefits.
The Minister of Health and Social Security may issue further provisions regarding payment of Social Assistance under this Act through regulation.

This Act shall take effect on 1 January 1994.


Women receiving widows' pensions 31 December 1995 shall receive widows' pensions up to 67 years of age provided they met conditions for payments of widows' pensions 1 January 1996. Payments of widows' pensions to this group shall be in accordance with regulations on widows' pensions in force before 1 January 1996.