Sickness per diem payments

The VR Sick Pay Fund provides sickness per diem payments after the expiration of wage income in the case of a VR member becoming unable to work due to sickness or accidents (with the exception of accidents due to motorized vehicles).

Per diem payments are provided from the time of expiration of contractual or statutory wage payments by the employer. Maximum payments are 210 days (or 7 months).

If a member has e.g. worked for one year by the same employer he/she has a two months’ sickness right. When a member has made full use of his/her sickness rights and the sickness persists for longer, the member can turn to VR and apply for payments from the Sick Pay Fund.

Attachments:

• Sickness benefit certificate issued in Iceland.
• Employer confirmation of when the sickness benefit entitlement ends.
• Copy of the most recent payslip.

Amount of sickness payments

• Sickness per diem payments are 80% of average wages, provided that no payments are being received due to temporary disability according to reliability insurance for the same period.
• Sickness per diem payments are based on average wages of the beneficiary, based on payments to the VR Union- and Sick Pay Funds for the last 6 months prior to the expiry of the wage payments. The average wages of those who have paid for less than 6 months to the VR Sick Pay Fund are calculated in the following way:
• He/she who has acquired the right to sickness per diem payments from a sick pay fund of another union within ASÍ gains a right to the VR Sick Pay Fund after having paid to the VR Union- and Sick Pay Fund for one month, provided he/she has had a right to the prior fund. Average wages of the respective individual must be based on the number of months that he/she has paid to the VR Sick Pay Fund.
• Average wages of those who do not have a right to a sick pay fund of a different union and have not paid the equivalent of a minimum fee to the VR Union- and Sick Pay Fund must be found by dividing into the wages of the reference period by 6 months, even if payments have been made for less than 6 months.

Applications are submitted through My Pages and must include a sickness benefit medical certificate, employer confirmation of when the sickness benefit entitlement ends, and a copy of the most recent payslip. Information on the use of the personal tax credit is also required. The right to sickness per diem payments expires after 24 months.

Per diem payments due to a serious sickness of a spouse

Per diem payments due to a serious sickness of a spouse are paid for up to 90 days (80% of wages). Per diem payments can be applied for by filling in an application for sickness per diem payments.

Applications are submitted through My Pages and must include a sickness benefit medical certificate, employer confirmation of when the sickness benefit entitlement ends, and a copy of the most recent payslip. Information on the use of the personal tax credit is also required. The right to sickness per diem payments expires after 24 months.

Alcohol- or drug treatment

The VR Sick Pay Fund provides sickness per diem payments for up to 120 days due to a disease caused by alcohol- or drug abuse.

Applications are submitted through My Pages and must include a sickness benefit medical certificate, employer confirmation of when the sickness benefit entitlement ends, and a copy of the most recent payslip. Information on the use of the personal tax credit is also required. The right to sickness per diem payments expires after 24 months.