Benefit to parents with children who have long-term illnesses or who are disabled
The benefit is designed to compensate for the parents’ loss of income while caring for sick children. There are three benefit categories i.e. for working parents, for students and for those who neither work nor study.
The parents have a joint entitlement to the benefit. The parent shall be responsible for the care of the child or have joint care with the other parent. The parents decide themselves how they will share the benefit between them providing both meet the conditions but they are not both entitled to the benefit for the same period. Exceptions are made for children at a hospice if the parents have not fully utilised their entitlement. Parents and children shall be registered for census purposes on Iceland during the period when the benefit is paid. To receive the benefit, the parent must cease working at least 14 days to care for the child.
Benefit to working parents
In addition to the above, the most important conditions are that the parent must have been available on the Icelandic labour market continuously for at least 6 months and working for at least 25% each month before the child was diagnosed. The benefit to the parents amounts to 80% of the average wage and up to a maximum limit based on a twelve month period that begins two months before the child is diagnosed. The payment of the benefit can begin when full pay ceases and can continue for up to 6 months.
Benefit to parents who are studying
In addition to the above, the most important conditions are that the parent has been studying 75-100% full time for at least 6 months during the last 12 months before the child is diagnosed and that the parent discontinues studying for at least one term to care for the child and that the parent has been registered for census purposes on Iceland for the last twelve months before the child was diagnosed. Benefit payment to parents who study comprises a given amount per month counted from the 14th weekday from the date when the child was diagnosed. The payment can be paid for up to 3 months and is paid when the term comes to an end and there is confirmation that the studies have discontinued.
General benefit – base amount
Parents outside the labour market and parents who have used their entitlement fully as working parents or have studied are entitled to the base amount. Parents have a joint entitlement until the child reaches the age of 18. Conditions for the benefit are that the parent has neither worked nor studied. The benefit is a given amount per month. The benefit is reduced if the parent has an income or receives other benefit(s).