FAQ about financial aid

Maintenance assistance to those who are unable to earn a living.

If you are 18 years old, have legal residence in Reykjavík and meet the requirements for income and assets.

Legal residents in Reykjavík whose income and assets fall below a certain threshold are eligible for financial aid. The aid may take the form of a loan or a grant.

Aid may be provided to individuals and families for special circumstances, including home help, studying, or unexpected trauma, as per the Reykjavík City Rules on Financial Assistance.

You can apply online by clicking here.

If you do not have an electronic ID, you can apply at the Reykjavík City Centers.

The application is processed by the Online Service Center or handled by an employee of a Center.

If you are applying for financial assistance for the first time, or if six months have passed since you last applied for financial assistance, you need to visit a Center within two business days of submitting your application to verify your identity by showing a photo ID.

You will receive information about document submission during the application process. You must check if you are eligible for assistance from other sources and provide proof.

If your application is denied, and you believe there are exceptional circumstances, you can request a review by the Welfare Council Appeal Board.

The maximum financial aid to an individual is 239,895 kr. per month and 383,832 kr. per month for couples or common-law partners, however, household activities affect the amount of financial aid, see more information on the basic amounts in the Financial Assistance Rules.

The aid is independent of the number of children, as it is assumed that child benefits, child support and child pensions cover the costs of children. If children have the same legal residence as you, you may also be eligible for support in paying for daycare, preschool, after-school programs, and meals during the time the children attend those services.

All financial aid for maintenance is taxable and is used for calculating withholding taxes.

The amount of the financial aid, and financial aid eligibility, may be affected if the income earned in the previous month exceeds the granted financial aid.

Exceptions to counting previous month's income may be granted for:

a) People finishing rehabilitation who received rehabilitation pension from the Social Insurance Administration.

b) People receiving their final unemployment benefit payment from the Directorate of Labor.

c) People who recently completed a job through Reykjavík City's Virknihús Activity Center programs.

This exception applies to payments for the first month after benefits end from the above sources.

People in Virknihús Activity Center job programs, such as Individual Placement Support (IPS) and the Activity Support Team (AVM), can earn up to 50,000 krónur monthly without reducing their financial assistance while in the program.


 

If you would like to take advantage of your accumulated personal tax credit, or use part of it, please email the information to rfa@reykjavik.is.

Payment is made to the applicant’s bank account, if the applicant is eligible.

No, the service is free of charge.

It is compulsory to provide financial aid for the maintenance of persons and families who are unable to make a living without assistance, cf:

• Chapters IV and VI of the Municipal Social Services Act, No. 40/1991, as amended
• Reykjavík City Rules on Financial Assistance.

If you are paying support for a child who is a legal resident of Iceland, you can submit a confirmation from the Child Support Collection Center showing that you have a contract or that your payments are in good standing. If you are eligible, you can receive an increase in the amount of financial aid equal to the child support payment. The amount is paid to the Child Support Collection Center.

In that case, you will need to check your eligibility for unemployment benefits and show that you are actively seeking employment.

Then you have to submit a medical certificate confirming the period of incapacity for work, check the entitlement from the union sickness funds and check the entitlement to cash sickness benefits from the Icelandic Health Insurance.