Campaigns and activities
The two principle acts which had long governed the disability pension system are the Social Security Act (Lög um almannatryggingar No. 117/1993: English http://eng.velferdarraduneyti.is/media/acrobat-enskar_sidur/Social_Security_Act_100_2007.pdf (External link) ) and the Social Assistance Act (Lög um félagslega aðstoð 118/1993: English http://eng.velferdarraduneyti.is/media/acrobat-enskar_sidur/Social-Assistance-Act-No-99-2007-as-amended.pdf (External link) ). These acts were recently reissued and, combined with a number of amendments made over the years, are now known as the Social Security Act No.100/2007 (In Icelandic, Lög um almannatryggingar nr. 100/2007): English: http://www.althingi.is/english/elections/constituencies-/
and the Social Assistance Act No.99/2007 (In Icelandic, Lög um félagslega aðstoð nr. 99/2007): English: https://eng.velferdarraduneyti.is/media/acrobat-enskar_sidur/Social-Assistance-Act-No-99-2007-as-amended.pdf
- Minimum: 18
- Maximum: 67
- If YES, does the ceiling take into account the family situation of the person?
- If YES, give details.
The parent or parents who receive a disability pension are also entitled to receive a supplement for each dependent child (barnalífeyrir) they support up to the age of 18. The Barnalífeyrir is 29.469 ISK = € 208 a month per child.
- If the allowance is means-tested, state under what conditions.
It is important to note as well that there are a number of restrictions and reductions built into the system. First, there is a structured divide between those who are evaluated as ‘fully disabled' (75%) and those who are not (50–74%). The financial implications for the latter category are quite significant, as they are ineligible for a full pension.
These pensions and supplements are also means tested, as income from waged labour or contributory pension schemes (lífeyrissjóður) are considered in the calculations. There are also income caps placed upon the pensions.
- What is the amount of the allowance given to people with no other income, state briefly how the allowance varies according to other income or resources.
As per the disability pension system, there are essentially two classifications of recipients: those who receive a full pension (a rating of 75%, who are referred to as ‘disability pensioners' – örorkulífeyrisþegar), and those whose impairments are not considered as severe and receive a rating of 50–74%. The latter receive a much less generous ‘disability allowance' (örorkustyrkur) which is 29.469 or € 208 a month.
The maximum amount of the disability basic pension allowance (Grunnlífeyrir) as per 2016 is ISK 39.862 or € 281 a month. On top of the basic pension is included a pension supplement (tekjutrygging) which is ISK 127.652 kr. or € 900 a month. This is paid to full disability pension recipients (75%). Another important supplement is the household supplement (heimilisuppbót) which is ISK 37.071 or € 262 a month paid to those who live alone. Further, there is also a fairly recent age-related pension supplement (aldurstengd örorkuuppbót) based upon the age at which one applies to the pension system which is ISK 39.862 or € 281 a month.
|Benefit||Per Month||Per Year|
|Disability basic Pension (Tekjutrygging)||ISK 39.862 (€ 281)||ISK 478.344 (€ 3378)|
|Age-related supplement (Aldurstengd örorkuuppbót 100%)||ISK 39.862 (€ 281)||ISK 47/.344 (€ 3378)|
|Pension supplement (Tekjutrygging)||ISK 127.652 (€ 900)||ISK 1.531.824 (€ 10.816)|
|Household supplement (Heimilisuppbót)||ISK 37.071 (€ 262)||ISK 444.852 (€ 3141)|
|Maximum amount||ISK 244.447(€ 1080)||ISK 2.933.364 (€ 20.712)|
Those whose incomes exceed a certain amount (frítekjumark) begin to see a reduction in their pensions. As of January 2016, reductions are implemented should an individual pensioner's income exceed ISK 214.602 or € 1514 a month. An individual is completely ineligible for a pension should one's income exceed a cut-off point (núllmark) of ISK 374.050 or € 2369 a month.
- State briefly under what circumstances the allowance may be reduced.
It is indeed a rare situation for disability pensioners to receive the maximum amount. For example, a close examination of one table entitled Number of recipients with unreduced pensions and allowances 2014 (Tafla 1.14 Fjöldi lífeyrisþega með óskertan lífeyri og tengdar greiðslur 2014), reveals that in 2014 only 21,6 % of all pensioners received unreduced pension supplements (tekjutrygging) (as a percentage of total elderly, disability and rehabilitation pensioners). Further, the household supplement (heimilisuppbót) is solely intended for those who live alone and is never received by those who cohabitate.
- In order to compare the situation in different EBU member states, please indicate the minimum wage (if this exists in your country) for a full-time worker, and what is considered to be “the poverty line”.
The minimum wage is 245.000 ISK = € 1729 in May 2015.
- What are the organisations which calculate and attribute the allowance?
The disability pension system is administered by the Social Insurance Administration of Iceland (Tryggingastofnun ríkisins). It is now supervised by the Ministry of Welfare (Velferðarráðuneytið).
Fjöldi lífeyrisþega með óskertan lífeyri og tengdar greiðslur
Disability pensions had been tax free in the period from 1998 to 1996, but have since had to bear an increasing tax load which erodes the value of these pensions (Ólafsson retrieved July, 2011).
There are also a number of smaller benefits available to disability pensioners, such as discount cards for pharmaceuticals, as well as additional support for specific individuals who meet certain medical and economic criteria, such as assistance to buy and maintain a vehicle.
It is the same disability pension seen above.
Specify by giving details of the following aspects:
In generally it is the same as described above. The age-related pension supplement (aldurstengd örorkuuppbót) depends on the age at which one applies to the pension system. The earlier one gets the pension the higher the amount is and the maximum is ISK 39.862 or € 281 a month.
- Who attributes the allowance: State, local government, others, give details.
This pension supplement is paid by the Social Insurance Administration of Iceland (Tryggingastofnun ríkisins) as all the other pensions.
According to a Regulation No 233/2010 based on the Law on Service and Information Center for the Blind, Visually impaired and the Deafblind No. 160/2008 the Center provides assistive technology for all age groups based on the ISO 9999:2007, a classification of assistive products especially produced, or generally available, for persons with disability.
According to a Regulation No 233/2010 based on the Law on Service and Information Center for the Blind, Visually impaired and the Deaf blind No. 160/2008 the Center provides assistive technology for all age groups based on the ISO 9999:2007, a classification of assistive products especially produced, or generally available, for persons with disability.
Aid and devices are lent to blind and visually impaired users without any cost.
- Minimum: 0
- Maximum: no limit
- Duration of the allowance.
- What is the amount of the allowance?
- Which organisations attribute and pay the allowance:
State, local authorities, please give details.
- State briefly under what conditions the allowance can be reduced.