government.is (21.03.2020) The authorities, in cooperation with the Icelandic Federation of Labour and the Confederation of Icelandic Employers, have ensured that quarantined individuals will receive pay while they are in quarantine; however, during that time, other rights, such as sick days provided for in wage agreements, do not apply. This applies to the period from 1 February through 30 April 2020, and it applies to those who are unable to work while they are in quarantine. It is assumed that employers will pay wages to their employees and will then apply to the Treasury for reimbursement up to a specified maximum amount. The same applies to self-employed individuals if they have been forced to stop working due to quarantine during the above-mentioned period.
Payments to self-employed individuals in quarantine are based on 80% of their average monthly income in 2019. Payments are subject to a maximum of ISK 633,000 per month, or ISK 21,100 per day. Average income is based on the average of the estimated income used as the payroll tax base in 2019.
- Wage subsidy to self-employed of up to 80% of their average monthly income in 2019. Payable from February 1 to April 30 2020.
- Allowing access to third-pillar pension savings (private pension savings)
-Special supplemental child benefits will be paid out on 1 June 2020, in the amount of ISK 40,000 per child under age 18 (ISK 20,000 if the income is higher than ISK 11.1 m)
The Government is introducing a number of measures for individuals, so as to help them weather this temporary storm, in addition to the measures aimed directly at protecting jobs:
- Wages during quarantine
- Partial unemployment benefits
- Special child benefits
- Access to third-pillar pension savings (private pension savings)
- Increased and expanded reimbursement of value-added tax on labour
Wages during quarantine
The authorities, in cooperation with the Icelandic Federation of Labour and the Confederation of Icelandic Employers, have ensured that quarantined individuals will receive pay while they are in quarantine; however, during that time, other rights, such as sick days provided for in wage agreements, do not apply. This applies to the period from 1 February through 30 April 2020, and it applies to those who are unable to work while they are in quarantine. It is assumed that employers will pay wages to their employees and will then apply to the Treasury for reimbursement up to a specified maximum amount. The same applies to self-employed individuals if they have been forced to stop working due to quarantine during the above-mentioned period.
How large will my payments be if I am in quarantine and cannot work?
I am self-employed. Will I receive payments?
Yes. Payments to self-employed individuals in quarantine are based on 80% of their average monthly income in 2019. Payments are subject to a maximum of ISK 633,000 per month, or ISK 21,100 per day. Average income is based on the average of the estimated income used as the payroll tax base in 2019.