Employees - temporary support for payment of wages

Support for the payment of wages to employees who are not able to perform their work at the workplace in Grindavík and their wage payments have been terminated.

Act on Temporary Support for the Payment of Wages Due to the Natural Disaster in Grindavík.


Questions and answers

Who are entitled?

1. Who are entitled to support for the payment of wages?

People who are not able to perform their work at their workplace in Grindavík and wage payments from their employer have been terminated.

2. Must an employment relationship between and the employer and the employees have been established?

  • Yes an employment relationship must have been established even though payments of wages are terminated.

3. If I as an employee receive allowance from elsewhere - do I have a right to payments of wages?

  • Those who receive payments according to other Acts of law that are meant to be an allowance for the same period as the Act covers, are not entitled to payments.
  • If you receive an allowance via another insurance system, you might not be entitled to these payments.
    This may apply due to:
    • Sick leave payments
    • Accident per diem payments
    • Sickness per diem payments
    • Rehabilitation pension
    • Maternity/Paternity Leave If you are on Maternity/Paternity Leave as well as working, you are entitled to support in proportion to your employment ratio.
    • Bereavement leave
  • If you have any questions or are in doubt, then please contact us and we will assist you in taking the next steps.


1. What are the conditions for the support to employees due to the termination of wages?

  1. The conditions of the payment of wages are:
  • That employees are not able to work at the employer’s workplace in Grindavík due to the natural disaster, from the 11th of November to the 30th of June 2024.
  • That the employer has terminated all wage payments following the natural disaster in Grindavík.


That the company which the employee has worked for is in the general labour market in Grindavík.

2. Do I need to be domiciled in Grindavík to be entitled to this support?

No, the condition for support is that employees have been working at their workplace in Grindavík and cannot perform their work due to a natural disaster. The employee does not have to be domiciled there.

3. Am I entitled to support if I was made redundant?

If you were made redundant you might be entitled to support throughout the notice period. After that you can apply for unemployment benefits. We recommend that you familiarize yourself with your rights. Right to unemployment benefits. Or it's always good to ask Vinny. 

4. Do I have a right to support if I started work in Grindavík on the 1st of November and the employer is not going to pay me wages?

No, then you are not entitled to this support. The requirement for support is that you have been employed from August to October.  If you received no wage payments for that period from the employer then the Act does not apply to your circumstances but you might be entitled unemployment benefits. Here is information about your right to unemployment benefits. Right to unemployment benefits 

5. I have two jobs in Grindavík Can I receive support for both jobs?

  • Yes, you apply for support for both jobs on My Pages for job seekers if the employer has terminated the payment of wages for both jobs.
  • If one of the employers has terminated wage payments/employment, it is enough to apply only for support due to that employer.

6. Do I have a right to support if I was employed part-time?

Yes, you have a right to support if you were employed part-time. You apply on My Pages.

7. I have a part-time job and with a disability assessment Do I have a right to support?

Yes, you apply for support on My Pages.

My pages

8. I got another job which is not in Grindavík and therefore do not need a support, what do I do then?

If an employment relationship no longer exists, then you no longer have a right to support. You should then contact us studningur@vmst.is

Application process

1. Where do apply for support for the payment of wages?

  • You apply on My Pages for job seekers at The Directorate of Labour.
    My Pages

2. When can I apply?

You can apply now.


1. What is the basis of the amounts to employees who apply themselves for support?

When the employees themselves apply for support the amounts are based on your average wages for the period August - October 2023. The Directorate of Labour deducts 4% from the wages and pays it to a pension fund. The Directorate of Labour also pays a 11,5% counter contribution.

2. What are the amounts of support based on?

  • The support for the payment of wages is based on the calendar month and the amount is proportionately lower for a shorter period, for example if you are employed 50% of a full time position.
  • Payments can never amount to more than 633.000 kr. based on a full calendar month, in addition to an amount equal to 11,5% counter contribution to a pension fund for a total of 705.795 kr.

3. What happens if employees were de-registered from payroll just before evacuation?

  • If employees were de-registered from the employer’s payroll, for example on the 15th of November, the payments will be based on the average wages of the employee and the time period when the employee did not receive wages.
  • Example: If an employee’s average wages have been 600.000 kr., a payment to him or her will be 300.000 kr., taking into account an additional 11,5% of that amount which The Directorate of Labour pays as a counter contribution to a pension fund (600.000.- * 0,5 = 300.000)


1. What date are payments based on?

  • Payments are based on the date when the employer decided to terminate the payment of wages.
  • Payments can be made, at the earliest, from the 11th of November 2023.

3. Will payments be made to a union of this support?

No, according to the Act on Temporary Support, payments to unions are not required. The Directorate of Labour encourages applicants to contact their union for more detailed information about further payments.

4. Is the support for payment of wages taxable?

  • Yes, the support for payment of wages is taxable.
  • The Directorate of Labour will use your personal tax credits upon request when paying out payments. This is done via My Pages.
  • You will not be able to use your personal tax credits for payments from The Directorate of Labour for November 2023.

Var efnið hjálplegt?

Þakka þér fyrir þitt álit.
Það væri gagnlegt að vita meira um hvað þér finnst.

Hvað er helst að?

Hunang Hunang logo

Þessi vefur notar vefkökur (e. cookies).

Sjá nánar í persónuverndarstefnu Vinnumálastofnunar.

Hi, Vinný here! How can I assist you?
Vinný snjallmenni