• Jobs are registered via ‘My pages’ for employer on The Directorate of Labour’s website. 
  • An IceKey or electronic ID is required to register jobs. 
Apply for electronic ID Apply for Icekey Register job

COMPANY WITH AN EMPLOYEE ON PARTIAL BENEFITS

Please note that the application for an employment grant due to partial benefits is not ready.

Companies are able to apply for an employment grant from The Directorate of Labour for their employees who were paid partial benefits for the months of April and May 2021. It is permitted to apply for the grant payment until the 30th of June 2021.  
The grant is paid for up to five months, from the 1st of June 2021 until the 301th of October 2021.  
The grant amount is maximum 236.417 kr., plus a 11,5% pension fund counter-contribution. The payment is in accordance with the employment ratio. 

 
The conditions of the grant payments are as follows: 

  1. It has been agreed that the employee in questions will return to the employment ratio, or higher employment ratio stipulated in the employment contract before the employee began being paid partial benefits. 
  1. The company has no debt in regard to salary related and public fees, such as pension fund premiums, labour union fees and social insurance taxes.  
  2. The employment contract or its appendix stipulates that the employee is paid a salary in accordance with valid collective agreements, and are entitled to full vacation rights during the current vacation period in accordance with their previous employment ratio, regardless of them being on partial benefits.  
  3. The Directorate of Labour has received a conformation from the employee regarding their changed employment ratio and an agreement between them and the company in question regarding their vacation entitlement. The employee submits the confirmation via ‘My pages’ for job seekers. 

The Directorate of Labor is authorised to terminate a contract for a grant in the event of a breach of preconditions during the contract period, e.g. if the employment relationship is terminated or if the employee goes into a lower employment ratio during the contract period.  

Companies must send an invoice to the Directorate of Labor together with a confirmation of the employees' salary payments. Further information on the settlement process will be published soon. 
 

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SELF EMPLOYED/RECRUITMENT GRANT

Individuals who run businesses on their own ID number (kennitala) can apply for an employment grant from The Directorate of Labour.

The conditions for the payment of an employment grant are the same as those set for the payment of an employment grant to companies and institutes. An individual who runs a business on their own ID number must have paid monthly withholding tax on calculated remuneration (salary) amounting to more than 25% of Iceland Revenue and Customs’ reference amount in the relevant profession for the past three months and may not be receiving unemployment benefit payments. 

Following the submission of an application for a recruitment grant, a confirmation that calculated remuneration has been paid for at least the previous three months, together with confirmation of the reference category of calculated remuneration must also be submitted. The relevant documents can be obtained by sendinga request to stofnskra@skatturinn.is. It must be stipulated that this information is requested due to an application for an employment grant from The Directorate of Labor. It must also be stated that the requested information should be sent to the e-mail address of the relevant service centre: 

Capital Region:vinnumidlun@vmst.is 

Suðurnes: sudurnes@vmst.is 

Western Iceland: vesturland@vmst.is 

North-West Iceland: nordurland.vestra@vmst.is 

West Fjords: vestfirdir@vmst.is 

North-East Iceland: nordurland.eystra@vmst.is 

Eastern Iceland: austurland@vmst.is 

South Iceland: sudurland@vmst.is

The Directorate of Labor has the authority to terminate a grant agreement if withholding tax on calculated remuneration falls below 25% of Iceland Revenue and Customs’ reference amount or if the individual in question receives unemployment benefits during the period. 

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COMPANIES WITH FEWER THAN 70 EMPLOYEES

  • A company that hires a jobseeker who has been registered as unemployed for at least 12 months, receives a grant amounting to a full monthly salary, up to 472.835 kr. per month plus an 11.5% counter-contribution to their pension fund for up to six months. The maximum payment can therefore be 527,211 kr. 
  • Hiring a jobseeker means an increasing the number of employees, and the company has at least one employee on their payroll before hiring a jobseeker. 
  • The company has no debt in regard to salary related fees and public fees, such as pension fund premiums, labour union fees and social insurance taxes.  
  • The grant is paid in accordance with the employment ratio. 
  • It is also possible to pay a grant for the employment of jobseekers who have fully exercised their right to benefits after 1st of October 2020. The employment should commence after the 1st of July 2021.
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NON-GOVERNMENTAL ORGANISATIONS

  • Non-governmental organisations (NGOs), who operate as a charity and/or in humanitarian causes, are not operating for profit, and are exempt from tax obligations. 
  • An NGO that hires a jobseeker who has been registered as unemployed for at least 12 months, receives a grant amounting to a full monthly salary, up to 472.835 kr. per month plus an 11.5% counter-contribution to their pension fund for up to six months. The maximum payment can therefore be 527,211 kr. 
  • In addition, NGOs may receive a special grant amounting to up to 25% of the of the grant paid in each instance, to cover the costs of the NGOs involved in connection with the temporary initiatives in question. 
  • Hiring a jobseeker means an increasing the number of employees, and the NGO has at least one employee on their payroll before hiring a jobseeker. 
  • The NGO has no debt in regard to salary related fees and public fees, such as pension fund premiums, labour union fees and social insurance taxes. 
  • The grant is paid in accordance with the employment ratio. 
  • It is also possible to pay a grant for the employment of jobseekers who have fully exercised their right to benefits after 1st of October 2020. The employment should commence after the 1st of July 2021
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PUBLIC INSTITUTES AND MUNCIPALITIES

  • Public Institutes and municipalities that hire a jobseeker who has been registered as unemployed for at least 12 months, receives a grant amounting to a full monthly salary, up to 472.835 kr. per month plus an 11.5% counter-contribution to their pension fund for up to six months. The maximum payment can therefore be 527,211 kr. 
  • It is also possible to pay a grant for the employment of jobseekers who have fully exercised their right to benefits after the 1st of October 2020. 
  • Hiring a jobseeker means an increasing the number of employees, and the institute or municipality has at least one employee on their payroll before hiring a jobseeker. 
  • The public institute or municipality has no debt in regard to salary related fees and public fees, such as pension fund premiums, labour union fees and social insurance taxes. 
  • The grant is paid in accordance with the employment ratio. 
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Recruitment GRANT

  • All employers who wish to employ a jobseeker. 
  • A company that hires a jobseeker who has been registered as unemployed for at least one month, receives a grant amounting to up to 307.430 kr. per month plus an 11.5% counter-contribution to their pension fund for up to six months. The maximum payment can therefore be 342.784 kr. 
  • Hiring a jobseeker means an increasing the number of employees, and the company has at least one employee on their payroll before hiring a jobseeker. 
  • The company has no debt in regard to salary related fees and public fees, such as pension fund premiums, labour union fees and social insurance taxes.  
  • The grant is paid in accordance with the employment ratio. 

 

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