Students are not insured under the Act on Unemployment Insurance, except when the study is part of labour market measures as appointed by The Directorate of Labour.  

An applicant for unemployment benefits may pursue studies at the university level amounting to a maximum of 12 ECTS credits per semester, provided that the study rate is so low that the studies are not considered eligible for a loan from the Icelandic Student Loan Fund. 

  • The applicant shall inform The Directorate of Labour of studies and submit a confirmation from the relevant educational institution regarding the study ratio. 

If a jobseeker undertakes studies at university level of more than 12 ECTS credits per semester, or other studies, they must contact a counsellor at The Directorate of Labour to determine their right to unemployment benefits alongside studying. It is never permitted to pursue more than 20 ECTS credits alongside unemployment benefits. 

An applicant for unemployment benefits who has been enrolled in studies during the previous semester without having demonstrably completed the studies and intends to continue studies during the next semester, is not considered to be actively seeking employment while on study leave according to the teaching and / or curriculum of the school concerned. The same applies to students who change schools between semesters or proceed between school levels. 

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