Grants

VR Contingency Fund

The VR Contingency Fund combines entitlements from different funds. Please note that payments from the Contingency Fund are subject to taxation, and tax will be deducted on withdrawal. Exceptions from this rule are payments amounting to ISK 25,000 per year for physical exercise in fitness centres, swimming pools or golf clubs. Members can use the VR Contingency Fund for:

  • educational leave and educational services
  • maintenance costs in conjunction with unemployment benefits
  • retirement after reaching the age of 60
  • loss of health
  • purchase of life, accident and sickness insurance
  • purchase of physical exercise, rehabilitation, psychological, medical and dentistry services
  • purchase of support equipment such as spectacles and hearing aids
  • purchase of holiday related services

If members leave VR, their entitlement credits will be reduced by 25% after the elapse of 24 months from the payment of premiums and thereafter correspondingly each year until entitlements are fully cancelled.

Vocational training fund

Vocational training grants are awarded according to a points credit system. However, the amount may never exceed the equivalent of half the course fee. Members whose native language is a language other than Icelandic are entitled to a grant of up to 75% of the cost they bear for Icelandic language courses for foreigners. As well as vocational training grants, the fund grants hobby course grants up to a maximum of ISK 30,000 and travel grants for vocational training courses held in Iceland or overseas if such courses are not available locally. Travel grants are not provided for sales or goods exhibitions, visits to individual companies, conferences that are general in nature or in-service training.

Application forms

Application for a grant from the VR Contingency Fund

Payments are effected on Fridays and applications must be submitted no later than the preceding Friday. Payment receipts/confirmation must be attached and may be up to 24 months old when the application is made. The payment receipt must have the stamp of the company in question and the name and ID No. of the member. The applicant must personally complete and sign the application form. Applications completed by persons other than the member will not be accepted except with the written authorisation of the member.

PLEASE NOTE:

Payments from the VR Contingency Fund are subject to withholding tax which is deducted when the withdrawal from the fund is effected. The application allows for the selection of a tax bracket. Exceptions from the obligation to pay withholding tax are payments amounting to a maximum of ISK 25,000 per year for physical exercise in fitness centres, swimming pools or golf clubs.

See here for other applications forms, in Icelandic only, or please seek the assistance of the VR service centre, tel. 510 1700.