News - 22.05.2026
Changes to the VR Sick Pay Fund
Changes to the VR Sick Pay Fund were approved at VR’s annual general meeting on 26 March. The changes are intended to respond to the fund’s deteriorating financial performance and enable it to meet its obligations.
The main changes are as follows:
- The basic entitlement to per diem payments will be four months. After four months, it is possible to apply for per diem payments for up to an additional two months. The maximum entitlement changes from seven months previously to six months.
- The VR Sick Pay Fund will pay 80% of wages, taking into account per diem payments from Icelandic Health Insurance.
- Per diem payments for jobseekers will be conditional on paying contributions to the Fund.
Changes to older members’ entitlement to death benefits, which will lapse two years after the individual became an older member in accordance with the provisions of VR’s rules.
The changes have already taken effect.
