News - 20.03.2026

The AGM discusses changes to the VR Sick Pay Fund

Proposed amendments to the regulations of the VR Sick Pay Fund will be presented at the union’s Annual General Meeting on Wednesday, 25 March. The aim of these changes is to respond to the fund’s deteriorating financial position and enable it to meet its obligations.

An actuarial review of the VR Sick Pay Fund was conducted last year. The results clearly show that the fund is not sustainable. It does not have the financial capacity to respond to unexpected expenses or to contribute to the VR Contingency Fund. Furthermore, the fund lacks the flexibility needed to build reserves for higher future expenses, while VR members are largely young people and future obligations are significant. Changes made to the social security system last year have also affected the rights and operation of the fund.

The Board of VR has reviewed the fund’s position and proposes that changes be made to ensure continued service to fund members, including the following key proposals:

• Entitlement to per diem payments will be a maximum of six months instead of seven as before. The entitlement will be divided into two parts, with the possibility of applying for per diem payments for up to two additional months after four months have passed.
• The VR Sick Pay Fund will pay 80% of wages, taking into account per diem payments from Iceland Health.
• Per diem payments for job seekers will be conditional on payment of contributions to the fund.
• Changes will be made to the entitlement of older members to death benefits.

We encourage members to attend the Annual General Meeting. See more detailed information about the proposals and registration for the meeting here.