Margrét, VR member for 7 years, in full-time employment |
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VR Contingency Fund Margrét uses her VR Contingency Fund annually to pay for fitness activities. Her average salary in 2024 was ISK 740,000 per month, and she had aprox. ISK 29,000 deposited into her Contingency Fund following the annual general meeting this year. Since the grant for fitness activities is not taxed and there is no cap on the amount paid out from the VR Contingency Fund, she received her full balance of ISK 29,000, regardless of the percentage of the invoice. |
Traditional Grant System In the traditional grant system, Margrét applies for a grant for fitness, which is capped at ISK 25,000 and 50% of the invoice. Her invoice was ISK 55,000 and she received an untaxed grant of ISK 25,000. She also applied for a grant for a psychologist, totaling ISK 75,000. Such grants are taxed and capped at 60% of the invoice, and she received around ISK 30,800. In the traditional grant system, Margrét received grants totaling ISK 70,000 for the year before tax or ISK 55,800 after tax. |
Jón, VR member for 4 years, in full-time employment
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VR Contingency Fund Jón needs to undergo a dental procedure. He has never withdrawn from his VR Contingency Fund and had ISK 120,000 in the fund at the beginning of the year, accumulated over the past four years, which he uses to pay for the procedure. Grants for all medical services are taxed, so he receives approx. ISK 82,000. |
Traditional Grant System In the traditional grant system, Jón seeks a grant from the union to pay for the expensive procedure. But in such a system, grants for dental services are not available. The same applies to grants for other medical services. |
Kristín, VR member for 1 year, earning below minimum wage
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VR Contingency Fund Kristín works part-time in retail, and her average monthly salary in 2024 was ISK 275,000. In March this year, ISK 11,000 was deposited into Kristín’s Contingency Fund. She applied for a grant for holiday accommodation and was able to use the entire balance, and grants for holiday accommodation are not taxed. Kristín also purchased two flight vouchers, each subsidized by ISK 6,100, totaling a subsidy of ISK 12,200. Altogether, Kristín received ISK 23,200 in grants and subsidies from the VR Contingency Fund. |
Traditional Grant System In the traditional grant system, Kristín is entitled to 60% of a full grant as her wages are 60% of VR’s minimum wage. She applied for a fitness grant and received 60% or ISK 15,000, and this grant is untaxed. She also applied for a grant for holiday accommodation and received 60% of the grant or ISK 15,000. That grant is also untaxed. In the traditional grant system, flight gift certificates are not available, so Kristín does not receive a flight subsidy. Kristín received a total of ISK 25,000 in grants for the year. |
Magnús, VR member for 3 months, student in summer job
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VR Contingency Fund Magnús worked in retail during the summer of 2024 between school semesters. He worked full-time for three months and earned a total salary of ISK 1.4 million over the summer. At the end of March this year, just under ISK 4,700 was deposited into Magnús’ VR Contingency Fund, which he can use, for example, to pay part of his school fees. |
Traditional Grant System In the traditional grant system, Magnús checks whether he can receive a grant from VR to help pay school fees or for the fitness membership he just purchased. But to be eligible for a grant, he must have paid membership fees for six of the past twelve months in employment, including one of the last three, so he is not eligible for a grant. |