Sickness per diem payments

The VR Sick Pay fund provides sickness per diem payments after the expiration of wage income in the case of a VR member becoming unable to work due to sickness or accidents (with the exception of accidents due to motorized vehicles).

Per diem payments are provided from the time of expiration of contractual or statutory wage payments by the employer. Maximum payments are 210 days (or 7 months).

If a member has e.g. worked for one year by the same employer he/she has a two months’ sickness right. When a member has made full use of his/her sickness rights and the sickness persists for longer, the member can turn to VR and apply for payments from the Sick Pay fund.

Amount of sickness- and accident payments

  • Sickness- and accident per diem payments are 80% of average wages, provided that no payments are being received due to temporary disability according to reliability insurance for the same period.
  • Sickness per diem payments are based on average wages of the beneficiary, based on payments to the VR Union- and Sick Pay funds for the last 6 months prior to the expiry of the wage payments. If considerable changes have occurred in the wages during the respective 6 months, it is permissible to evaluate the income specifically and then over a longer period. The average wages of those who have paid for less than 6 months to the VR Sick Pay fund are calculated in the following way:
  • He/she who has acquired the right to sickness- and accident per diem payments from a sick pay fund of another union within ASÍ gains a right to the VR Sick Pay fund after having paid to the VR Union- and Sick Pay fund for one month, provided he/she has had a right to the prior fund. Average wages of the respective individual must be based on the number of months that he/she has paid to the VR Sick Pay fund.
  • Average wages of those who do not have a right to a sick pay fund of a different union and have not paid the equivalent of a minimum fee to the VR Union- and Sick Pay fund must be found by dividing into the wages of the reference period by 6 months, even if payments have been made for less than 6 months.
  • It must be a general condition for grants and sickness per diem payments that the applicant first comes for an interview with a fund counsellor and that his/her documents are reviewed by the fund’s doctor to assess possible rehabilitation options.

Documents which must be delivered to VR are a written application along with a medical certificate. A confirmation from the employer must also be delivered as well as a request for the use of personal tax credit. The right to sickness per diem payments expires after 24 months.

Per diem payments due to a serious sickness of a spouse

Per diem payments due to a serious sickness of a spouse are paid for up to 90 days (80% of wages). Per diem payments can be applied for by filling in an application for sickness per diem payments.
Documents which must be delivered to VR are a written application along with a medical certificate. A confirmation of an employer must also be delivered as well as a request for the use of personal tax credit. The right to sickness per diem payments expires after 24 months.

Alcohol- or drug treatment

The VR Sick Pay fund provides sickness per diem payments for up to 120 days due to a disease caused by alcohol- or drug abuse.

Documents which must be delivered to VR are a written application along with medical certificate. A confirmation of an employer must also be delivered as well as a request for the use of personal tax credit. The right to sickness per diem payments becomes void in 24 months.

Example of sickness- and accident per diem payments

Income for illness or accidents
  80.000
  120.000
  160.000
  200.000
Per diem payments from the Sick Pay fund
  64.000
  96.000
  128.000
  160.000

How do I apply?

Applications can be sent along with attachments to the e-mail address vr@vr.is or sent to VR, Hús verslunarinnar, Kringlan 7, 103 Reykjavík. Marked: c/o Sick Pay fund.

Sickness per diem payments must be applied for before the 21st day of each month for the payment to arrive on the 1st day of the following month.

Note!

Members may also be entitled to per diem payments from the Icelandic Health Insurance.