Financial Support
Municipal authorities are obliged to provide their residents with the necessary financial support to ensure that they can sustain themselves and their dependents. Municipal social affairs committees and boards are responsible for providing social services and advice on social issues.
Foreign nationals have the same rights to access social services as Icelandic nationals. However, receiving financial support may affect your application for a residence permit or citizenship.
Effect on residence permit applications
Keep in mind that receiving financial support from municipal authorities may affect applications for extending a residence permit, applications for a permanent residence permit and applications for Icelandic citizenship.
Contact your municipal authority if you need financial support. In some municipalities, you can apply for financial support online on their website (you must have electronic ID to do this).
If an application is rejected
If an application for financial support is rejected, an appeal may be lodged with the Social Affairs Complaints Committee within four weeks of the decision being communicated.
Need urgent support?
If you are struggling to make ends meet, you may be eligible for support from community organisations. Certain conditions may apply. These include:
Mæðrastyrksnefnd Hafnarfjörður
Pepp is the association of People Experiencing Poverty. It is open to everyone who has experienced poverty and social isolation and who want to be involved in changing the conditions of people living in poverty.
Unemployment benefits
Employees and self-employed individuals aged 18-70 are entitled to receive unemployment benefit providing that they have earned insurance cover and meet the conditions of the Unemployment Insurance Act and the Labour Market Measures Act. Applications for unemployment benefits should be submitted online. There are conditions that need to be met to maintain the rights to unemployment benefits.
Debtors' Ombudsman
The Debtors’ Ombudsman acts as an intermediary for communication and negotiation with creditors, pursuing the interests of debtors, and helps individuals in serious payment difficulties, free of charge, to obtain a comprehensive overview of their finances and find solutions. The aim is to find as favourable solution as possible for the debtor, irrespective of the interests of the creditor.
You can make an appointment with an advisor by calling (+354) 512 6600. You need to present personal ID when attending an appointment.
Other financial support available
On the MCC website you will find information about social support and services. You can also find information about child support and benefits, parental leave and housing benefits.
For information on financial matters related to employment and compensation for prolonged illness or accident, please visit this section about worker’s rights.
Useful links
- About unemployment benefits
- Social Support and Services
- Child Support and Benefits
- Parental Leave
- Housing Benefits
- Workers' rights
- Find your municipality
- Debtors’ Ombudsman
Municipal authorities are obliged to provide their residents with the necessary financial support to ensure that they can sustain themselves and their dependents.