Sickness Fund - Stéttarfélag Vesturlands
Compensation rules from and including 1. January 2023
The criterion for receiving full compensation rights is ISK 43.000 during the last 12 months; this number is the criterion from 1 January 2023.
In instances where the parties paying contributions are working while studying, such as working for 2 summers or doing seasonal work, it is authorised to view the preceding 24 months when assessing their rights to the Sickness Fund. If the party in question has achieved a minimum of 6 months’ work during the period, then he has gained a proportional right as long as that party has paid into the Fund during the same period.
Extended rights of senior citizens and handicapped: Pursuant to Article 11.1 in the Fund regulation, the rights of Fund members that have stopped working because of their age or a handicap are extended unimpaired for 12 months from the time of the end of the employment, if they have paid into the Fund during the 5 years preceding the end of their employment. After that time, they have the right to 60% of the benefits that those paying into the Fund enjoy. In addition to this, their dependants have a right to compensation for death pursuant to this Article, now ISK 290.000.
Article 12.5 in the Fund regulation was activated from 1 January 2018:
The number of days of paid per diem pursuant to item 12.1, to those to those for whom contributions are paid which are proportionately lower than 1%, can be impaired in the same proportion as the contribution is lower than 1%.
Members on the general market (workers, tradesmen and shop workers) and at municipalities 120 days. Members who work for the state 90 days.
The general market and municipalities pays 1% or more into the Sickness Fund. Contributions from the state to the Sickness Fund are 0.75% of wages for the employee in question.
A new final sentence to Article 12.1 is now as follows: The Fund board can, under special circumstances, assess whether per diem should be paid longer than for one compensation period and can decide what the amount of the per diem should be. The board of the Sickness Fund can (under these circumstances) oblige a member who is receiving payments from the Fund, to seek counselling at Virk.
Attention is drawn to Article 15 of the Fund regulation on the expiry of compensation rights:
Article 15 - Expiry of compensation rights
15.1 The right to per diem during absence because of sickness or accident pursuant to Articles 12.1 and 12.4 becomes void if it is not sought within 12 months from the time that the right became active.
15.2 The right to benefits pursuant to this regulation becomes in other respects void if it is not sought within 12 months from the time that the right became active.
The amount of maximum per diem and death compensation will be increased on 1 January 2019, in accordance with the wages index pursuant to the rules of ASÍ. Compensation for death takes into account the consumer price index from 1 January 2017. The rules on compensation were last confirmed at the AGM of the Stéttarfélag Vesturlands on 17 May 2018. The rules on compensation as they are now were confirmed at the meeting of Trúnaðarráðs on 14th of December 2022