Social security in Europe

Persons aged 16-70 years are entitled to unemployment benefits (atvinnuleysisbætur) if they have been working legally for at least 3 months in Iceland. You can receive benefits for up to three years. The premium to the Unemployment Insurance Fund is paid by your employer (Employers' contribution, Tryggingagjald). You are entitled to unemployment benefits if you are:

Unemployed
Living in Iceland (have a residence permit or are a citizen of one of the Nordic countries).
Have worked legally for at least 3 months during the last 12 months
Are actively seeking a job
Are capable of working and willing to take all general job offers
If you have worked in Iceland for three months in at least quarter-time employment you have earned the right to minimum benefits, which entitles you to ¼ of the basic rate. With the E-301 form which is a statement of your work periods in your home country/ other EEA country, you can transfer your rights to unemployment and thus become eligible to full benefits, given that you have worked full time for 12 months. It is therefore wise to take with you an E-301 form when coming to work in Iceland. From 1 January 2009 the basic rate of unemployment benefit is 149 015 ISK per month. On top of that you can get income based benefits for three months. This will be 70% of your average wage for the last six months, but not more than 234 229 ISK per month. The Directorate of Labour pays the benefits and you register at one of their local offices. You should be prepared to observe all the requirements of the Directorate of Labour as regards jobseekers. You must, for example, between the 20th and 25th each month, confirm your search for work by telephone, email or by confirmation online at www.vinnumalastofnun.is. You can also confirm in person at the Directorate of Labour office. The office is open 09:00-15:30 Mon-Thur and until 12:00 on Fridays.

If you are unemployed and receiving benefits in your home country you can come to Iceland to search for a job on benefits from your home country for up to three months. To transfer your benefits you must obtain an E-303 form at your local employment service. In the same way people who receive unemployment benefits in Iceland can apply for E-303 to search for work elsewhere in the EEA.