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<h1>Social Security Programs Throughout the World: Europe, 2010</h1>
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<h1>Iceland</h1>
<div class="exchangeRate">Exchange rate: <abbr class="spell">US</abbr>$1.00 equals 124.45&nbsp;kronur.</div>
<h2>Old Age, Disability, and Survivors</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First laws:</span> 1909 and 1980.</p>
<p><span class="h4">Current laws:</span> 1992 (disability), 1997 (pension funds), 2007 (social security), and 2007 (social assistance).</p>
<p><span class="h4">Type of program:</span> Universal and mandatory occupational pension system.</p>
<h3>Coverage</h3>
<p><span class="h4">Universal pension:</span> All persons residing in Iceland.</p>
<p><span class="h4">Mandatory occupational pension:</span> All employed and self-employed persons aged&nbsp;16 to 70.</p>
<h3>Source of Funds</h3>
<h4>Insured person</h4>
<p><span class="h5">Universal pension:</span> None.</p>
<p><span class="h5">Mandatory occupational pension:</span> 4% of gross earnings.</p>
<h4>Self-employed person</h4>
<p><span class="h5">Universal pension:</span> 8.65% of presumptive income. (Presumptive income is employment income comparable with the remuneration one would receive if similarly employed by an unrelated person.)</p>
<p>The self-employed person's contributions also finance maternity and paternity benefits, work injury benefits, and unemployment benefits.</p>
<p><span class="h5">Mandatory occupational pension:</span> 12% of earnings.</p>
<h4>Employer</h4>
<p><span class="h5">Universal pension:</span> 8.65% of gross payroll.</p>
<p>The employer's contributions also finance maternity and paternity benefits, work injury benefits, and unemployment benefits.</p>
<p><span class="h5">Mandatory occupational pension:</span> 8% of the employee's wages.</p>
<h4>Government</h4>
<p><span class="h5">Universal pension:</span> Finances any deficit.</p>
<p><span class="h5">Mandatory occupational pension:</span> None.</p>
<h3>Qualifying Conditions</h3>
<h4><span class="nobr">Old-age</span> pension</h4
>
<p><span class="h5">Universal pension:</span> Age&nbsp;67 and has resided in Iceland for at least 3&nbsp;years between ages&nbsp;16 and 66 and has annual income below a certain ceiling. For a full pension, the insured must have resided in Iceland for at least 40&nbsp;years.</p>
<p>Age&nbsp;60 for some categories of seamen.</p>
<p>Pension supplement: A supplement is granted under certain conditions if the insured's annual income does not exceed a certain amount.</p>
<p>Deferred pension: A pension may be deferred up to age&nbsp;72.</p>
<p>Child's supplement: Paid for each dependent child younger than age&nbsp;18.</p>
<p>Social allowances (means-tested): Paid for living expenses such as housing and medicine costs if the insured's annual income does not exceed a certain amount.</p>
<p>Benefits are payable abroad under reciprocal agreement.</p>
<p><span class="h5">Mandatory occupational pension:</span> Age&nbsp;67 for private-sector employees or age&nbsp;65 for public-sector employees.</p>
<p>Early pension: From age&nbsp;65.</p>
<p>Deferred pension: The pension may be deferred up to age&nbsp;70.</p>
<p>Child's supplement: Paid for each dependent child younger than age&nbsp;18.</p>
<h4>Disability pension</h4>
<p><span class="h5">Universal pension:</span> The insured must be between ages&nbsp;16 and 66 and must have resided in Iceland for at least 3&nbsp;years. The insured must have an assessed degree of permanent disability of at least 75% as a result of a medically recognized disease or disability and have annual income below a certain ceiling.</p>
<p><span class="h5">Disability allowance:</span> Paid with an assessed degree of permanent disability of 50% to 74%.</p>
<p>Pension supplement: Paid for an unmarried person based on annual income.</p>
<p>Age-related pension supplement: Paid based on age when entitlement to a disability pension was first established.</p>
<p>Child's supplement: Paid for each dependent child younger than age&nbsp;18.</p>
<p>Social allowances (means-tested):Paid for living expenses such as housing and medicine costs if the insured's annual income does not exceed a certain amount.</p>
<p>The State Social Security Institute assesses the degree of disability following a medical examination by a doctor.</p>
<p>Benefits are payable abroad under reciprocal agreement.</p>
<p><span class="h5">Mandatory occupational pension:</span> Paid for the loss of at least 50% of earning capacity and a loss of income due to the reduction in earning capacity. The insured must have at least 2&nbsp;years of contributions.</p>
<h4>Survivor pension</h4>
<p><span class="h5">Universal pension:</span> The deceased and the survivors must have resided in Iceland for at least 3&nbsp;years.</p>
<p>Eligible survivors are orphans.</p>
<p><span class="h5">Bereavement social allowance:</span> Paid to a spouse who is widowed before reaching age&nbsp;67.</p>
<p><span class="h5">Mandatory occupational pension:</span> A surviving spouse's pension and an orphan's pension are paid if the deceased contributed for at least 24&nbsp;of the 36&nbsp;months before death or was receiving an <span class="nobr">old-age</span> or disability pension at the time of death.</p>
<p>Eligible survivors are a spouse or cohabiting partner (including a <span class="nobr">same-sex</span> partner) and children younger than age&nbsp;18.</p>
<p>The <span class="nobr">widow(er)'s</span> pension ceases on remarriage.</p>
<h3><span class="nobr">Old-Age</span> Benefits</h3>
<p><span class="h4">Universal <span class="nobr">old-age</span> pension:</span> The basic pension for an unmarried person is 351,528&nbsp;kronur a year. The benefit is reduced when annual income exceeds 2,575,220&nbsp;kronur and ceases when annual income exceeds 3,981,332&nbsp;kronur. The pension is paid monthly.</p>
<p>Pension supplement: 1,109,292&nbsp;kronur a year is paid for an unmarried person. The supplement is reduced when annual income exceeds a certain amount. The supplement is paid monthly.</p>
<p>The maximum pension is paid if the insured has resided in Iceland for at least 40&nbsp;years; if less than 40&nbsp;years, the pension is reduced proportionately according to the number of years of residency.</p>
<p>Different amounts apply for married and cohabiting couples.</p>
<p>Deferred pension: A pension is paid with increased benefits.</p>
<p>Child's supplement: 21,657&nbsp;kronur a month is paid for each child.</p>
<p>Social allowances (means-tested): Means-tested allowances help pay for certain living expenses such as housing and medicine costs.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in wages or the cost-of-living index (whichever is greater).</p>
<p><span class="h4">Mandatory <span class="nobr">old-age</span> occupational pension:</span> The pension is based on total individual contributions and the length of the contribution period. The minimum pension paid with 40&nbsp;years of contributions is 56% of lifetime average earnings (1.4% of average lifetime earnings per contribution year). The pension is paid for life.</p>
<p>Early pension: An actuarially reduced pension is paid. The reduction is permanent.</p>
<p>Deferred pension: Calculated in the same way as the mandatory occupational pension.</p>
<p>Child's supplement: The pension fund may provide at least 10,553&nbsp;kronur per child per month.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in wages or the cost-of-living index (whichever is greater).</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Universal disability pension:</span> The full basic pension for an unmarried person with an assessed degree of disability of at least 75% is 351,528&nbsp;kronur a year. The pension is reduced when annual income exceeds 2,575,220&nbsp;kronur and ceases when annual income exceeds 3,981,332&nbsp;kronur. The pension is paid from the first day of the month following the date of the award. The pension is paid monthly.</p>
<p>Disability allowance: The full pension for an unmarried person with an assessed degree of disability of 50% to 74% is 259,884&nbsp;kronur a year.</p>
<p>Pension supplement: 1,125,708&nbsp;kronur a year is paid for an unmarried person. The supplement is reduced when annual income exceeds a certain amount. The supplement is paid monthly.</p>
<p>Age-related pension supplement: From 8,784&nbsp;kronur to 351,528&nbsp;kronur a year is paid, depending on when the insured became eligible for a disability pension. The supplement is paid monthly.</p>
<p>The maximum pension is paid if the insured has resided in Iceland for at least 40&nbsp;years based on projected coverage until age&nbsp;67; the pension is reduced proportionately according to the number of years of residency less than 40.</p>
<p>Different amounts apply for married or cohabiting couples.</p>
<p>Child's supplement: 21,657&nbsp;kronur a month is paid for each dependent child younger than age&nbsp;18; the supplement is doubled if both parents have disabilities.</p>
<p>Social allowances (means-tested): Means-tested allowances help pay for certain living expenses such as housing and medicine costs.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in wages or the cost-of-living index (whichever is greater).</p>
<p><span class="h4">Mandatory occupational disability pension:</span> The pension is calculated according to the assessed degree of disability and the value of paid and credited contributions (projected to age&nbsp;67). The pension is paid from the first day of the month following the date of the award.</p>
<p>Child's supplement: 10,553&nbsp;kronur a month is paid for each dependent child younger than age&nbsp;18.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in wages or the cost-of-living index (whichever is greater).</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Universal survivor pension:</span> Each orphan younger than age&nbsp;18 receives 21,657&nbsp;kronur a month. The pension is doubled for full orphans.</p>
<p><span class="h4">Bereavement social allowance:</span> The <span class="nobr">widow(er)</span> may receive 32,257&nbsp;kronur a month for up to 6&nbsp;months; a reduced allowance of 24,165&nbsp;kronur may be paid for an additional 6&nbsp;months if the <span class="nobr">widow(er)</span> has a dependent child younger than age&nbsp;18.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in wages or the cost-of-living index (whichever is greater).</p>
<p><span class="h4">Occupational mandatory survivor pension:</span> The survivor pension is 50% of the disability pension the deceased would have been entitled to receive with a full disability. The pension is paid for 24&nbsp;months; there is no limit for a spouse supporting a child younger than age&nbsp;18 or for a spouse younger than age&nbsp;67 with a disability of at least 50%.</p>
<p><span class="h4">Occupational mandatory orphan's pension:</span> At least 14,390&nbsp;kronur per child per month is paid. The minimum pension is doubled for full orphans.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in wages or the cost-of-living index (whichever is greater).</p>
<h3>Administrative Organization</h3>
<p><span class="h4">Universal pension:</span> Ministry of Social Affairs and Social Security (http://felagsmalaraduneyti.is) provides general supervision.</p>
<p>Social Insurance Administration (<a href="https://www.tr.is">http://www.tr.is</a>) administers the programs through local offices.</p>
<p><span class="h4">Mandatory occupational pension:</span> Ministry of Finance (<a href="https://www.stjornarradid.is/raduneyti/fjarmala-og-efnahagsraduneytid/">http://fjarmalaraduneyti.is</a>) provides general supervision.</p>
<p>Forty-three independent pension funds administer the mandatory occupational pension program.</p>
<h2>Sickness and Maternity</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First laws:</span> 1936 (social security), 1973 (health service), and 1975 (maternity leave and benefits).</p>
<p><span class="h4">Current laws:</span> 2000 (maternity and paternity leave), 2007 (health service), 2007 (social security), and 2008 (health insurance).</p>
<p><span class="h4">Type of program:</span> Universal and social insurance system.</p>
<h3>Coverage</h3>
<p><span class="h4">Cash sickness benefits:</span> Employed and self-employed persons residing in Iceland.</p>
<p><span class="h4">Cash maternity benefits:</span> Employed and self-employed persons and parents residing in Iceland.</p>
<p><span class="h4">Medical benefits:</span> All residents of Iceland.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> None.</p>
<p><span class="h4">Self-employed person:</span> None for cash sickness and medical benefits. See source of funds under Old Age, Disability, and Survivors, for cash maternity and paternity benefits.</p>
<p><span class="h4">Employer:</span> None for cash sickness and medical benefits. See source of funds under Old Age, Disability, and Survivors, for cash maternity and paternity benefits.</p>
<p><span class="h4">Government:</span> The total cost of cash sickness and medical benefits; finances any deficit for cash maternity and paternity benefits.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Sickness benefits:</span> The insured must be aged&nbsp;16 or older, incapable of work as the result of a sickness for at least 21&nbsp;days, not receiving <span class="nobr">old-age</span> or disability benefits, and not receiving wages or employer-paid sickness benefits due to illness. A partial benefit is paid for those who receive 50% of their income due to illness.</p>
<p><span class="h4">Maternity and paternity benefits:</span> Both parents must have been working in Iceland for at least 6&nbsp;consecutive months before the first day of parental leave.</p>
<p><span class="h4">Maternity and paternity grants:</span> The insured must have resided in Iceland for at least 12&nbsp;months before the expected date of childbirth.</p>
<p><span class="h4">Medical benefits:</span> The insured must have resided in Iceland for at least 6&nbsp;months.</p>
<h3>Sickness and Maternity Benefits</h3>
<p><span class="h4">Sickness benefit:</span> At least 1,140&nbsp;kronur a day is paid for persons who do not receive wages or employer-paid sickness benefits due to illness; 500&nbsp;kronur a day is paid for persons who receive only 50% of their income due to illness. The benefit is paid after a <span class="nobr">14-day</span> waiting period.</p>
<p>(Employers must pay wages for at least 1&nbsp;month (may be extended, depending on collective agreements) to employees with at least 12&nbsp;consecutive months of employment. Cash benefits are not paid until wages have ceased.)</p>
<p>The duration of benefits is 52&nbsp;weeks in any one <span class="nobr">24-month</span> period.</p>
<p>Child's supplement: 312&nbsp;kronur a day is paid for each child younger than age&nbsp;18.</p>
<p><span class="h4">Maternity and paternity benefits:</span> Both parents may be entitled to benefits. For employees and self-employed persons, the benefit is 80% of the insured's average wage or income during the last 2&nbsp;years before the year of the child's birth.</p>
<p>The total combined leave period for a mother and father is 3&nbsp;months. The maternity leave period may start 1&nbsp;month before the expected date of childbirth; paternity leave is taken after childbirth. Parents decide how and when the leave period will be split between them. The leave period must be taken before the child is age&nbsp;18&nbsp;months.</p>
<p>If the insured is employed part time (between 25% and 49%), the minimum benefit is 82,184&nbsp;kronur a month; if employed between 50% and 100%, the minimum benefit is 113,902&nbsp;kronur a month.</p>
<p>The maximum benefit is 300,000&nbsp;kronur a month.</p>
<p><span class="h4">Maternity and paternity grants:</span> 49,702&nbsp;kronur a month is paid to parents working less than 25% time. The grant for a parent attending a <span class="nobr">full-time</span> education program is 113,902&nbsp;kronur a month.</p>
<h3>Workers' Medical Benefits</h3>
<p>A minimum fee is charged for a doctor's visit. Inpatient treatment in a public hospital or maternity ward is free of charge. Free medication is provided for some chronic diseases; for other medicine, the insured pays a minimum fee. A minimum fee is paid for <span class="nobr">X-rays</span> and travel costs.</p>
<h3>Dependents' Medical Benefits</h3>
<p>A minimum fee is charged for a doctor's visit. Inpatient treatment in a public hospital or maternity ward is free of charge. Free medicine is provided for some chronic diseases; for other medicine, the insured pays a minimum fee. A minimum fee is paid for <span class="nobr">X-rays</span> and travel costs.</p>
<p>Children up to age&nbsp;18 are entitled to a partial reimbursement of costs, and there is partial reimbursement for dental care for persons younger than age&nbsp;21.</p>
<p>There is no reimbursement for medical care for persons between ages&nbsp;18 and 66, except for disability pensioners.</p>
<h3>Administrative Organization</h3>
<p>Ministry of Health (http://heilbrigdisraduneyti.is) and the Ministry of Social Affairs and Social Security (http://felagsmalaraduneyti.is) provide general supervision.</p>
<p>Social Insurance Administration (<a href="https://www.tr.is">http://www.tr.is</a>) and Icelandic Health Insurance (<a href="https://island.is/s/sjukratryggingar">http://www.sjukra.is</a>) administer the programs through local offices.</p>
<h2>Work Injury</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1925.</p>
<p><span class="h4">Current laws:</span> 1992 (disability), 2007 (social security), and 2007 (social assistance).</p>
<p><span class="h4">Type of program:</span> Social insurance and social assistance system.</p>
<h3>Coverage</h3>
<p>Employed and self-employed persons, apprentices, persons engaged in rescue operations, and athletes participating in organized athletic activities.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> None.</p>
<p><span class="h4">Self-employed person:</span> See source of funds under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Employer:</span> See source of funds under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Government:</span> Work injury insurance is partly financed through general taxation.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Work injury benefits:</span> There is no minimum qualifying period.</p>
<h3>Temporary Disability Benefits</h3>
<p>1,392&nbsp;kronur a day is paid after a <span class="nobr">7-day</span> waiting period if the incapacity for work lasts for at least 10&nbsp;days. The benefit is paid for up to 52&nbsp;weeks.</p>
<p>Child's supplement: 3,120&nbsp;kronur is paid for each dependent child younger than age&nbsp;18.</p>
<p>The maximum benefit is 75% of earnings.</p>
<p>(Collective agreements provide for the continued payment of wages for a certain period (depending on agreements), in which case cash benefits are not paid until wages have ceased.)</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in wages or the cost-of-living index (whichever is greater).</p>
<h3>Permanent Disability Benefits</h3>
<p><span class="h4">Permanent disability pension:</span> For an assessed degree of disability of at least 75%, 351,528&nbsp;kronur a year is paid. For an assessed degree of disability of 50%, the benefit is 50% of the full pension and increases by 2% for each additional degree of assessed disability up to 75%. For an assessed degree of disability of 10% to 49%, a lump sum is paid according to the assessed degree of disability.</p>
<p>The State Social Security Institute assesses the degree of disability following a medical examination by a doctor.</p>
<p>Pension supplement: 1,125,708&nbsp;kronur a year is paid for an unmarried person.</p>
<p>Age-related pension supplement: From 8,784&nbsp;kronur to 351,528&nbsp;kronur a year is paid, depending on the insured's age when they first became entitled to a disability pension.</p>
<p>Child's supplement: 21,657&nbsp;kronur a month is paid for each child younger than age&nbsp;18 supported by the insured when the disability began. If the assessed degree of disability is 75% or more, a supplement is also paid for dependent children older than age&nbsp;18.</p>
<p>Social allowances (means-tested): Means-tested allowances are paid for certain living expenses such as housing and medicine costs.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in wages or the cost-of-living index (whichever is greater).</p>
<h3>Workers' Medical Benefits</h3>
<p>All necessary medical care is provided, including specialist services and hospitalization.</p>
<h3>Survivor Benefits</h3>
<p><span class="h4">Survivor pension:</span> If the insured dies within 2&nbsp;years after the date of injury or the date the occupational disease was diagnosed, the surviving spouse receives 32,332&nbsp;kronur a month for 8&nbsp;years.</p>
<p><span class="h4">Orphan's pension:</span> Each orphan younger than age&nbsp;18 receives 21,657&nbsp;kronur a month; the pension is doubled for full orphans. Children older than age&nbsp;16 with disabilities who were supported by the deceased when the injury occurred or the occupational disease was diagnosed receive a <span class="nobr">lump-sum</span> benefit of between 403,547&nbsp;kronur and 1,211,080&nbsp;kronur, depending on the degree of necessary support.</p>
<p>In the absence of other surviving relatives, a lump sum of 565,207&nbsp;kronur is paid to the deceased's surviving children or, otherwise, to the estate.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in wages or the cost-of-living index (whichever is greater).</p>
<h3>Administrative Organization</h3>
<p>Ministry of Health (http://heilbrigdisraduneyti.is) provides general supervision.</p>
<p>Social Insurance Administration (<a href="https://www.tr.is">http://www.tr.is</a>) administers the programs through local offices.</p>
<h2>Unemployment</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1956.</p>
<p><span class="h4">Current laws:</span> 2006 (unemployment) and 2006 (labor market).</p>
<p><span class="h4">Type of program:</span> Social insurance system.</p>
<h3>Coverage</h3>
<p>Employed and self-employed persons.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> None.</p>
<p><span class="h4">Self-employed person:</span> See source of funds under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Employer:</span> See source of funds under Old Age, Disability, and Survivors.</p>
<p><span class="h4">Government:</span> None.</p>
<h3>Qualifying Conditions</h3>
<p><span class="h4">Unemployment benefits:</span> The insured must be aged&nbsp;16 to 69, reside in Iceland, and have at least 10&nbsp;weeks of insured employment in the previous 12&nbsp;months. The insured must be registered at an employment office, be actively seeking, and available for, work, and have been unemployed for at least 3&nbsp;days before registration. For continuing entitlement, the insured must register at the employment agency every 2&nbsp;weeks.</p>
<p>Self-employed persons must have paid contributions in the last 12&nbsp;months before employment ceased and must have paid income tax for at least 3&nbsp;months.</p>
<p><span class="nobr">Part-time</span> work is permitted.</p>
<h3>Unemployment Benefits</h3>
<p>Up to 6,900&nbsp;kronur a day is paid. The minimum benefit after 10&nbsp;weeks of full employment is 1,725&nbsp;kronur a day. The benefit is paid from the first day if the insured is involuntarily unemployed; otherwise, after a <span class="nobr">40-day</span> waiting period. Benefits are paid for up to 3&nbsp;years.</p>
<p>Benefits are reduced proportionately if the insured&nbsp;works part time.</p>
<p>The full daily benefit is paid for 10&nbsp;days; thereafter, daily benefits are based on 70% of average earnings.</p>
<p>Average earnings are based on earnings during the <span class="nobr">6-month</span> period ending 2&nbsp;months before becoming unemployed.</p>
<p>Child's supplement: A daily supplement of 4% of the full benefit is paid for each dependent child younger than age&nbsp;18.</p>
<p>Benefit adjustment: Benefits are adjusted annually according to changes in wages or the cost-of-living index (whichever is greater).</p>
<h3>Administrative Organization</h3>
<p>Ministry of Social Affairs and Social Security (http://felagsmalaraduneyti.is) provides general supervision.</p>
<p>Directorate of Labor (<a href="https://www.vinnumalastofnun.is/">http://www.vinnumalastofnun.is</a>) administers the Unemployment Insurance Fund and the employment agencies.</p>
<h2>Family Allowances</h2>
<h3>Regulatory Framework</h3>
<p><span class="h4">First law:</span> 1946.</p>
<p><span class="h4">Current laws:</span> 2003 (income tax) and 2007 (social assistance).</p>
<p><span class="h4">Type of program:</span> Universal system.</p>
<h3>Coverage</h3>
<p>Children and parents or guardians&nbsp;of children residing in Iceland.</p>
<h3>Source of Funds</h3>
<p><span class="h4">Insured person:</span> None.</p>
<p><span class="h4">Self-employed person:</span> None.</p>
<p><span class="h4">Employer:</span> None.</p>
<p><span class="h4">Government:</span> The total cost.</p>
<h3>Qualifying Conditions</h3>
<p>The child must be younger than age&nbsp;18 and reside in Iceland and be supported by those who are subject to unlimited tax liability in Iceland.</p>
<h3>Family Allowance Benefits</h3>
<p><span class="h4">Child benefit (income-tested):</span> <span class="nobr">Flat-rate</span> benefits are awarded as a tax reduction&nbsp;to families with children and income below a certain level. The benefit is assessed based on the previous year's income. Advance payments are made on the first day of February and the first day of May each year.</p>
<p>The annual child benefit in 2009 is 61,191&nbsp;kronur for children younger than age&nbsp;7 at the end of the 2008 income year.</p>
<p>In addition, married or cohabiting parents receive a supplement of 152,331&nbsp;kronur for the first child and 181,323&nbsp;kronur for the second and each additional child. Single parents receive a supplement of 253,716&nbsp;kronur for the first child and 260,262&nbsp;kronur for the second and each additional child.</p>
<p>Income test: Benefits are reduced according to certain rules when income exceeds 3,600,000&nbsp;kronur for married or cohabiting parents; 1,800,000&nbsp;kronur for single parents.</p>
<p><span class="h4">Child education grant:</span> 21,657&nbsp;kronur a month is paid to children aged&nbsp;18 to 20 who are in <span class="nobr">full-time</span> education or vocational training if one or both parents are deceased or an <span class="nobr">old-age</span> or disability pensioner.</p>
<p><span class="h4">Social allowance (means-tested):</span> Means-tested allowances help pay for certain living expenses such as housing.</p>
<h3>Administrative Organization</h3>
<p>Ministry of Finance (<a href="https://www.stjornarradid.is/raduneyti/fjarmala-og-efnahagsraduneytid/">http://fjarmalaraduneyti.is</a>) provides general supervision for child tax benefits.</p>
<p>Directorate of Inland Revenue (<a href="http://rsk.is">http://rsk.is</a>) administers benefits in the form of tax reductions.</p>
<p>Ministry of Social Affairs and Social Security (http://felagsmalaraduneyti.is) supervises benefits administered by the Social Insurance Administration (<a href="https://www.tr.is">http://www.tr.is</a>) and supervises benefits administered by local authorities.</p>
<p>Social Insurance Administration (<a href="https://www.tr.is">http://www.tr.is</a>) and local authorities administer social allowances.</p>
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