Financial assistance

Every individual is obliged to provide for oneself, spouse, and children under the age of 18. The Family Department of Árborg Municipality provides financial assistance to individuals and families who cannot provide for themselves and their families without assistance, in accordance with the Municipalities' Social Services Act, No. 40/1991 and the Financial Assistance Regulations of the Árborg Municipality. Financial assistance is provided in relation to other countermeasures of social services. 

Right to financial assistance 

Individuals with a legal household in Árborg Municipality who have income equal to or below the threshold can apply for financial assistance. Revenue limits are based on the amount of financial assistance. Couples who are in a registered cohabitation in the National Registry have the same right to financial assistance as married couples. 

The applicant should check beforehand if he or she is eligible for other payments before applying for financial assistance. These include aids from social security, unemployment insurance, student loans, maternity funds, pension funds and trade union health funds. The applicant must report any change in income and family circumstances, because such changes may affect the right to financial assistance. Financial assistance provided on the basis of false or misleading information is to be repaid. It is permitted to provide a grant or a loan due to special circumstances.

Application for financial assistance 

The application for financial assistance shall be submitted through Mín Árborg together with the relevant documentation. The application form contains information about the applicant, including the legal household, family type, spouse and children's names, and detailed information about income and assets.

After all the documentation has been submitted, the applicant is invited for an interview with a social worker. The following documentation must be attached to the application: 

  • All income information from the last 3 months 
  • All spouse's income information from the last 3 months 
  • Tax returns of applicant and his/her spouse, if applicable 
  • Confirmation from the Directorate of Labour if the applicant is able to work 
  • A medical certificate if the applicant is not able to work
  • Confirmation from the school and a timetable (if applying for a school grant) 
  • Webkey (Veflykill fagaðila) 

Child benefits are not counted as income. 

Financial assistance amount 

The contribution base of individuals 18 years and older who can prove that they run their own home is 1.0 or 164,377 ISK. Running own home refers to the situation when the person lives in their own premises or rents accommodation and provides a registered rental agreement (þinglýstur húsaleigusamningur).  

  • Financial assistance amount for couples who are married or in a registered cohabitation is 1.6 or 263,003 ISK. A taxable income is deducted from the amount of financial assistance, according to the Article 13. The amount of financial assistance is independent of whether a child or children live in the home, excluding the situation discussed in point 3 of this Article.
  • Financial assistance amount of persons 18 years of age and older living with others, renting accommodation without a registered rental agreement or not having access to housing is 0.8 or 131,502 ISK. 
  • Financial assistance amount of individuals living with parents. 0.45 or 73,970 ISK. 

Reduction of financial assistance 

If the applicant for financial assistance refuses employment or quits his/her job without an explanation, he/she is allowed half of the basic amount of financial assistance the month in which the applicant refuses work and the month thereafter. The same applies to an unemployed applicant who does not demonstrate his/her confirmed registration from the Inspectorate of Labour. The rights are impaired in the same way in case of an applicant who has stopped participating in supportive initiatives/rehabilitation and implementing an individual plan with a social worker, except for the special reasons revealed during the evaluation of the applicant's situation.