Foreign nationals

  • What effect does Brexit have on the payment of contributions at pension funds in Iceland?

    The act that applied before Brexit to the payment of contributions remains in effect through 1 January 2021.

    Thus, the rights acquired at Icelandic pension funds before Brexit are still preserved and paid out under the act in force through January 2021.

     (there was an exit agreement between Iceland and Britain that addressed this question) further information 

  • Can I get a refund of paid-in contributions if I leave the fund?

    Earned rights are preserved for the fund or funds you have paid into. When the time comes for pension payments, you must apply for them.

    When foreign nationals leave Iceland, they may be entitled to a refund of their contributions, providing they are nationals of countries outside the European Economic Area (EEA).

  • Are foreign nationals obliged to pay into pension funds?

    Under the Pension Fund Act, foreign nationals being paid wages in Iceland shall pay into a pension fund under the same regulations as Icelandic nationals. An exception to this is when a foreign national within the European Economic Area (EEA) is employed by a foreign company for a limited time and is in possession of an E 101 Certificate issued by his/her home country. Then, he/she enjoys the same insurance as the social security legislation of his/her home country stipulates.

  • What happens to the contributions paid by foreign nationals when they return to their home country?

    It is not permitted to refund contributions to foreign nationals within the European Economic Area (EEA). This is according to an agreement between the member states of the EEA on the application of social security regulations those who move between the member countries.

    Refunds of contributions to foreign nationals of countries outside the EEA are authorised when they move from Iceland. Both the contributions of the fund member and the employer will be refunded without interest but with adjustment for indexation. If the fund member has acquired the right to extrapolated calculation of disability (usually after 3 years), the refund ratio may be reduced.

    Further information