Basic (04-19)
GN 01763.010 Overview of the Icelandic Social Security System
The Icelandic social security system provides old-age retirement, disability, and
survivor benefits.
The Icelandic social security system is a three-pillar social insurance scheme.
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The first pillar system pays flat rate benefits to persons who have resided in Iceland
for the required period and who do not earn more than a certain amount of income.
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The second pillar system is a mandatory occupational pension system (similar to a
401(k) in the United States) to which employers and workers are required to contribute
a certain portion of income.
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The third pillar system is the option for employers and workers to make additional
tax-deductible contributions to a pension fund on behalf of the worker.