The Public Sector Relief Fund is available to BHM members who work in the public sector, whether for the government or municipalities. The Fund provides an array of grants.

We offer assistance and information concerning the Public Sector Relief Fund through web chat, email, and phone at 595-5100, or you can visit our office at Borgartún 27.

The service desk operates from Monday to Thursday, 9:00 AM to 3:00 PM, and from 9:00 to 13:00 on Fridays.

Fund members are eligible for a grant of up to ISK 20,000 to support their engagement in physical activity and sports.

The physical activity grant provides a maximum of ISK 20,000 within a 12-month period. However, this grant does not cover the purchase of equipment or other devices aimed at enhancing physical well-being.

Fund members are entitled to a grant for cancer screening and examinations.

A maximum grant of ISK 10,000 for breast cancer screenings

A maximum grant of ISK 5,000 for a cervical screening and a cervical smear at a healthcare centre or with a gynaecologist.

A payment of ISK 10,000 is made if a member has to undergo further testing. 

A payment of ISK 10,000 is made for colon cancer screening.

A payment of ISK 10,000 is made for prostate cancer screening

The grant amount is subject to withholding tax deduction.

Fund members are entitled to a maximum grant of ISK 43,000 for treatment by certified healthcare professionals.

The highest reimbursement for out-of-pocket expenses is ISK 43,000 per each 12-month period, applicable to treatments by certified healthcare professionals. The eligible treatments include:

Other comparable treatment by certified health care professionals. 

Construction of insoles by a prosthetics specialist.

Generally, courses and medical costs are not eligible for this grant. Please note that withholding tax is deducted from the grant amount.

Fund members are eligible for a maximum grant of ISK 100,000 to assist with the expenses of purchasing hearing aids.

The fund provides a grant to offset the cost of hearing aids. The maximum grant available is ISK 100,000 or 30% of the remaining amount the fund member needs to pay after deducting the grant received from the Icelandic Health Insurance. This grant is available every three years.

Please note that withholding tax is deducted from the grant amount.

Fund members can receive a grant of up to ISK 10,000 for risk assessment of heart diseases.

Fund members can receive a grant of up to ISK 10,000 for the initial examination of risk assessment for heart diseases.

Please be aware that withholding tax is deducted from the grant amount.

Fund members receive a maximum grant of ISK 175,000 for the birth of each child. 

Both parents are eligible to receive a grant of ISK 175,000 for the birth of a child. This grant is provided to parents upon presentation of a birth certificate or registration certificate from Registers Iceland (Þjóðskrá). If a miscarriage occurs after 18 weeks of pregnancy or in the case of stillbirth, the Fund offers half of the grant. Applications must be submitted within 24 months of the child's birth.

Fund members receive a maximum grant of ISK 120,000 for in vitro fertilization treatments.

The fund provides reimbursement of 30% of the expenses for artificial insemination, microscopic, or in vitro fertilization treatments. The maximum grant available is ISK 120,000 within a 12-month period. However, the purchase of medicinal products is not eligible for this grant.

Fund members are eligible for a maximum grant of ISK 50,000 every two years for stays at rehabilitation clinics.

If fund members stay at the NLFÍ health institution or the Blue Lagoon Clinic based on a doctor's recommendation, the fund covers 30% of the invoice.

Additionally, the fund covers 30% of the invoice for treatment related to alcohol and/or drug addiction, as recommended by a doctor.

The maximum grant available is ISK 50,000 every two years.
Please note that withholding tax is deducted from the grant amount.

In the event of a Fund member's passing, death benefits of up to a maximum of ISK 350,000 are paid to the member's heir.

Death benefits are provided in case of a Fund member's passing:

Upon the passing of a contributing Fund member, death benefits amounting to ISK 350,000 are paid to the member's heirs. The same rule applies to Fund members who have retired due to age and pass away within two years after retirement. However, the entitlement to death benefits will expire if an application is not submitted within 24 months from the date of death.

Applications for death benefits, resulting from the demise of a Fund member, must include an exchange progress overview alongside a duly completed and signed application form. The grant is disbursed to the legal heirs.

Death benefits due to the death of the child of a Fund member:

The application is submitted through Mínar síður BHM

In the event of a Fund member's child under the age of 18 passing away, death benefits totalling ISK 350,000 are provided. This provision also covers cases of stillbirth or miscarriage after the 18th week of pregnancy. If appropriate, benefits are distributed to the legal heirs.

Applications for death benefits resulting from the death of a Fund member's child should be accompanied by a death certificate, along with a completed and signed application form. The grant is disbursed to the legal heirs.

For applications pertaining to death benefits due to stillbirth after the 22nd week of pregnancy or miscarriage after the 18th week of pregnancy, a confirmation of the event from a doctor or midwife is required. Additionally, a completed and signed application form should be included. The grant is paid to the legal heirs.


Danarbaetur umsoknarform.pdf

The Fund provides support for cases of work-related trauma or unexpected termination of employment.

The Fund provides grants to its members to seek assistance for dealing with work-related trauma or the challenges resulting from unexpected or difficult termination of employment. This support covers treatment by certified healthcare professionals and is arranged at the request of a union representative or the union itself. The grant covers up to eight sessions with a professional.

Work-related trauma or unexpected termination of employment.

Fund members are eligible to receive a grant for medical treatment abroad.

The Fund provides grants for travel abroad due to medical reasons, particularly in cases of serious illness affecting a Fund member, their spouse, or child when such medical treatment is not covered by the National Insurance.

Under exceptional circumstances, such as instances where the costs are notably high, exceeding ISK 150,000, and are incurred due to illness or accidents affecting Fund members, the Fund's Board has the authority to award an allowance of up to ISK 150,000 within a 12-month period. An amount equivalent to 30% of the eligible costs is disbursed.

Grants are not provided for expenses related to medications or other health costs that are eligible for the Icelandic Health Insurance cost-sharing program. This includes operations or treatments that are available both in private clinics and the general healthcare system. Additionally, costs associated with cosmetic procedures are not covered.

Grants are also not extended to expenses that fall within the purview of other provisions outlined in these allocation rules, except for those covered under Article 6. Any repayments under Article 6 are subtracted from eligible costs. The Fund's board evaluates each case to determine if it falls within the purview of the provision.

Fund members are entitled to receive a sickness per diem allowance for periods of unpaid absence from work. This allowance amounts to 80% of the basic payments earned during the four months preceding their inability to work.

Fund members receive a grant for the expenses of a trip abroad to collect a child for adoption.

Each Fund member is eligible for a grant of ISK 170,000 to cover the expenses of a trip abroad to collect a child for adoption. 

Withholding tax is deducted from the grant amount.

Questions regarding sickness per diem allowance

FAQ on the Public Sector Relief Fund's sickness per diem allowance

FAQ on Private Sector Relief Fund's sickness per diem allowance

Members of the Public Sector Relief Fund have the option to apply for sickness benefits to cover temporary loss of earnings resulting from the inability to work due to sickness or accidents.

The Fund is dedicated to BHM members working in the public sector, including government and municipalities. The Fund provides a range of support to its members. For instance, it assists in managing income loss due to unpaid leave resulting from illness and accidents, while also offering backing for rehabilitation and various preventative measures.

The Public Sector Relief Fund

Assistance and advice

Physical activity

Cancer screening

Physical and mental treatment

Hearing aids

A heart disease risk assessment

Maternity or paternity grant

In vitro fertilisation treatment

Stay at a rehabilitation clinic

Death benefits

Work-related trauma or unexpected termination of employment.

Travel grant due to a serious illness

Other health costs

Sickness Per Diem Allowance

Adoption grant