Sickness benefits

Sickness benefits are provided during periods of absence from work, corresponding to 80% of the basic salary payments made over the preceding 4 months before the inability to work. However, this amount never exceeds ISK 713,000 and is provided for up to 4 months. A condition is that the member has exhausted his rights to sickness pay under from his employer under the relevant collective agreement.

The payments from the Fund come in addition to the sickness allowance provided by the Icelandic Health Insurance. The total taxable income must not surpass the income loss caused by illness or accident. All taxable payments from other sources, such as the State Social Administration (TR) or occupational pension funds, exceeding 20% of the basis for income in the last 4 months, are fully deducted from the benefits provided by the fund.

The eligibility for benefits considers the fees paid to the fund in the preceding 4 months. For instance, an applicant with fees paid for 3 months qualifies for sickness benefits for 3 months. These benefits are paid retroactively for a maximum of 3 months from the date of application.

Members can reapply for benefits after 12 months of premium fees following the conclusion of the previous allowance period. During this time, they acquire half the eligibility for sickness per diem allowance, and after 24 months, they regain full eligibility.

Other reasons for absence

In addition to a Fund member's own sickness or accident, the following absence from work due to:

• Illness of a Fund member's child for up to 4 months.
• Illness and/or accident suffered by a Fund member during maternity/paternity leave: If a parent is unable to take care of their child due to illness and/or an accident suffered during maternity/paternity leave, the Fund will cover up to 6 weeks. No payment is made for the first 10 days of illness. This is on the condition that the parent does not accept payments from the Maternity/Paternity Leave Fund.
• Illness of a Fund member’s spouse due to absence from work for up to 2 months. No payment is made for the first 10 days of illness.
• Serious illness of other family members for up to 2 working weeks. No payment is made for the first 10 days of illness.
• Death of a family member for up to 2 working weeks.
• Artificial insemination for up to 6 weeks.
• Treatment of alcoholism and drug addiction for up to 6 weeks.
• Medical examinations that are precursors to further medical treatment, organ donation, and treatments considered necessary by a doctor.

Fund members who receive a rehabilitation pension from TR retain their rights to grants other than sickness per diem allowance.

Fund members' rights in other BHM Funds during sickness per diem allowance period

BHM Vocational Training Fund: Fund members maintain their full rights.

Career Development Centre: Fund members maintain their full rights.

BHM Vacation Fund: Fund members who had full rights in the Vacation Fund before sickness per diem payments started maintain their full rights during the sickness per diem allowance period.

Applications

Applications are submitted through My BHM (Mínar Síður) and there you can get information about the necessary documents needed with your application.