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.

Allocation Rules STBHM 30.6.2025.pdf

New allocation rules for Styrktarsjóður BHM (Public Sector Relief fund) have taken effect as of 1. September 2025. We are in the process o translating and updating information in English. Meanwhile English speaking members are kindly directed to the latest information in the Icelandic version.

New allocation rules for Styrktarsjóður

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 maximum grant of ISK 60,000 for preventive measures and treatments

Reimbursement for out-of-pocket expenses is up to ISK 60,000 in each 12-month period for the following items:

Treatment by licensed healthcare professionals within their respective professions, e.g. social work, nursing care, occupational therapy, chiropractic, nutritional counseling, psychological services, medical massage, and physiotherapy (see the Directorate of Health’s register of licensed healthcare professions for more details). Courses and medical expenses are not subsidized.

Services provided by other professionals with formal education in family therapy or art therapy from a recognized university. Courses are not subsidized.

Equipment – only for eyeglasses, hearing aids, travel CPAP machines, and custom-made/ specially fitted orthotic inserts from a certified orthotist or medical shoemaker.

Cancer screening, bone density measurement, and cardiovascular risk assessment.

Health retreats at the NLFI Health Clinic upon a doctor’s recommendation.

Stays for alcohol and/or substance abuse treatment within Iceland.

Courses and medical expenses are generally not subsidized.

Withholding tax is deducted from the grant.

Fund members receive a maximum grant of ISK 200,000 for the birth of each child. 

Both parents are eligible to receive a grant of ISK 200,000 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.

The right to maternity or paternity grant is dependent on having previously paid contributions to the fund for a total of 6 months, of which 3 months must be continuous, prior to the child's birth.

The grant amount is subject to withholding tax deduction.

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.

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 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. 

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.

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 (Styrktarsjóður BHM) 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.

You can apply for a grant to the BHM Public Sector Relief Fund through My BHM (Mínar síður). The Fund's allocation rules generally require that premium fees have been paid for a Fund member for a minimum of 6 months, including 3 consecutive months, prior to the event that triggers the grant application, loss of income, or covered expenses. However, exceptions to this rule can be made in accordance with the specific guidelines outlined in the rules.

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

The Public Sector Relief Fund

New allocation rules for Styrktarsjóður

Physical activity

Physical and mental treatment

Maternity or paternity grant

In vitro fertilisation treatment

Death benefits

Work-related trauma or unexpected termination of employment.

Adoption grant

Sickness Per Diem Allowance

The Public Sect­or Rel­ief Fund

New allocation rules for Styrktarsjóður

Physical activity

Physical and mental treatment

Maternity or paternity grant

In vitro fertilisation treatment

Death benefits

Work-related trauma or unexpected termination of employment.

Adoption grant

Sickness Per Diem Allowance

The Public Sector Relief Fund