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Social Insurance Administration

Changes in disability and rehabilitation, 1st of September 2025

25th July 2024

Huld Magnúsdóttir Director General of TR was interviewed on Rás1 this morning about changes to the disability and rehabilitation pension system. In the beginning, she said, among other things, that in fact it was a case of new thinking and approach with these changes to get more people active for the benefit of them and society.

TR Hlíðasmaári 11 with logo

Huld introduced the main issues that the new law entails and it is clear that everyone who is on payments with TR and will have rights on September 1 2025 due to disability and/or rehabilitation will be transferred to the new system. TR will inform its customers well in advance of the transfer.


The main changes according to the new law and projects at TR are:
1. Changes to payment categories – so there will be a new disability pension and a new partial disability pension. Rehabilitation pension will be sickness and rehabilitation pension.
2. Amounts will change, so most will increase. Most payees will receive higher payments, but not all.
3. There are more incentives for employment than there are now, and more time is given to rehabilitation.
4. New thinking regarding payments for individuals while waiting for treatment and at the end of rehabilitation when looking for work.
5. More cooperation between service providers who carry out rehabilitation.
6. Coordination teams will be set up throughout the country.
7. An integrated expert assessment replaces the current disability assessment.
8. A service portal will be created for all service providers to facilitate cooperation and communication between them.
9. A new activity grant will be created and people will receive help with their job search.
10. Transfer of customers on September 1, 2025 to a new system and presentation of that process to them.
11. Introductions for numerous professionals before the new law enters into force.

A study of the reasons for the number of women aged 50 and over on disability
Huld was then asked in more detail about several issues such as rehabilitation, cooperation with local authorities, the number of people on disability. Following that discussion, among other things until TR is preparing a research into the reasons why women aged 50 and over are very numerous in the group of disability pensioners. In particular, it is noticeable that in the 63-66 age group, 25% of women in Iceland are on disability. The research will be carried out by the Social Sciences Institute, and the Ministry of Social Affairs and Labor Market, the Welfare Watch and the Labor Inspectorate will also participate in the research.


Link to an interview with the CEO of TR this morning on ruv
Here is a link to the interview with the CEO of TR this morning about the changes to the disability and rehabilitation pension system that will take effect on September 1, 2025. The interview starts at minute 53.15.