Parliament approves bill to reform disability pension system

Asingi tonight approved the bill proposed by Social Affairs and Labour Market Minister Guðmundar Inga Guðbrandsson on a simpler and fairer disability pension system.

This was stated in a notice Ministry of Social Affairs and Labour MarketThe changes include improved services, significant employment incentives and improved conditions through a better, simpler payment system, the Dog report said.

It also increased support for people during recovery, built collaboration between service providers and emphasised preventing people from getting stuck between different systems.

It also states that a total of 95% of disability pensioners will receive higher payments under the new system. Effective Date 1 September 2025. It is worth noting that Extensive preparation is required in advance to ensure a smooth interchange between payment systems.

Innovations of the new system

Collaboration between service providers and coordination team: Cases for individuals with complex service needs are outlined by the coordination team. Individuals are navigated between service providers and responsibilities are clear.

Medical and Rehabilitation Payments: New payment categories of medical and rehabilitation payments close gaps in today’s system. They establish a continuous payment period for people who need rehabilitation due to chronic or serious health conditions.

Disability pension in the new system: Two social security payment categories and one social assistance payment category are merged into one category: disability pension. These changes not only increase the rights of disability pension recipients, but the vast majority of people who receive disability pensions under the current law will receive higher payments under the new system.

Partial Disability Pension: The partial disability pension is an innovation designed to better ensure survival for those who can work part-time. It significantly increases support for those who are not qualified to function in the labour market but are deemed able to participate in it to some extent.

Reduced barriers: People who receive a disability pension can, under the new system, receive 100,000 ISK per month in income without having their payments reduced. People who receive a partial disability pension and work part-time can receive 350,000 ISK per month in income without having their payments reduced.

Activity grant: The activity grant helps people who are entitled to a partial disability pension while they look for work with the help of the Norwegian Labour and Employment Agency for a period of up to 24 months.

More information can be found here.