Disability Pensions Rise Sharply in Iceland

2026-02-10 - 10:27

The share of working-age people in Iceland receiving disability or rehabilitation pensions has increased markedly over the past quarter-century. The latest information, published in an article by RÚV, is based on new research examining long-term trends in diagnoses and labour market participation. What's the Story? Disability and rehabilitation pension recipients in Iceland increased from 6.3% in 2000 to 9.4% in 2024, according to a study by the University of Iceland The largest rise was recorded in diagnoses including depression, anxiety, chronic pain, ADHD and autism Women accounted for 61% of recipients in 2025, with higher rates among single mothers aged 30 to 39 Landspítali University Hospital. Credit: Facebook Mental health impact A study by Oddur Ingimarsson, a psychiatrist and lecturer at the University of Iceland, shows that the proportion of people in the labour market receiving such pensions rose from 6.3% in 2000 to 9.4% in 2024. An increase of 49%. The most significant growth was recorded in diagnoses linked to depression, anxiety, chronic pain, ADHD and autism. By January 2025, around two-thirds of pension recipients had psychiatric diagnoses, while nearly half were diagnosed with musculoskeletal conditions. The study also notes a rise in cases involving residual viral infections, stress and severe burnout. Researchers say the findings reflect broader changes in Iceland’s disease burden, with chronic and complex conditions (often associated with mental health and lifestyle factors) becoming more prevalent. The study highlights the difficulty of assessing work capacity in many cases, pointing to the complex interaction between health, social circumstances and financial incentives. One notable disparity appears among single mothers aged 30 to 39. Disability rates ranged from 25% for those with one or two children to 51% for those with four or more. Overall, women account for a higher share of disability and rehabilitation pensions than men, at 61% compared with 39% in 2025.