The state’s expenses for child benefits will increase by ISK 2.5 billion (USD 20 million, EUR 16 million) next year and so the total funds allocated to child benefits amount to ISK 10.8 billion (USD 87 million, EUR 67 million).
The Government to Iceland agreed to the increase on Friday as suggested by Minister of Finance Oddný Harðardóttir, ruv.is reports.
Her proposal includes that additional benefits to parents for children younger than seven increase from ISK 61,191 to 100,000 (USD 493-806, EUR 282-625) per year.
The income reduction limit for single parents will be raised from ISK 1.8 to 2.4 million (USD 14,000-19,000, EUR 11,000-15,000) per year and for parents living together from ISK 3.6 to 4.8 million (USD 29,000-39,000, EUR 22,000-30,000).
Child benefits for seven-year-olds and older children will increase by ten percent.