Parental Leave
Written in plain language for general understanding. This is educational content, not legal advice. Based on Icelandic Acts of the Althingi, statutory instruments, and official guidance.
Icelandic National Law
What is this right?
Iceland offers one of the most generous parental leave systems in the world. Since the 2021 reform under Act No. 144/2020:
- Total leave: 12 months per family.
- Each parent: Independent entitlement to 6 months.
- Transferable: Either parent may transfer up to 6 weeks of their entitlement to the other parent.
- Non-transferable minimum: Each parent retains at least approximately 4.5 months that cannot be transferred (use-it-or-lose-it).
- Deadline: Leave must be used before the child reaches 24 months of age.
Payment: 80% of average total salary, subject to a monthly cap set by the Maternity/Paternity Leave Fund. The cap has been increasing annually — check the current amount at island.is or the Fund's website. A minimum flat-rate payment is available for parents outside the labour market.
When does it apply?
- You are a parent (biological or adoptive) who has been active on the Icelandic labour market for at least 6 months before the birth or adoption.
- Both mothers and fathers have independent, equal rights to leave.
- Parents outside the labour market receive a minimum flat-rate payment.
What should you do?
- Apply to the Maternity/Paternity Leave Fund (Fæðingarorlofssjóður) through the island.is portal.
- Give your employer at least 6 weeks' notice before starting leave.
- You may take leave in one block or split it into periods with your employer's agreement.
What should you NOT do?
- Don't assume only mothers get leave — fathers have an equal, independent entitlement.
- Don't wait too long — unused leave expires when the child turns 24 months.
- Don't let your employer pressure you into not taking leave — you are protected from penalisation for exercising your parental leave rights.
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