Cutback on Payments from Childbirth Leave Fund Skip to content

Cutback on Payments from Childbirth Leave Fund

If the planned reduction of the maximum payment from the Childbirth Leave Fund will be carried through, from ISK 350,000 to 300,000 (USD 2,800 to 2,400, EUR 1,900 to 1,600) per month, the maximum payment will have dropped by 44 percent in one year.

Photo by Páll Stefánsson.

These changes are being proposed in a new bill by Minister of Social Affairs Árni Páll Árnason. According to RÚV, the bill also includes that parents who earn more than ISK 200,000 (USD 1,600, EUR 1,100) per month will receive 75 percent of their wages during parental leave instead of the current 80 percent.

Director of the Childbirth Leave Fund Leó Örn Thorleifsson told Morgunbladid that he is concerned about this development. Chairpersons of associations on the employment market agree, saying this development is backwards in terms of equality.

Employees of the Childbirth Leave Fund have noticed that fathers increasingly postpone taking their parental leave because they are afraid to or cannot afford to stop working to be with their newborns.

Iceland is currently experiencing a baby boom.

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