Cuts to Childbirth Leave Fund Proposed Skip to content

Cuts to Childbirth Leave Fund Proposed

In a bill for the new state budget it is proposed that contributions to the Childbirth Leave Fund be cut by ISK 932 million (USD 8.2 million, EUR 6 million).

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Photo by Páll Stefánsson.

A report accompanying the bill explains that the cut will be made with “special restraint measures which can include shortening of the right for childbirth leave, the lowering of maximum payments or decrease of the percentage of payment of calculated benefits,” mbl.is reports.

In the past months the maximum payments from the Childbirth Leave Fund have dropped from ISK 535,700 to ISK 300,000 (USD 4,800 to 2,700, EUR 3,500 to 1,900) per month.

Leó Örn Thorleifsson, director of the Childbirth Leave Fund, said further cuts might have an impact on the decision of fathers to take childbirth leave.

“Especially given the current situation, the increase of loans, growing unemployment and such. Not everyone can afford cuts to their salaries,” Thorleifsson said.

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