Parental leave in Iceland: how it works, what you get, and when to apply
A complete guide to fæðingarorlof — updated for 2026.
The short answer
- Each parent has an independent six-month entitlement, and up to six weeks of it can be transferred to the other parent.
- Payment is 80% of your average income before the birth, up to a monthly cap.
- You apply through Fæðingarorlofssjóður (the Maternity/Paternity Leave Fund) via island.is, not through your employer.
- Apply well before the birth — a late application delays your first payment.
Who is entitled
You're entitled to parental leave if you've worked in Iceland continuously for the six months before the child's due date, in at least 25% of a full-time position. Full-time is defined as 172 hours a month, so about 43 hours a month meets the 25% threshold. Both wage earners and the self-employed qualify.
Time spent on unemployment benefit, sickness benefit, or grief leave counts toward the six months too, so a recent job change or a period of illness doesn't automatically disqualify you.
How long each parent gets
Each parent — the one who gave birth and the other parent — has an independent entitlement of six months. That's 12 months total per child, and leave can start up to one month before the expected due date.
A single parent raising the child alone gets the full 12 months. A multiple birth — twins, triplets — adds another six months to the shared total for each additional child.
What transfers between parents, and what doesn't
Up to six weeks of your own six-month entitlement can be transferred to the other parent — so, for example, one parent could take up to seven and a half months while the other takes four and a half.
The transferable weeks come out of each parent's own six months. They are not extra time added on top of the twelve — that's a distinction worth getting right, since it changes the total.
How the payment is calculated
Your payment is 80% of your average total wages. For most employees, that average is based on the 12 months ending six months before the birth month — not your income right before the birth. If you're self-employed, it's based on your income for the full calendar year before the birth year.
The payment is capped. For children born in 2026, the maximum is 900,000 ISK a month. There is also a minimum: 262,061 ISK a month if you worked 50–100%, or 197,441 ISK a month if you worked 25–49%.
Last reviewed 2026-09-17 · Source: island.is
When and how to apply
You apply online through island.is, directly to Fæðingarorlofssjóður — not through your employer. Applying early matters: a late application delays your first payment, so most parents apply as soon as the pregnancy is confirmed, well before the one-month-before-birth window when leave can first start.
If you are self-employed, a student, or new to Iceland
Self-employed parents qualify the same way employees do, but their income calculation uses the prior calendar year instead of a rolling 12-month window.
If you moved to Iceland from elsewhere in the EEA, work you did in that country in the six months before the birth can count toward your entitlement — provided you have an employment contract confirming when your Icelandic job began, and you started working in Iceland within 10 working days of leaving your previous EEA job.
Full-time students aren't explicitly addressed in the official guidance we could confirm. If that's your situation, check your specific entitlement directly on island.is before relying on an estimate.
Taking leave part-time, and spreading it out
You don't have to take your leave in one continuous, full-time block. It's often possible to negotiate a part-time or extended arrangement with your employer, which lowers your monthly payment proportionally but stretches it over more months. Whatever arrangement you choose, the leave itself has to be used before your child turns 24 months old.
What happens after the leave ends
Parental leave is generous by international standards, but it still ends well before most children get a place in a municipal leikskóli (preschool) — admission is usually from around 18 months, and lists run on waiting order. That gap is the single most common planning problem Icelandic parents run into.
See how it's normally covered →Get your number
Estimate your own payment, based on your income and the months you plan to take.
Official sources
Vagga is a planning tool, not a government authority. Always confirm details on the official Icelandic sources below.
Vagga is an informational planning assistant. It does not replace official government, healthcare, legal, financial, or medical advice. Always confirm deadlines and requirements with the relevant Icelandic authority or professional. Learn more →
Frequently asked questions
How much of my income will I actually be paid?expand_more
Can I split my leave with my partner?expand_more
What if I'm self-employed?expand_more
I just moved to Iceland — do I qualify?expand_more
When should I apply?expand_more
Can I take leave part-time?expand_more
Is there a deadline to use the leave?expand_more
What happens when my leave ends?expand_more
Your next step
- Start my timeline
Your next step is registering for childcare, around when your leave ends. Put it in your timeline.
- See the group
Parents due the same month as you
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Read next: The gap between leave and leikskóli