Having a Child in Iceland

Parental Leave

Both parents are entitled to parental benefits, provided that they have been active on the labour market for six consecutive months.

Parents are entitled to paid leave if they have been active on the labour market for six consecutive months before the child’s date of birth or the date on which a child enters the home in the case of adoption or permanent foster care. This means being in at least 25% employment or actively searching for a job while on unemployment benefits. The amount paid depends on their status on the labour market. More information on payments can be found on the website of the Directorate of Labour. In addition, parents can also take temporary unpaid parental leave until the child reaches 8 years of age.

You must apply for payments from the maternity/paternity leave fund on the website of the Directorate of Labour at least six weeks before the expected date of birth. Your employer must be notified of maternity/paternity leave at least eight weeks before the expected date of birth.

Parents studying full-time and parents not participating in the labour market or in a part-time employment below 25% can apply for maternity/paternity grant. Applications need to be submitted at least three weeks before the expected date of birth.

Pregnant women and employees on maternity/paternity leave and/or parental leave may not be dismissed from their job unless there are valid and justified reasons to do so.

 Prenatal Care

The objective of prenatal care as administered by the healthcare centers in Iceland is to support the health of pregnant people and fetuses, offer guidance and address any high-risk factors.

Consultations and exams are offered from the beginning of pregnancy thorough birth. Your first consultation with a midwife generally happens over the phone soon after the pregnancy is confirmed. At that time time you'll make an appointment for the first exam between the 8th and 12th weeks of pregnancy. The number of prenatal exams depends on personal circumstances but are generally between 7-10 in number. Between exams you'll have access to phone consultations with a midwife.

Costs for Prenatal Services

During pregnancy and after birth the following services are offered at no charge:

• Prenatal care at a local healthcare center

• Ultrasound at 20 weeks

• Home visits from midwife during first weeks after birth

• Infant care at a local healthcare center

Expectant parents are offered the following optional services for a fee:

• Early ultrasound

• Ultrasound at 11-14 weeks

Infant Care

Infant care is provided for all parents at no cost.

The objective of infant and early childhood care is to support the health, wellbeing and development of young children with a schedule of examinations as well as providing their families with support and guidance on matters of children's health. Childhood development is monitored from birth until children begin primary school, with an emphasis on supporting the family.

If a child exhibits any abnormalities, the parents are welcome to contact the nursing staff at infant and early childhood care outside the regular appointments.

 Child Allowance

 The child allowance is a calculated amount paid automatically to parents resident in Iceland for dependent up to 18 years of age. To be eligible for the child allowance, you must be resident in Iceland and be subject to unlimited tax liability in the country.

The amount of the child allowance is determined by factors like parent income, marital status and number of children. There is no need to apply for the allowance. If the parents are no longer together, the allowance is paid to the parent who shares a registered legal domicile with the child. The child allowance is not counted as income and is not taxed.

The child allowance is paid out four time a year:

• February 1

• May 1

• June 1

• October 1

The first two payments are based on estimated income. The last two are based on income according to the parents' tax return(s).

More information on the child allowance and how it is calculated.

More information on child allowance amounts for 2020 and decreases due to income.