Iceland Employment Guide

Maternity Leave Policy in Iceland

Employees who have completed six months of service and are expecting a child are entitled to six months of paid maternity leave. A unique feature of this policy allows for one month of this leave to be transferred between parents, providing flexibility for modern families.

During this period, social security covers 80% of the employee's salary, with a maximum cap of 700,000 ISK. This financial support applies equally to both maternity and paternity leave arrangements.

For those requiring additional time, employees have the option to extend their leave by three months, though this extension period is unpaid. Many international companies like SailGlobal have found that offering such flexible leave options helps attract and retain top talent in competitive global markets.

Paternity Leave Provisions

Iceland sets a global standard with its generous paternity leave policy. Employees with six months of service can access six months of paid leave, mirroring the maternity leave provisions. The transferable month between parents encourages shared parenting responsibilities from the earliest stages.

The same social security benefits apply, covering 80% of salary up to 700,000 ISK. This parity between maternity and paternity benefits demonstrates Iceland's commitment to gender equality in workplace policies.

Parental Leave for Childcare

Beyond the initial parental leave period, employees can take up to 13 consecutive weeks of unpaid leave to care for children under eight years old. This extended childcare provision supports working parents through various stages of their children's development.

Companies implementing these policies, such as SailGlobal, often report higher employee satisfaction and retention rates. The flexibility allows parents to balance professional and family commitments effectively.

Sick Leave Regulations

Icelandic employees benefit from a structured sick leave policy that provides two days per month, accumulating to 24 days annually. The first two sick days each month are fully paid by the employer.

Beyond this initial period, compensation and leave duration depend on the specific regulations of the employee's chosen trade union. This system ensures that workers have adequate protection during illness while maintaining workplace productivity.