Application for parental leave
On this page
What can affect payments?
General information about what can affect payments
The following can affect payments from the Maternity and Paternity Leave Fund:
Payments from employers.
Changes in income.
Changes to the planned taking of parental leave.
Other payments
Parents cannot receive maternity and paternity leave payments and the following at the same time:
Unemployment benefits.
Rehabilitation pension.
Per diem payments from the Social Insurance Administration.
Healthcare allowance from the Social Insurance Administration.
Parental allowance for chronically ill or severely disabled children.
Paid leave or severance pay.
Payments from other countries for the same births and for the same period. These payments are deducted.
Payments are too high
Information on payments to parents is compared with information from Revenue and Customs monthly. If a parent receives payments that are too high, the amount that was overpaid must be paid back with a 15% levy.
Letter by email
If there is a discrepancy between the payment plan and actual income, the parent will be sent a letter by email. Explanation for the discrepancy is requested. The parent has 15 days to submit explanations and data.
What can I do to prevent payments becoming too high?
It is important to inform the Leave Fund of any changes in income and planned taking of maternity and paternity leave. Parents are encouraged to contact the Parental Leave Fund if they have any questions.
Email: faedingarorlofssjodur@vmst.is
Call: 515 4800 and select 2 for contact with the Maternity and Paternity Leave Fund.
Paying back
The amount can be deposited at: Account number: 0111-26-1800, kennitala: 450101-3380.
15% levy cancelled
Parents can claim that overpayment can not be blamed on them. The Directorate of Labour will assess whether the 15% levy should be cancelled after a claim is received.
Receiving payments that are too low
Reasons might be that:
Calculations were wrong.
The Welfare Appeals Committee ruled that a parent who was refused payments was entitled to them, or that payments should have been higher.
Amount paid
The Leave Fund pays the amount that was underpaid, together with interest, for the period in which the funds were in the Fund's possession. Interest rates are in accordance with the Central Bank's decisions. If the reason for the underpayment was a lack of information from the applicant, the interest rate is cancelled.
Appeals
If there is a dispute about the conclusion of the Leave Fund, it can be referred to The Welfare Appeals Committee.
Service provider
Directorate of Labour