On 1 January 2022, the Icelandic law on grief leave, No. 77/2022, will take effect. The aim of the law is to ensure that parents have the flexibility to process grief in the wake of a child loss and, where appropriate, to support surviving siblings in adapting to changed circumstances. The law is also intended to increase the likelihood that parents can have a successful return to the labour market and be able to participate actively in society again in the wake of a child loss. The law covers the rights of parents who have been in continuous employment on the domestic labour market to grief leave as well as payments to cover their loss of income during the period of the grief leave. The law also covers the rights of parents who are out of the labour market or in less than 25% employment and parents who are in full education to grief support. The parent's right to grief leave or grief support is for up to six months from the time of the child's loss and expires 24 months later.

The right to payments for stillbirth or miscarriage will be part of the Act on Maternity and Parental Leave No. 77/2022 from January 1st, but was previously part of the Act on Parental Leave. The parent's right for stillbirth is up to three months from the date of stillbirth after 22 weeks of pregnancy and two months in case of miscarriage after 18 weeks of pregnancy. The right expires 24 months after stillbirth or miscarriage.

The maximum payment in a grief leave due to a child loss will be ISK 600,000 per month. It is also assumed that parents can exercise their right to grief leave in conjunction with a reduced employment rate and also over longer periods of time, as the results of research show the importance of individuals who suffer trauma in life to maintain contact with the labour market as they trust each time.

From January 1st, you can apply for a grief leave or a grief grant on the website of the Maternity/Paternity Leave Fund.