Application for compensation from the state treasury following a Supreme court judgment

Who may be entitled to compensation?

• Parents who received payments from the Maternity Leave Fund between September 2022 and June 2025, inclusive.

• Parents who worked for less than four months in the domestic labour market during the 12-month reference period used to calculate their average total earnings.

• Parents who worked in another EEA (European Economic Area) country during the reference period.

What is the reference period?

- When calculating maternity leave benefits, a 12-month reference period in the labour market is used. Read more here.

Why are parents who received payments before or after the period from September 2022 to June 2025 not entitled to compensation?

• The Maternity and Parental Leave Act was amended on 1 July 2025. The amendment allows a parent's employment history up to the month of the child's birth to be taken into account when calculating average total earnings if the parent worked for less than four months in the domestic labour market during the reference period but worked partly or entirely in another EEA country during the same period.

• Under Act No. 150/2007 on the limitation period for claims, general claims and compensation claims become time-barred after four years.

Who decides whether a parent is entitled to compensation?

- The Directorate of Labour receives the applications. Once the Directorate has obtained the required documentation, the information is forwarded to the State Attorney (Ríkislögmaður), who decides whether compensation should be paid on behalf of the Icelandic state.