On July 2nd, Inga Sæland, Minister of Social Affairs and Housing, signed two regulations regarding increases in minimum payments for parental leave and bereavement leave. The changes apply to all parents who have unused rights within the parental leave system as of July 1, 2025, regardless of when children are born, adopted, or taken into permanent foster care. Payments according to the new amounts will be implemented at the turn of July/August.

The minimum payment for 25-49% employment rate will be 197,441 ISK per month.

The minimum payment for 50-100% employment rate will be 262,061 ISK per month.

The birth grant for those outside the labor market or working less than 25% will be 131,260 ISK per month.

The birth grant for full-time students will be 262,061 ISK per month.