Paid Parental Leave in Iceland

Abstract

Abstract In May 2000 the Icelandic parliament unanimously adopted a new law on parental leave. The law meant radical changes in the situation of parents. Both parents got the right to three months of non-transferable leave with 80 per cent of salary. For years to come no other country offered fathers this long leave with similar economic compensation. In addition to the individual rights, parents had three months that they could divide as they liked. The stated goals of the law were to ensure that children received care from both parents and to make it easier for men and women to combine paid work and family life. We discuss what led to this law and show why it can be called a success. We show the main players, what the situation was like in Iceland when the law was adopted, and discuss changes that have been made to the law. Repeated surveys among first-time parents as well as statistics from the Parental Leave Fund show huge changes. From day one the great majority of fathers have made use of their right and they have greatly increased their participation in care for their children. We can safely state that the goal of ensuring that children receive care from both parents has been achieved.