All Things Iceland

I Just Finished 8 Months of Maternity Leave in Iceland. Here’s What It Was Really Like.

July 23, 2026·23 min
Episode Description from the Publisher

After eight months of maternity leave in Iceland, I’m finally back to work. Looking back, I can honestly say that this experience has given me an entirely new appreciation for Iceland’s parental leave system. Before becoming a mom, I had so many questions. Would I qualify since I own my own business? How would my payments be calculated? How much time would I actually get with Eva? And what would maternity leave even feel like? In this episode/blog, I’m sharing both how parental leave works in Iceland and my personal experience navigating it as a first-time mom. https://youtu.be/BzbZjLI2-xo How Parental Leave Works in Iceland One of the things I love most about Iceland’s parental leave system is that it’s designed for both parents. Each parent is entitled to six months of parental leave, giving families a total of twelve months together. Parents also have the option to transfer up to six weeks of their leave to one another, while still encouraging both parents to spend meaningful time bonding with their child. Another aspect I really appreciate is the flexibility. Parents can spread their leave out and use it until the child turns two years old. In our family, I decided to take my leave all at once, while Halli took the first three months immediately after Eva was born. He still has additional leave remaining that he plans to use before she turns two. For me, this flexibility is one of the strongest parts of Iceland’s system because every family’s needs are different. My Experience Taking Leave as a Self-Employed Business Owner One of my biggest concerns before having Eva was whether I would qualify for parental leave since I own my own company. Even though I’m the only employee at All Things Iceland, I still pay all of the required employer contributions, including payments into Iceland’s parental leave fund, known as the Fæðingarorlofssjóður. One important difference for self-employed people is how parental leave payments are calculated. Instead of looking at recent monthly wages like traditional employees, self-employed parents have their payments calculated using their average income from the previous tax year. It was fascinating learning how that process worked, and thankfully everything went smoothly for me. Even so, it made me realize how important it is for self-employed people to understand these rules before planning parental leave. Why I Chose Eight Months Instead of Six Although I technically had six months of paid leave, I decided to spread those payments across eight months. That meant receiving smaller monthly payments while allowing me to stay home with Eva for longer. For me, six months simply didn’t feel like enough. Maybe it was because I wanted to experience more of Iceland’s brighter spring and summer months with her, or maybe I simply wasn’t ready to jump back into work. Whatever the reason, I’m incredibly grateful that Iceland gave me the flexibility to make that decision. Understanding the Parental Leave Payments in Iceland Parental leave in Iceland isn’t intended to fully replace a person’s salary. Instead, the goal is to provide financial support so parents can spend meaningful time with

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