The Paternity Leave Act in Iceland: implications for gender equality in the labour market

The Icelandic Act on Maternity/Paternity and Parental Leave (2000) introduced some major changes. The leave was extended from 6 to 9 months, and parents who were active in the labour market were paid 80% of their average salaries during the leave. The 9 months' leave was distributed so that mothers could take 3 months' leave, fathers could take 3 months' leave and the remaining 3 months could be shared by the mother or father in any manner that the parents saw fit. Using information and data from the Althingi and Statice, this article discusses the new legislation and the implications of such a policy in reducing gender inequality in the Icelandic labour market.