Surveillance, payment reductions and incompatible rights

A parent who has entered the labour market before the birth of a child, primary adoption or permanent foster care and is entitled to a maternity/paternity leave but receives payments of a maternity/paternity grant, may suffer loss of income if the maternity/paternity grant only covers part of the loss of income. In these instances the employer may be permitted to compensate for the loss of income which the maternity/paternity grant will not cover.


Surveillance

A monthly inspection is conducted by comparing information on payments of maternity/paternity grants with records from the tax authorities.

Payment reductions

  • A parent may be entitled to be compensated for the loss of income which a payment of a maternity/paternity grant will not cover, and in such instances the employer is permitted to compensate for the difference of the payment of a maternity/paternity grant and average wages for the last 2 months prior to the month when the child is born, or the month when the child entered the home for primary adoption or permanent foster care.
  • Payments from an employer intended for a period other than when the parent receives payments of a maternity paternity grant will not reduce payments of the grant.

Incompatible rights

  • Parents who receive payments from The Unemployment Insurance Fund according to the legislation on Unemployment Insurance, cannot use their entitlement to a maternity/paternity grant, payments from The Maternity/Paternity Leave Fund or parental leave for the same period.
  • Parents who receive accident per diem payments according to laws on social security accident insurance, sickness per diem payments according to legislation on health insurance, or rehabilitation pension according to laws on social assistance, cannot use their entitlement to a maternity/paternity grant or payments from The Maternity/Paternity Leave Fund for the same period. 
  • Parents who receive payments according to legislation on payments to parents of chronically ill or severely disabled children, cannot use their entitlement to a maternity/paternity grant or payments from The Maternity/Paternity Leave Fund for the same period.
  • Parents who receive vacation pay or an employment termination payment cannot use their entitlement to a maternity/paternity grant or payments from The Maternity/Paternity Leave Fund for the same time period as these payments.
  • Payments from other countries due to the same birth and for the same period will be deducted from payments of a maternity/paternity grant and payments from The Maternity/Paternity Leave Fund.

Correction of payments

Parents receiving overpayments

  • If parents have received higher payments then they were entitled to according to the assessment of the tax authorities or for other reasons, they must reimburse the amount that was overpaid, plus a 15% surcharge. The surcharge shall be revoked if parents can argue that they are not to blame for the insufficiencies which lead to The Directorate of Labour’s decision.

The importance of reporting changes

  • It is important that a parent informs The Maternity/Paternity Leave Fund about everything which could result in overpayments, including changes regarding maternity/paternity grant or income.

Restoring entitlements

  • A parent may be entitled to a maternity/paternity grant after reimbursement if other conditions are fulfilled, such as when the right to a maternity/paternity grant has not been revoked due to the age of the child or the time which has passed from when the child entered the home for primary adoption or permanent foster care.

Var efnið hjálplegt?

Þakka þér fyrir þitt álit.
Það væri gagnlegt að vita meira um hvað þér finnst.

Hvað er helst að?

Hunang Hunang logo

Þessi vefur notar vefkökur (e. cookies).

Sjá nánar í persónuverndarstefnu Vinnumálastofnunar.

Hi, Vinný here! How can I assist you?
Vinný snjallmenni