Barnabætur — Child Benefit

Means-tested benefit paid by Skatturinn (Tax authority):

• Family with 1 child: Income ≤ ISK 5.76M/year: ISK 391,100/year ; Progressive regression to 0 for income > ISK 14M/year
• Family with 2+ children: higher rate per additional child
• Bonus for child < 7: +ISK 146,800/year
• Single-parent bonus: higher scale + higher cap
• Quarterly payment via tax system

Fæðingarorlof — Parental leave (2021 reform)

One of the world’s most equal after the 2021 reform:

• 12 months total (6 months reserved per parent — non-transferable)
• Benefit: 80% of average salary over previous 12 months
• Cap: ~ISK 600,000/month
• Floor: ~ISK 218,000/month
• Paid by Fæðingarorlofssjóður (Parental Leave Fund)
• Usable until child turns 24 months
• Flexible mode (up to 50% of time)

Mæðralaun — Maternity grant (housewives)

For women without employment who cannot claim Fæðingarorlof:

• ~ISK 218,000/month for 6 months
• Paid by Tryggingastofnun
• Stackable with Barnabætur

Húsnæðisbætur — Family housing benefit

Housing allowance modulated by family composition:

• Family with 1 child: up to ISK 65,000/month
• Family with 2 children: up to ISK 79,000/month
• Family with 3+ children: up to ISK 92,000/month
• Conditions: income < cap + owner or tenant

Leikskóli — Public nurseries

Dense network of municipal nurseries (Leikskóli) for 1–6:

• Modest fees: ISK 25,000–40,000/month (5–15% of real cost)
• Reykjavík: free from 2nd child in nursery
• Place guaranteed from age 12 months
• Includes meals (modest additional fees)
• Pre-school compulsory from age 6 (free)

Námsstyrkur — Student grant

Student grants via Menntasjóður námsmanna (LÍN):

• Monthly cap: ~ISK 250,000/month (living away from parents)
• Conditions: attendance + academic progression
• Combinable with part-time employment

Official sources

• Skatturinn — Barnabætur
• Fæðingarorlofssjóður