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Employees are entitled to at least 24 days of paid annual leave, but collective agreements may provide for more. Employees frequently take vacation time during the holiday season, which runs from May 2 to September 15.
Employees are also paid a holiday allowance, which is usually paid at the start of the vacation or on a monthly basis. The vacation pay is deposited into a separate bank account.
The following public holidays are observed in Iceland:
New Year’s Day
First Day of Summer
Icelandic Republic Day
New Year’s Eve
During the first year of employment, employees are given two sick days per month. Employees often become entitled to more sick leave as they work for an employer for longer periods of time, and collective bargaining agreements may provide for additional sick leave. If the employer requests it, the employee must notify the employer of his or her illness as soon as possible and provide a doctor's note. Employees are also entitled to paid sick leave to care for sick children under the age of 13 under many collective bargaining agreements. Employees who are unable to work because of illness may be eligible for social security benefits.
After the birth or adoption of a child, both male and female employees are entitled to five months of paid leave. They also get two additional joint months, which can be split between them or taken by only one parent if they prefer. The leave must be used before the child reaches the age of 18 months.
Employees can also take up to 13 weeks of unpaid parental leave if they have a child under the age of eight.
There is no statutory paternity leave in Iceland.
Other than the already mentioned terms regarding maternity leave in Iceland, there are no other provisions regarding parental leave.