Administration concerning matters of maternity/paternity leave and parental leave

According to the Act on maternity/paternity leave and parental leave No. 144/2020, matters concerning maternity/paternity leave and parental leave pertain to the administration of the Minister of Social Affairs and Labour.

The Maternity/Paternity Leave Fund shall be managed by The Directorate of Labour, which is to handle the accounts and the day-to-day operations of the fund on behalf of the Minister of Social Affairs and Labour. The Maternity/Paternity Leave Fund handles payments to parents who are entitled to payments of maternity/paternity leave, as well as payments of maternity/paternity grants to parents who are studying and not participating in the labour market.

The Maternity/Paternity Leave Fund is funded by social security contributions according to legislation on social security contributions as well as interest on the fund’s deposit funds but maternity/paternity grants are funded by a contribution from the treasury. The fund’s operating cost shall be paid by its revenue. The Minister of Social Affairs and Labour shall make sure that the fund has enough available funds to fulfill its obligations and the fund annually creates a financial plan, which the minister presents to the Minister of Finance and Economic Affairs when preparing the budget.

The operations

The Maternity/Paternity Leave Fund’s main project is the management and decision making regarding payments to parents on maternity/paternity leave and payments of maternity/paternity grants to parents, as well as providing advice and information regarding parents’ entitlement to payments.

The fund also handles payments of adoption grants and provides information regarding parental leave.