Parental leave for athletes
What really matters
Parental leave is not based on what you are doing when the baby is born.
It is based on what you were doing before.
They system specifically looks at:
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the last 6 months before the birth (rights).
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and previous earnings to calculate payments.
That is why planning in advance is crucial.
What you do 6-12 months before matters more Thant what you sign today
To receive best maternity leave payments, you need to make sure that:
Think backwards 6-12 months
Why is 6-12 months backwards important?
The system looks at your tax income from last 6-12 months
6 months:
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To check:
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If you have build up your rights in the system
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12 months:
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To calculate
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How much you get paid during your parental leave.
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Calculations are income / with 12 months back
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The system looks back at your income - usually over the last months before leave - to calculate what you should receive.
If your income has been stable over time, your payments will reflect that.
If there are gaps, low income periods, or missing registration - your payments can drop.
Simple example:
Good situation:
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You are working a main job and on a contract
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Income is steady
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Payments - both from main job and football - are registered every month
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You get closer to your real salary
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Risk situation:
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You are between contract
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You have gaps (even a few months)
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Income is not fully registered (often football income not registered).
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You can drop into a much lower payment category
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Sif's experience:
"I thought my contract defined what I would get.
But the system looked at my income history - and because I had a gap, I was placed much lower".
Your payments are based on your registered income in the months leading up to your leave
Payments are registered
Why does it matter to register all income ?
The system does NOT see:
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Your contract
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Promises
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Late payments
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Fifa maternity regulations or other sport related framework
The system sees:
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Registered tax-income
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and if payments have been made to:
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Tax
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Pension
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Social security contributions (tryggingagjald)
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That is why it is more important:
On how the income is registered
rather then
when you get them
Register your football income - even if it is small - it can help you with the parental leave in the future.
Be active in the labour market
What does 25% work mean?
The system says:
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You need to be at least 25% active in the labour market.
That means:
For employees
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about 25% of full-time work
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about 40-45 hours per month.
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For contractors:
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That you have income that corresponds to at least 25% of work
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That it is:
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registered
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taxed
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Important
It is not just about time
Its about:
Registered income in the system.
Example that don't work:
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You train everyday with your team
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But you don't get paid
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Then you are not active in the labour market.
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Example that works:
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You get regular payments from the club.
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They are registered in the system
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Then you are active in the labour market
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Continuous income - what does it mean?
"Continuous income" means:
That you have:
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constant income
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registered in the system with a job
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no gaps in monthly salary payments (over a period before giving birth).
Good example:
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You are on a contract from January to Desember.
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You get your monthly payments.
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The system sees stability.
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Bad example:
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Contract ends in October.
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No income in November and December
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Then a "gap" is created.
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Consequence:
The system can assess that you have:
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less rights
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lower payments
For athletes:
This is common when:
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contracts are short
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A club "takes a break" in payments (late payments, contract only paid during the competition season, etc.)
This can have direct consequences on how much you get paid from the parental leave fund (Fæðingarorlofssjóður).
Common mistakes - athletes
Athletes often face these situations:
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"I will get paid later"
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"This is just between me and the club"
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"I am training so therefore I am working"
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"The FIFA regulations protect me in this situation"
The Icelandic system does not work like that.
As athletes, avoid:
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Begin without a contract (even for a couple of months)
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Getting paid "outside the system".
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Postpone payments.
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Counting on that it will sort it self out.
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Thinking that the FIFA regulations will protect the payments.
* Important note on the FIFA maternity regulations.
They protect your contract, but if you are not fully professional - Football is your main source of income -
then the Icelandic system works differently.
If you have your income stream like this:
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A main source of income (working outside of football and that is your main income).
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Football as a secondary income
Then the Icelandic system looks at what is registered at the tax-authorities - which is often the work outside of football.
This is why it is important to register the football income as well - that gives you higher registered income with the tax-authorities.
Athlete-mothers reality
In sports:
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You often stop playing/competing before the baby is born.
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Your contract is still valid, and therefore should be paid.
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After delivery, you come back sooner than you would do to your main job.
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You probably have irregular income
The system does not take these factors into account automatically.
That is why you need to plan and organize this yourself.
What you should do
Think ahead 6-12 months
Think ahead.
Not only when you become pregnant - but 6-12 months before.
Even if it is strange to look 6-12 months ahead, it is good to plan ahead what those months can look like.
See to that the income is registered
See to that your income is correctly registered
Especially if you are a contractor
Avoid any "gaps" in your months
Try to connect your sport contracts to avoid any monthly income gaps.
Or try at least to have registered income every month.
Remember the 25% job income rule.
Ask the right questions
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How is my income registered?
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Is the social security contribution paid?
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or who pays that?
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Am I active in the system?
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Am I registered in the tax system with my income?
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All questions are valid - and no question is off limit for you.
It is your right to know.
If you are unsure, talk to specialists:
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Accountant
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The Players Union
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A specialist in that area
Real Talk
Parental leave is not only about when the baby comes.
It is how you have built up your right before.
Returning to play after childbirth
Athlete-Mothers
Athletes often want to return:
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to practice
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get in competition form
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start to compete again
That is normal - but you need to plan for it out from the Parental Leave payments.
What is the main rule when returning to play in Iceland
If you are on Parental Leave payments, then it is important to know:
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How much leave are you on (%)
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and how much you work beside it.
Example:
If you are on:
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80 % leave
Then you are allowed to:
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Work 20%
That can mean:
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Take part in trainings
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Be apart of the team trainings
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Start slowly returning to the field
But - What you need to watch out for!
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This is not only about the time spent returning back to trainings - but also about income
Main rule!
Sports income (your contract) + Parental Leave payments
can not be:
Higher that you were earning before!
What can happen if you are earning more?
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Parental Leave payments can lower
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They can be re-calculated
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You could end up having to pay back some money
Athletes complications:
In sports this can be complicated.
You can be:
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Training a lot
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but your payments are low
or
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you are getting paid
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without "working in a normal labour market"
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that is payment is correctly registered
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The system looks first and foremost on:
Your income - not your active participation
Simple example:
Good:
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80% leave
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20% pay from sports
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within limits.
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Risk:
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80% leave
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but you get full pay from club (that if your contract is a big part of your monthly income).
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which can set you over the limit.
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This is why it is important that your sport income is correctly registered into the system - just as your main job income is.
This gives you the wiggle room to come back during your leave without risking your parental leave payments.
Return to play -
Important information
Plan your return
Don't start getting paid, either "on accident or as a surprise"
Define your role and % with the club
Talk to your club or investors
How are my payments registered?
Are they inline with my working %
Really important if you have your main source of income outside of football.
If you are unsure - ask for help
Before you return to play - talk with:
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Accountant
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Specialists (ex. Fæðingarorlofssjóð - Parental leave organization)
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The Players Union