Unemployment

The Faroese Unemployment Insurance fund (ALS) provides unemployment benefits to employees who are dismissed and have the right to unemployment benefits. All working persons aged between 16 and 67.5 are compulsory members of the ALS fund.

Unemployment benefits are based on the wages received over the last 12 months prior to becoming unemployed. Nordic citizens may have the period during which they have contributed to an unemployment insurance in another Nordic country transferred to the Faroese Unemployment Fund. 

Non Nordic citizens with a temporary work permit in the Faroe Islands are not entitled to unemployment benefits from the Faroese Unemployment Scheme.

A fee for the Unemployment Insurance Scheme is automatically withheld by the tax system from all wages paid to registered residents in the Faroe Islands. Foreign citizens with a temporary work permit can apply for assemption from paying this fee.

Unemployment benefits are 80 per cent of the average wages received during the last 12 months prior to becoming unemployed with a maximum of DKK 18,500 per month. A person receiving unemployment benefits must be available for any kind of work

Foreign employees who are dismissed from their job and do not have the right to benefits from ALS, may be entitled to temporary public assistance from the Department of Social Services.