Parental benefits - information for employers

The parental leave fund, Barsisskipanin, is a joint system for employees and employers in the Faroe Islands. The aim of this system is to make it financially possible for children and parents to be together during the first period of a child’s life.

Employers' contribution to parental benefits

Employers' contribution to parental allowance amounts to 0.71% of their A-income. This is paid by all recipients of A-income. An additional 0.1% is paid to the occupational disease fund, bringing the amount claimed by the parental leave system to 0.81%.
You will be billed on a monthly basis. As an employer, you can set up a direct debit through

If you pay salary to your employee during their parental leave

If you pay salary (A-income) to your employee during their parental leave, you are entitled to reimbursement from Barsilsskipanin. The allowance from Barsilsskipanin is based on the employee's monthly average A-income over the last 12 months before the leave. However, it cannot be more than DKK 25,000 per month. 
More information regarding your rights is available on Barsilsskipanin's website under quick links.

Parental insurance for self-employed

Employers and other self-employed, or B-wage earners, must take out a parental insurance policy in order to qualify for parental benefits. The insurance premium is DKK 500, annually, and the insurance must have been valid for at least one year before any payment can be made.

Read more about this on Barsilsskipanin's website under quick links, where you will also find the insurance terms and application forms.

How to apply for parental benefits

As an employer, you apply for parental benefits by sending us one application per employee who is salaried during their parental leave. Application forms can be found on Barsilsskipanin's website. 

Application deadline

The application must be submitted to Barsilsskipanin no later than six months after the date of birth/adoption.