The Parental Benefit Fund, Barsilskipanin, is a joint system for employees and employers in the Faroe Islands. The purpose of Barsilsskipanin is to make it financially possible for children and parents to be together during the first period of the child's life.
Everyone, between the ages of 16 and 66, and with full tax liability in the Faroe Islands must pay a percentage of their A-income to Barsilsskipanin. The Faroese Parliament determines how much that contribution should amount to. It is currently set at 0.71%. Those who do not have an A-income, such as the self-employed, must take out insurance to qualify for parental benefits.
To be eligible to receive parental benefits, you must:
- not be working because of pregnancy, childbirth or adoption,look after the child during the parental leave period,
- live and have full tax liability in the Faroe Islands,
- either have had an A-income (income taxed at source) in the 12 months before the start of parental leave,
- or have had a B-income and have taken out insurance for parental benefits.
Don't have an A-income?
If you are self-employed, earn B-income (income where tax is not deducted at the source, e.g. income earned as a freelancer or if your employer is foreign) or are a Nordic citizen and employed under the FAS-agreement, you will have to take out a parental insurance policy in order to qualify for parental benefits. The insurance premium for self-employed and B-wage earners is 500 DKK, annually, and you must have been covered for at least one year before you can receive any payments.
You can read more about this on Barsilsskipanin's website under quick links, where you can also find the relevant application forms and insurance forms.
Are you an employer?
Click "Parental benefits - employers" under quick links and read more about your options in Barsilsskipanin.
Mothers are eligible to receive maternity allowance from the day there are 4 weeks left until the due date, or 8 weeks if recommended by a doctor. After the birth, parents are entitled to parental benefits for a total of 46 weeks. Of those weeks, 14 are reserved for the mother, 4 for the father and the remaining 28 weeks the parents can divide between them. The mother's 14 weeks and the father's 4 weeks may be taken at the same time, however, after the 14th week after childbirth only one parent may be on parental leave at the time.
If you are a single parent, you are entitled to all the parental leave and pay yourself, including the four weeks otherwise reserved for the fathers.
Multiple births (such as twins)
Parents are entitled to an additional 4 weeks in the event of multiple births, bringing the total to 50 weeks.
Babies born before week 32 of the pregnancy are considered premature. Parents of premature babies are entitled to parental allowance for altogether 54 weeks after childbirth.
Parents who adopt a child are entitled to parental allowance for a total of 50 weeks after placement of the child. Furthermore, both parents are entitled to parental allowance during the 4 weeks preceding the child’s arrival.
The allowance from Barsilsskipanin is based on your monthly average A-income over the last 12 months before the leave. However, it cannot be more than DKK 25,000 per month.
Parental allowance is paid monthly in arrears and should be expected on the fourth workday of the month.
You apply for parental benefits by sending an application to Barsilsskipanin. Find all the relevant application forms and information on how to apply on Barsilsskipanin's website in the links to the right.
The application must be submitted to Barsilsskipanin no later than twelve months after the date of birth/adoption.