Family benefits on the Faroe Islands

Daily allowance at childbirth

Compensation for loss of earnings is paid in connection with birth. The size of the allowance depends on the previous income. A prerequisite for receiving the allowance is that the person concerned is linked to the labour market as a wage earner or self-employed person, or that the person concerned is receiving unemployment daily allowance. Other people receive means-tested social help. Daily allowance at childbirth is paid for a maximum of 26 weeks of which 4-8 weeks may be paid prior to the actual birth. A corresponding allowance is granted in the case of adoption.

For more information concerning pregnancy benefit contact Barsilsskipanin.

Child allowance

Child allowance is paid to all children below the age of 18 and who live on the Faroe Islands. The allowance is tax-free and independent of the parents’ income and is paid as a tax deduction. The allowance is initially paid to the mother. Since the child allowance is paid partly by the local authority, the size of the benefit varies by a small amount. For example a family in Tórshavn received 10.500 kroner per child per annum in 2007.

For more information on child allowance contact your municipality.