Salaries

Working in Europe | Taxation/salaries | Faroe Islands

Salaries are set according to negotiated settlements between the employer and the relevant trade union.

Salaries are based on seniority and competence. A special Doctoral or Professorial addition is given, if the position requires such competence.

Normal working hours are 39 hours per week. Work in excess of normal working hours is compensated with an overtime supplement.

A fixed percent of the monthly salary is paid by the employer to a private retirement pension plan set up by the relevant trade union with the Faroese Life Assurance Company.

Persons moving to the Faroe Islands to work for a limited period can apply to the Customs and Tax Office for exception from paying a percentage of their salary to a Faroese retirement pension plan.