Find your employer of record in Faroe Islands

Faroe Islands famous place - EOR World Wide
Faroe Islands - EOR World Wide

Faroe Islands

currency

Faroese Króna (DKK)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

0 to 18

Employer Tax

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Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Torshavn

Faroese Króna (DKK)

DD/MM/YY

January 1st-December 31st

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Faroe Islands famous place - EOR World Wide

Find your employer of record in Faroe Islands

Faroe Islands

currency

Faroese Króna (DKK)

Currency

Payroll_Frequency

monthly

Payroll Frequency

Employer_Tax

0 to 18

Employer Tax

Overview

Capital

Currency

Date Format

Fiscal Year

Reviews

Torshavn

Faroese Króna (DKK)

DD/MM/YY

January 1st-December 31st

0 / 5 Star (0 Reviews)

0

With 2 clicks, start your journey to Hire a contractor or remote employees in Faroe Islands without a entity set up.

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Overview

Faroese Króna (DKK)

CURRENCY

Torshavn

CAPITAL

monthly

PAYROLL FRECUENCY

15

PUBLIC HOLIDAYS

0 to 18

EMPLOYER TAXES

13TH / 14TH SALARY

The 13th Salary in this region is usual and typically given at the end of the year.

Employee and employeer taxation in Faroe Islands

Employer

Company Payroll Contributions

0% - 18%

Flat Tax



0% - 18%

Total Employment Cost

Employee

Worker Payroll Contributions

0%- 1%

0%- 0.86%

Parental Leave Fund

0%- 8%

Pension

0%- 3%

Labor Market Supplemental Pension Fund

0%- 0.7%

National Health Insurance


0% - 13.56%

Total Employee Cost



Employee Income Tax in Faroe Islands

Worker Income Tax

0%

0 – 65,000 DKK

15%

65,000 – 235,000 DKK

20%

235,000 – 330,000 DKK

25%

330,000 – 800,000 DKK

30%

Over 800,000

Faroe Islands famous place - EOR World Wide
Faroe Islands famous place - EOR World Wide
Minimum Wage in Faroe Islands
General

The minimum wage for employees in Faroe Islands is DKK 83.72 an hour. Companies hire payroll outsourcing services to provide monthly payroll for their teams.

$1885,42 Minimum Wage per month

Faroe Islands famous place - EOR World Wide

Payroll Contributions in Faroe Islands

Payroll Cycle

The payroll cycle is monthly. If businesses want to provide accurate payments, they must hire HR and payroll outsourcing services through an Employer of record in Faroe Island. 

Employee Benefit in Faroe Islands

Probation period, pay on yearly absences, national holidays, sick leaves, parental leave, and overtime compensation are examples of mandatory benefits that are statutory. Social Security benefits are also seen to be statutory benefits.

Visa and work permit in Faroe Islands

Despite being a part of Denmark's Kingdom, the Faroe Islands' internal affairs are not under Danish control, so you might need to apply for a visa. Although the Faroe Islands are not a part of the Schengen Area, Denmark is, and as a result, a Schengen visa will not be recognized for entry into the Faroe Islands.


If you come from the EU, you only need a passport or an ID card because the Faroe Islands state provides open borders for Schengen Area travelers. You need to apply for a visa if you are not a citizen of the Schengen Area. You can do it at the nearest embassy of Denmark.

VAT in Faroe Islands
Working Hours in Faroe Islands
General

In both the commercial and public sectors, the average workweek is 39 hours. With PEO services, companies can ensure that the employment laws stand.

Overtime

For all types of employment, the overtime pay is determined by subtracting the regular pay in the following manner: When business hours are from 7 to 16: 16 to 20 +35% 20 to 07 +60%. A professional employment organization is perfect to help employers make the right payments for overtime work. 

Working Week

From Monday to Friday.

Employee Termination in Faroe Islands
Termination Process

Any workplace may experience extenuating conditions that lead to termination. For instance, serious violation of the contract of employment may occur in a circumstance involving the employee. Also, conditions unique to the employer or firm may include a necessary staff reduction or rearrangement.


However, pregnancy cannot be used as justification for firing an employee. The termination is unlawful if the company is unable to demonstrate that it had nothing to do with the pregnancy. Hence, the law on pregnancies requires this.

Notice Period

According to the employee's seniority, the amount of notice varies.


  • An hourly worker who has been hired for six months must give at least 7 working days' notice.
  • For an employee with a regular monthly salary who has been working for more than six months but less than two years, the notice period is two months.
  • For salaried workers who have been employed for six months to three years (apart from temporary or probationary employment), the notice period is three months. 

Severance Pay

Severance pay is not provided for under Faroese labor laws.

Probation Period

Regarding probationary terms, no general legislation exists. A three-month probationary period, however, may be agreed upon.

Employee Leaves in Faroe Islands
Paid Time Offs

In general, the annual leave entitlement is 6 weeks in the Faroe Islands. 

Faroe Islands famous place - find your EOR
Public Holidays

There are 15 national holidays throughout the year.

Vacation Holidays

There are 42 vacation holidays throughout the year.

Sick Days

You may be eligible for sickness benefits if you lose your job due to illness. One requirement is that before the sick vacation starts, you must have been employed for at least 5 weeks.


Moreover, the benefit can be received for a maximum of 40 weeks. To maintain your eligibility for sickness benefits, you must receive any medical treatment that helps you regain your capacity to work if it is given to you.

Paternity Leave

Paternity leave for fathers lasts four weeks.

Paternal Leave

In addition, mothers also have the option of splitting the additional 34 weeks of paid leave amongst themselves.

Other Leave

There is not specification about other leaves in the law.

Maternity Leave in Faroe Islands

4 weeks prior to delivery and 14 weeks following childbirth, mothers are entitled to paid leave. With an employer of record in Faroe Islands, companies can obtain payroll outsourcing services to pay their female pregnant employees during this leave.

There are 126 leave throughout the year.

Faroe Islands famous place - find your EOR

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