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Eligibility requirements for paternity allowance

To be eligible to receive paternity allowance for the father or co-mother, you must:

  1. not be working because of childbirth or adoption
  2. look after the child during the paternity leave
  3. live and have full tax liability in the Faroe Islands
  4. have had an A-income in the 12 months prior to the paternity leave
  5. and/or have had a B-income and have taken out insurance for parental benefits
The requirements explained

Here we go through each requirement for paternity allowance for fathers or co-mothers and explain them in greater detail. If you are a student, self-employed, B-wage earner or if you work on a ship registered in FAS, please see the sections below for further information.

1. not be working because of childbirth or adoption
You must not be in the labour market because you recently became a father or co-mother.

2. look after the child during the parental leave 
You must look after the child in the period you receive paternity allowance. If you are at home with the child 100% of the time, you receive 100% of the paternity allowance. If you are at home 50% of the time, you receive 50%.

For example, say you have two A-income jobs and would like to keep one of them during the paternity leave. Then the income from the work you carry on with is not included in the calculation of the paternity allowance. Another example could be that you start a part-time job while you are still on paternity leave. In this case, the income from the new job is offset against the paternity allowance, and your allowance decreases accordingly. Please note that being a member of a committee is considered a part-time job if you receive A-income from it. Should you want to continue as a committee member while on paternity leave, please let Barsilsskipanin know the name and VAT-number (V-tal in Faroese) of the employer, as well as the period of work.

B-income is not offset against the paternity allowance.

3. live and have full tax liability in the Faroe Islands

You must live in the Faroes at the time when your paternity leave starts. Concretely, that means that your address is registered with the National Register as being in the Faroe Islands. Should you later relocate to another Nordic country, you may still receive the paternity allowance, but the condition is that you live in the Faroes at the start of the leave. Click the link on the right called "Moving to or from the Faroe Islands" to read more about relocation.

To have full tax liability in the Faroe Islands means you pay all your taxes and dues to the Faroes. Dues are paid for health insurance, parental benefits, public broadcasting license, unemployment benefits and obligatory pension contribution. However, if you are under the age of 24, you are exempt from paying for the public broadcasting license.

4. have had an A-income in the 12 months prior to the parental leave

A-income is salary earned from an employer. It can also be unemployment benefits, daily benefits or public assistance to care for sick children. A-income is taxed at source, meaning that taxes are automatically withheld before you receive the money. The paternity allowance is based on your average monthly A-income over the last 12 months; however, it cannot exceed 25,000 DKK per month. Click the link on the right called "Payment" to read more about the payments.

5. and/or have had a B-income and have taken out an insurance for parental benefits

B-income is income from self-employment, for example, if you have a business of your own and you receive payments from customers. B-income could also be income from a foreign employer. B-income is not taxed at source, meaning that the B-wage earner must make an estimate of the expected annual income at the beginning of the year and will subsequently be sent tax invoices. B-wage earners have a duty to submit their accounts and tax returns to TAKS.

If you have received B-income in the last year, then it is necessary to take out a parental insurance policy to qualify for paternity allowance. See the sections below entitled "If you are self-employed", "If you have a B-income" or "If you are a sailor covered by FAS".

If you are a student

If you are enrolled as a student and receive student grants, you may still be able to claim paternity allowance. However, student grants are not considered A-income and therefore they do not count towards the paternity allowance. You must have had A-income in the 12 months leading up to the paternity period in order to receive paternity allowance from Barsilsskipanin.

As a student, you are also eligible to get a parental student grant from Studni (the Faroese Student Grant Fund). Read more about this possibility by clicking the link "Parental grants for students" on the right-hand side (please note that this link opens an external site that is written in Faroese).

If you are studying in a Nordic country and move to the Faroe Islands
Contrary to the Faroes, in the other Nordic countries, student grants count as A-income. Therefore, if you move to the Faroes from another Nordic country, the student grants will be taken into account when calculating the paternity allowance. However, if you move to the Faroes and claim paternity allowance, you cannot keep receiving student grants from the country you left.

If you are unemployed

If you are unemployed and receive unemployment benefits from ALS, you are still eligible to receive paternity allowance from Barsilsskipanin. The benefits are taken into account when calculating the paternity allowance. In this case, ALS is considered your employer and therefore must confirm your application.

If you are self-employed

If you are self-employed, you must take out a parental insurance policy to qualify for paternity allowance. The insurance premium is 3,000 DKK, annually, and you must have been covered for at least one year before you can receive any payments.

Read more about this in the section "Insurance"
Here you will also find application forms and the insurance terms.

If you have a B-income

If you receive your income as B-income, for example, if your employer is foreign, you must take out a parental insurance policy to qualify for paternity allowance. The insurance premium is 3,000 DKK, annually, and you must have been covered for at least one year before you can receive any payments.

Read more about this in the section "Insurance"
Here you will also find application forms and the insurance terms.

If you work on a ship registered in FAS

If you are a Nordic citizen and you are working on a ship that is registered in the Faroese International Ship's Register (FAS), you must take out a parental insurance policy to qualify for paternity allowance. The insurance premium is 0.86% of the A-income you earn after the insurance is acquired, as a limited taxpayer under the FAS-system. The insurance must have been valid for at least one year before you can receive any payments.

Read more about this in the section "Insurance"
Here you will also find application forms and the insurance terms.