Faroe Islands ALS, Barsil & Social Funds Calculator
Accurately calculate statutory social fund deductions and employer overhead charges in the Faroe Islands under TAKS regulations, including ALS Unemployment, Barsil Parental Fund, AMEG Pension, and Heilsutrygd Health.
Salary & Contribution Inputs
Taxable wage base before pension or tax withholdings.
Total monthly statutory fund remittances to TAKS, combining employee wage withholdings and employer labor overhead.
Statutory Fund Breakdown All amounts in DKK
| Statutory Fund | Payer | Rate | Monthly | Annual |
|---|---|---|---|---|
| ALS Unemployment Fund | Employee | 1.25% | 438 kr. | 5,250 kr. |
| ALS Unemployment Fund | Employer | 1.25% | 438 kr. | 5,250 kr. |
| Barsil Parental Fund | Employer | 0.86% | 301 kr. | 3,612 kr. |
| AMEG / Samhaldsfasti Pension | Employee | 3.00% | 1,050 kr. | 12,600 kr. |
| Heilsutrygd Health Fund | Employee | 0.55% + 170 | 363 kr. | 4,350 kr. |
| Total Combined Contribution | Total | 7.39% | 2,588 kr. | 31,062 kr. |
Faroe Islands Labor Funds & Social Contributions Framework
Arbeiðsleysisskipanin (ALS)
ALS is the mandatory Faroese unemployment insurance system governed by Logtingslog um arbeiðsloysistrygd. Unlike voluntary unemployment funds (A-kasser) in Denmark, ALS is universal and compulsory for all wage earners in the Faroe Islands. Both the employee and the employer pay 1.25% of taxable gross salary, creating a combined 2.50% funding pool managed by ALS and collected by TAKS.
Barsilsskipanin (Parental Fund)
The Barsil scheme finances maternity and paternity leave benefits across the Faroese private and public workforce under Logtingslog um barsilsskipan. It is financed entirely by employers through an 0.86% payroll surcharge. Eligible parents receive standardized weekly benefit disbursements directly from the Barsil fund, removing direct financial strain from individual employers during leave periods.
Samhaldsfasti / AMEG Pension
Arbeiðsmarknaðareftirlonargrunnurin (AMEG), colloquially known, is the collective labor market pension scheme. Employees contribute 3.00% of their gross earnings at source. This provides a universal solidarity pension foundation for all residents upon reaching retirement age, supplementing private labor-market pension plans.
Heilsutrygd (Health Insurance)
The Faroese National Health Service (Heilsutrygd) is funded through a hybrid mechanism: a standard monthly flat base contribution of 170 DKK plus an income-proportionate levy of 0.55% of gross wages. This covers primary healthcare, general practice doctor consultations, and island medical infrastructure.
Frequently Asked Questions (FAQ)
What are the mandatory payroll fund contributions in the Faroe Islands? ↓
Mandatory social fund contributions collected via TAKS payroll include ALS Unemployment (1.25% employee + 1.25% employer), Barsil Parental Fund (0.86% employer), AMEG / Samhaldsfasti Pension Fund (3.00% employee), and Heilsutrygd National Health Scheme (0.55% + 170 kr. fixed monthly fee).
Who pays the ALS unemployment contribution? ↓
The ALS contribution is split equally: the employee pays 1.25% withheld at source from their gross wage, and the employer pays an additional 1.25% overhead contribution on total gross wages paid.
What is the Barsil scheme and who finances it? ↓
Barsilsskipanin is the statutory parental leave fund in the Faroe Islands. It is financed 100% by employers via a mandatory 0.86% payroll contribution on all paid gross salaries, funding paid parental benefits for eligible mothers and fathers without burdening single employers during leave.
What is the AMEG (Samhaldsfasti) contribution? ↓
AMEG (Arbeiðsmarknaðareftirlonargrunnurin / Samhaldsfasti) is the Faroese labor market pension supplement fund. Employees contribute 3.00% of their gross taxable wages, which finances solidarity retirement pensions across the archipelago upon reaching pensionable age.
Are these fund contributions deducted before or after income tax? ↓
Social fund contributions such, AMEG, and Heilsutrygd are calculated directly percentages of gross taxable wages and collected at source by TAKS alongside municipal and national income taxes.
📊 TAKS & Faroese Labor Market Funds (Samhaldsfasti) Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (DKK) |
|---|---|
| Primary Net / Statutory Payable Amount | 0 kr. |