Unemployment benefits set to increase

A new bill seeks to lower the unemployment contributions from wage earners and increase the payouts for unemployed people.

According to the bill and the underlying directive, the unemployment contribution will drop from 1.25 percent to 1 percent. 

The bill also seeks to increase unemployment benefits from 75 percent to 80 percent of the calculation basis and to increase the maximum monthly dole payout by DKK 1,000 – from DKK 17,500 to DKK 18,500.

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ALS, the Faroese employment service, currently has an owner equity of approximately DKK 910 million.

“As the ALS finances are strong enough to withstand a financial setback, the time is right to lower the unemployment contribution, while at the same time improving conditions for those who are unemployed,” writes trade minister Helgi Abrahamsen in a press release. 

The bill’s consultation period ends on 29 January.

Translated by prosa.fo