Unemployment benefits go up

Payouts of earnings-based unemployment benefits will increase next year.

Parliament yesterday passed a bill submitted by trade minister Helgi Abrahamsen which sought to increase unemployment payouts from 75 to 80 percent of a person’s previous taxable income and to increase the maximum monthly payout from DKK 17,500 to DKK 18,500.

The bill also sought to lower the unemployment insurance contribution from 1.25 to 1 percent of a person’s taxable income.

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MPs also approved other amendments to the unemployment Act, including one which brings the Faroese unemployment system more in line with the Nordic agreement on social security.

Another amendment will merge the appeals committees of Employment Service ALS and the Parental Leave Agency into one.

According to the trade minister, with the current strength of ALS’ finances, the system can withstand 12 consecutive years with an 8-percent unemployment rate. The latest figures, from September, show a 1.4-percent unemployment rate.

Translated by prosa.fo