Twelve extra weeks of unemployment benefits

Proposed legislation seeks to add an additional 12 weeks to the maximum unemployment benefits payment period.

The existing law allows for no more than 40 weeks of unemployment benefits over 12 months.

But Elsebeth Mercedis Gunnleygsdóttir, the Minister of Social Affairs, has now presented a bill which seeks to extend this period to 52 weeks over an 18-month period.

The minister argues that this extension is necessary as it is not unusual for e.g. cancer patients to be unfit for work for more than 40 weeks.

If adopted in Parliament, the new law will come into force on 1 January 2022.

Compensation for family caregivers

Another proposed change is a revision of the procedures regarding compensation for people who provide care services to family members.

The existing law states that such compensation can be provided in accordance with both the unemployment benefits act and the social services act. To avoid possible inconsistencies in payouts, the new bill seeks to get these compensations paid out under the social services act only.

And, according to the new bill, the new expedited pension payment plan will be put on an equal footing with early retirement pensions under the unemployment benefits act.

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A further change is that people who have deferred their state pensions will now be entitled to unemployment benefits.

Self-employed people who run their own business enterprise are currently eligible for social services insurance, provided that their company only consists of the owner.

The new bill aims to remove this provision, allowing for additional staff, with annual salary payouts of up to DKK 1.9 million.

These changes are estimated to cost about DKK 2 million per year.

Read the Faroese version of this article here.

Translated by prosa.fo.

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