Pension

The employer's contribution is 11,2% in addition to the contractual wage. This will be paid into the pension fund. The payment should be transferred as Earnings Before Tax (EBT) income to account 9870-990.557.0.

This arrangement applies to all those working in the contractual areas of the Tórshavn Workers Union.

Pension payment for pensioners 
The parties in the private labour market have agreed that those who have reached the public pension age will instead receive the pension amount as salary. 

Before the amount is paid, deductions will be made from the amount, which should be paid simultaneously with the salary so that the employer's expenses remain unchanged. 

From January 1, 2018, an additional 8.58% will be applied to the wages of hourly employees and 9.43% to those who take vacation with pay. 

On August 1, 2020, the pension contribution will increase to 11%, and then an additional 9.40% will be applied to the wages of hourly employees and 10.32% to those who take vacation with pay.