A collective agreement is the written agreement that Føroya Arbeiðarafelag (the trade union) enters into with Føroya Arbeiðsgevarafelag (the employers’ association). Negotiations usually take place every two years, and the agreement is therefore normally valid for two years, after which a new agreement is made with the changes that the parties agree upon.

The collective agreement specifies, among other things, the wage level and the notice period employees are entitled to.

You can read the collective agreements here.

The union has a minimum hourly wage of DKK 154.54 as of 1 May 2025.

Young workers aged 14 receive 50% of the full adult wage.
Workers aged 15 and 16 receive 75% of the adult wage, both for normal hours and overtime.
Workers aged 17 receive the full wage.

According to Article 11 of the main agreement, employees must always be paid for at least two hours, even if the work lasts for a shorter period.