It is important to the Faroese Workers’ Union that its members’ standard of living does not drop when they retire from the job market. That is why it is important to have a good pension scheme in addition to the solidarity pension and the public pension.
The Faroese Workers’ Union has maintained a pension scheme for its members since the start of this century. This is an annuity pension scheme, which means that you will receive a monthly amount for the rest of your life after you become 67 years old. The size of the pension benefit is connected to how much you have paid when you were on the work market. The pension payment that the employer pays is 10%.
For working pensioners, the pension is not paid out but paid to the worker in addition to the wage. For workers on the hourly wage that take time off without pay, 8.58% are added and 9.43% are added to the pay for pensioners who take time off with leave.