All individuals under the age of 67 with full or limited tax liability in the Faroe Islands contribute a percentage of their income to the AM-fund. The fee is automatically withheld from your A-income. At the same time, all employers also contribute a percentage of the wages they pay their employees to the AM-fund. However, employers do not contribute to the AM-fund for individuals employed under FAS and similar systems.
The rate is determined by the Faroese Parliament and is currently set at 3.00% (2025).
Under certain circumstances, exemptions may be given, these are:
- If you have limited tax liability and work on a boat under FAS or on a similar boat.
- If you move to the Faroes and there are less than three years left until you reach retirement age.
- If you are covered by Nordisk Konvention om Social Sikring you may apply for an exemption.