Norway plans to issue holiday pay to people furloughed and unemployed in 2020

Norway plans to issue holiday pay to people furloughed and unemployed in 2020
Photo by Andrew Neel from Pexels
Nav, Norway’s public welfare agency, is preparing to issue holiday pay on unemployment benefits before the summer, even though the scheme is yet to be adopted.

According to Norwegian employment law, employees have the right to holiday pay  amounting to 10.2 or 12 percent of annual salary from the previous year. Freelancers and independent contractors normally do not.

Under a recently-proposed scheme, people who are eligible will receive 10.2 percent of their unemployment benefits as holiday pay from Nav, the national agency which administers public welfare.

Earlier this year, the ‘green’ and ‘red’ parties on Norway’s left made demands for holiday pay on unemployment benefits for the unemployed and laid-off workers (permittert in Norwegian). Permittering refers to people laid off or furloughed or not working their full hours due to Covid-19 restrictions or their consequences.

The government agreed to part of those demands and presented proposals at the end of March. 

READ MORE: ‘Fellesferie’: What you need to know about holiday pay in Norway

Holiday pay on unemployment benefits is scheduled to be be reviewed again in parliament to smooth over some of the finer details of the proposal. But Nav plans to pay out the holiday before the summer and it should automatically enter your account if you are registered and eligible, the agency has said.

“Nav has initiated work on such a solution, so if it is adopted, it now looks like we will receive payment before the summer holidays,” Nav preparations manager Yngvar Åsholt told trade union news media FriFagbevegelse.

Many people will probably be entitled to holiday pay on unemployment benefits that they received in 2020.

The government’s proposal allows for:

  • Holiday pay on unemployment benefits, calculated at 10.2 percent of paid unemployment benefits during the calculation period.
  • The calculation for payment in 2021 is set for April-December 2020. Only people who received unemployment benefits during this period will be entitled to holiday pay.
  • Only those who were unemployed or laid off for more than eight weeks receive holiday pay.
  • A maximum of 25,000 kroner will be paid in holiday pay. If this limit had not been set, people who were out of work for the entire period could have received up to 33,000 kroner in holiday pay for the period April-December 2020. 
  • Persons who, as of June 8th, 2021, are entitled to four weeks holiday with unemployment benefits, will not receive holiday benefits.
  • Persons who have been laid off for 52 weeks on June 8th or later can both take four weeks holiday with unemployment benefits this summer and receive holiday pay benefits for unemployment benefits.

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