June 18, 2024
REMEMBER! Both employees and employers in Norway should reach a compromise on vacation issues if one party has a different opinion. According to the Norwegian Working Environment Act (Arbeidsmiljøloven), the employer makes the decision regarding vacation planning in the company. The conditions for granting vacation can be further specified in the company's regulations but cannot be worse than those proposed in the Working Environment Act. NOTE! The amount of holiday pay and the number of vacation days must be included in the written employment contract signed by the Norwegian employer and the employee.
More information on the rules for paying the benefit can be found on our blog:Holiday Pay in Norway.
The Novum team wishes you a pleasant holiday!
Authors: Paulina Anna Skopowska, Anna Korpalska
What is Feriepenger?
Feriepenger, or "holiday money," is a vacation benefit for employees working in Norway. It is part of the salary that the employer accumulates throughout the year and pays out before the vacation period, allowing employees to enjoy their holidays without worrying about losing income.
When and How is Feriepenger Paid?
Feriepenger is typically paid once a year, usually in spring or early summer, right before the vacation period begins. The exact payment date depends on the agreement between the employee and the employer, but it usually happens before the planned vacation.
Calculation Rules for the Benefit
The amount of feriepenger is calculated based on the salary from the previous calendar year. Generally, it amounts to 10.2% of the annual salary, but employees over 60 years old receive 12.5%. This amount can be higher if the company has a collective agreement (tariffavtale), which may increase the benefit.
Rights in Case of Illness
If an employee is on sick leave at the time feriepenger is paid, they have the right to use the accrued vacation after returning to work. This ensures that everyone can fully enjoy their entitled rest.
Application Procedure
To receive feriepenger, an application must be submitted to the employer or the appropriate institution handling the benefit payments. The application can be submitted electronically or in paper form, depending on the procedures established by the employer.
What Else is Worth Knowing?
- Right to Feriepenger: It is available to employees, seafarers, and fishermen working in Norway. Self-employed individuals and unemployed persons are not entitled to this benefit.
- Unused Vacation Days: These carry over to the next year if not used in the current year.
- Termination of Employment: In case of employment termination, feriepenger is paid as part of the final settlement.
Summary: Feriepenger - Norwegian Holiday Benefit
Feriepenger is an important benefit supporting Norwegian employees during their vacations. It provides financial security and allows them to enjoy a well-deserved rest without worrying about loss of income.
REMEMBER! Both employees and employers in Norway should reach a compromise on vacation issues if one party has a different opinion. According to the Norwegian Working Environment Act (Arbeidsmiljøloven), the employer makes the decision regarding vacation planning in the company. The conditions for granting vacation can be further specified in the company's regulations but cannot be worse than those proposed in the Working Environment Act. NOTE! The amount of holiday pay and the number of vacation days must be included in the written employment contract signed by the Norwegian employer and the employee.
More information on the rules for paying the benefit can be found on our blog:
The Novum team wishes you a pleasant holiday!
Authors: Paulina Anna Skopowska, Anna Korpalska
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