Holiday Pay in Norway

July 03, 2023

The Holiday Act (ferieloven) and other agreements (union agreements) give Norwegian employers clear guidelines. Let's check which regulations apply when planning the holiday period in your Norwegian company. 

Holidays and holiday benefits in Norway


FACTS 



  • According to the Norwegian Vacation Act (ferieloven), everyone has the right to 25 working days of vacation per year.

  • Working days are counted from Monday to Saturday (25 vacation days = four weeks + one day).

  • The vacation year corresponds to the calendar year.

  • Vacation days (feriedager) are granted to ALL employees, regardless of whether they receive vacation benefits (feriepenger).

  • Employees who are 60 years old or older are entitled to an additional 6 days of vacation.

  • The employment contract may include information about a higher number of vacation days (union agreement or employer's goodwill).

  • Employees in companies covered by union agreements have the right to a fifth week (6 working days) of vacation.

  • A person starting work after September 30th is entitled to 6 days of vacation.

  • Typically, employees in Norway choose their vacation and receive vacation benefits during the vacation period from J une 1st to September 30th.

  • Holiday benefits (feriepenger) are earned for the following calendar year.

  • The standard vacation benefit rate (feriepenger) is 10.2%.

  • Employees who are 60 years old or older have the right to an additional 2.3% benefit.

  • Employees in companies covered by collective agreements have a vacation benefit rate of 12% - this is not included in the Holiday Act.

  • Taxation of the benefit occurs in the remaining months, so when holiday benefits are paid out, employees receive a larger sum to use for their holidays.

  • The employer is obligated to ensure that the employee uses all the vacation days allotted to them in a given year.

  • Unused holiday days cannot be exchanged for monetary compensation.

  • The holiday benefit - feriepenger for unused vacation - is paid out only in the case of terminating employment with a specific employer.

  • The employer should discuss the timing of vacation usage with the employee and/or the trust representative. If the parties do not agree, the employer has the final say in the matter.

  • Employees posted to Norway through branches of foreign companies (NUF) are also subject to the provisions of the Norwegian Holiday  Act.


The last point means that French or Portugese employees posted to work in Norway have their holiday benefits (feriepenger) calculated according to the Norwegian Holiday Act (10.2%) and added to their remuneration for the period of work in Norway. Similar to employees working in Norwegian companies, the benefit must be shown on the payslip - lønnsslipp.

The main stipulations of the Holiday Act in Norway are the rights and obligations of the employee to use their vacation and the employer's obligation to ensure the employee uses their vacation within the given calendar year/vacation year.

Author: Anna Korpalska
Graphics: novum.no; canva.com

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