May 26, 2025
Feriepengeris a statutory holiday allowance that replaces regular wages during vacation time. According to the Norwegian Holiday Act (Ferieloven), each employee is entitled to 25 working days of holiday per year, which equals four weeks and one day. Employees covered by collective agreements may be entitled to an additional week of vacation.
Branches of foreign companies registered in Norway as NUFs are obligated to follow Norwegian regulations related to feriepenger. This includes:
Feriepenger is typically paid in the period between June and September and replaces the regular salary for that month. If the employee does not take vacation, the amount cannot be paid out as cash unless the employment relationship ends.
In the case of NUFs it is possible to calculate and pay out the allowance after the assignment is over, if the employees have been deployed to Norway for a short time. I is also advised to pay out feriepenger at the end of the year to employees who might not returen to Norway the following year.
For foreign branches operating in Norway, complying with feriepenger regulations is not only a legal requirement but also part of being a responsible employer. Providing employees with their entitled holiday pay helps build trust, improve satisfaction, and reduce legal risks.
Holiday pay, known as feriepenger, is an important element of the Norwegian employment system, designed to provide employees with financial support during their vacation. For branches of foreign companies operating in Norway (NUF), understanding and complying with the rules regarding feriepenger is crucial to ensure alignment with Norwegian labor law.
What is Feriepenger?
Feriepengeris a statutory holiday allowance that replaces regular wages during vacation time. According to the Norwegian Holiday Act (Ferieloven), each employee is entitled to 25 working days of holiday per year, which equals four weeks and one day. Employees covered by collective agreements may be entitled to an additional week of vacation.
The standard rate of feriepenger is 10.2% of the employee's gross salary from the previous calendar year. For employees covered by collective agreements, this rate can be 12%. Employees over the age of 60 are entitled to an extra 2.3%.
Obligations of Branches of Foreign Companies (NUF)
Branches of foreign companies registered in Norway as NUFs are obligated to follow Norwegian regulations related to feriepenger. This includes:
- Calculation and payment of feriepenger: NUFs must calculate feriepenger based on the employee’s gross salary from the previous year and pay them according to Norwegian law.
- Payment upon termination of employment: If an employment relationship ends, the employee is entitled to receive all outstanding feriepenger, including those accrued for the current year.
- Duty to inform: NUFs must inform employees about their accrued feriepenger, the amounts, and the expected payment dates.
When is Feriepenger Paid?
Feriepenger is typically paid in the period between June and September and replaces the regular salary for that month. If the employee does not take vacation, the amount cannot be paid out as cash unless the employment relationship ends.
In the case of NUFs it is possible to calculate and pay out the allowance after the assignment is over, if the employees have been deployed to Norway for a short time. I is also advised to pay out feriepenger at the end of the year to employees who might not returen to Norway the following year.
Summary
For foreign branches operating in Norway, complying with feriepenger regulations is not only a legal requirement but also part of being a responsible employer. Providing employees with their entitled holiday pay helps build trust, improve satisfaction, and reduce legal risks.
If you need assistance with feriepenger or any other aspect of Norwegian labor compliance, feel free to reach out to our team of experts.
office@novum.no
Author: Anna Korpalska
Graphics: Canva
Graphics: Canva
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