Hello dear students!
If you are working in Norway, understanding your rights and responsibilities as an employee is crucial. One unique aspect of the Norwegian employment system that may be new to many of you is ‘feriepenger’ or ‘holiday pay’.
Feriepenger: An Overview
In Norway, vacation or holiday pay is not covered by your monthly salary. Instead, employers set aside a sum known as ‘feriepenger’ or ‘holiday pay’. This arrangement is fundamentally different from many countries where you receive your usual pay while on leave.
How Feriepenger Works
Feriepenger is accrued from your earnings during the previous calendar year and is usually paid out the year after it’s earned. This means that for every year of work, you are accruing holiday pay for the following year.
For example, if you started working in 2023, your holiday pay in 2024 will be based on what you earned in 2023. It’s important to note that you’re not earning extra money but simply having some of your previous year’s pay reserved for your holiday period.
Calculating Feriepenger
By law, ‘feriepenger’ is calculated as a percentage of your previous year’s gross income (earnings before tax).
For those who have not turned 60 by the end of the earning year, the minimum holiday pay is 10.2% of your gross income from the previous year. For those who have turned 60 and have a five-week vacation, the holiday pay is 12.5%.
First Year of Work and Feriepenger
When you are in your first year of work, the system works slightly differently. As you have not earned any income in Norway during the previous year (assuming this is your first job in Norway), you will not receive ‘feriepenger’ for your holiday. However, you are still legally entitled to take time off. The challenge here is that your time off may be unpaid if you have not accrued enough ‘feriepenger’. Remember that you are, during this year, accruing ‘feriepenger’ to be used in the following year.
A Gentle Reminder
This post aims to provide a simplified understanding of ‘feriepenger’. However, different workplaces may have their own specific policies, and terms of employment can vary. Always check your employment contract and consult with your employer or HR department to understand how ‘feriepenger’ applies to you.
It’s also beneficial to seek advice from the Norwegian Labour Inspection Authority or a trade union if you’re a member. For more in-depth information, refer to the Norwegian Holidays Act (‘ferieloven’).
Remember, this blog post provides general information and isn’t legally binding. Please seek professional advice in your unique circumstances to get the most accurate and up-to-date information.
We hope this helps clarify the concept of ‘feriepenger’! Don’t hesitate to reach out with any further questions.
Enjoy your work journey in Norway and the holidays that you earn along the way!
