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HOLIDAY

‘Feriepenger’: What you need to know about holiday pay in Norway

As an employer or employee in Norway, it is important to understand how the holiday time and pay system works. Here's our guide to the Norwegian holiday regulations and culture to help you clock-out and enjoy life outside of the job.

'Feriepenger': What you need to know about holiday pay in Norway
Photo: S'well on Unsplash

What is fellesferie?

Before we fully get into breaking down how the holiday time and pay system works in Norway, it’s necessary to explain how Norwegian culture has adopted a system called fellesferie, or collective holiday. Collective holiday occurs in the last three weeks of July. It is when a considerably large number of residents in Norway choose to take time off work. It is during this time a lot of shops close permanently for three weeks, and why even the capital city’s streets in Oslo feel almost eerily quiet.

So ingrained is fellesferie in a Norwegian’s way of life is that as an employee, you may insist to your employer that you get to take these three weeks off. Collective holiday is only three weeks, but the main period of vacation time in Norway lasts from June 1st until December 31st.

The legislation 

Family and work-life balance isn’t just an idea here in Norway. It’s practiced. And there have been laws set in place to make it easier to do so. The Annual Holidays Act, or ferieloven, is intended to ensure that employees receive annual holiday.

Holiday pay, which is a part of this legislation, is intended to ensure that employees do not lose out on salary during holiday periods.

Employees are entitled to four weeks and one day of paid holiday each calendar year. While four weeks and one day is the law, it is common for most companies to have a five-week arrangement in place, states national labour regulator Arbeidstilsynet.

Who is entitled to keep track of holiday pay?

We know learning a new system isn’t easy, but luckily it isn’t your job as an employee to punch in the correct numbers. It is the employer’s job to make sure the correct sum is paid out for holiday pay, and that it is paid out on time. 

For public businesses and institutions, and a majority of private run companies in Norway, it works like this. Every month you receive a paycheck with your pre-taxed earnings, called your brutto sum. The brutto sum is the amount of salary you made before taxes. Along with the amount for taxes being deducted, there is a percentage (a minimum of 10,2 percent) of your monthly earnings that has been withheld to be paid back out as holiday pay at a later date. 

Click here to calculate how much holiday pay you should receive. 

Holiday pay is most commonly paid out at the end of the month of June, or right before what Norway considers to be a collective holiday. Receiving holiday pay at the end of June is the most common practice, but in principle, holiday pay is to be paid out on the last regular payday before the time free from work is taken.

It’s also important to note that holiday pay is not taxed monthly, but it is taxed as a total sum on the month it is paid out. 

How much holiday pay and time are you entitled to?

The amount of holiday pay you make will be a collective monthly percentage of what you have made in the past year. If you have not worked in the year leading up to your holiday, you still have the right to take holiday, but without pay. 

While one can insist on taking time off during the three weeks of collective holiday, the remaining days of time off are to be agreed between the employee and employer in good time leading up to the holiday, according to the law. If it is impossible to find an agreement, then it is the employer who determines the time for the holiday.

As an employee, you are also not allowed to demand your holiday be divided up into individual days (hello four-day work weeks!) unless you have an agreement with your employer. 

And as much as you have the right to take your annual leave, you can also refuse to if you have been working for less then a year and your holiday pay is thereby less than your normal monthly salary. However, you can not refuse to take a holiday if your employer closes down in whole or in part in connection with holiday cancellations. During fellesferie, for example.

Didn’t get around to using all of your holiday time? It’s ok. As stated by holidays act, an employer and employee can agree in writing to allow up to two weeks of holiday to be transferred to the following year. 

Some additions to be aware of

Perhaps one of the rules most distinguishing Norway then from other countries holiday pay systems is this one. If you are sick during your holiday, then you are entitled to get the time back. That’s right, if you fall ill during your requested time off, then you can request a new set of days later in the year to take free. Before this starts to sound too good to be true, new vacation days are not given for having a common cold, for example. A sick employee requesting a new holiday needs to hand over a medical certificate to their employer proving they were ill as soon as possible.  

Norway offers a big present to those who turn 60! Employees aged 60 and older are entitled to one additional week of holiday for every year until they retire. The over-60s also have the right to withhold 12,2 instead of 10,2 percent of their monthly salary to be paid out as holiday pay. 

If you change jobs, your vacation time can be transferred to your new job, but it is most commonly paid out as a lump sum and attached to your last paycheck.

What are the national public holidays in Norway?

There are 13 days in the calendar year that are considered ‘red days’.  Red days are when most shops, public offices, and many attractions are closed. But before you start making plans, check with your employer. Depending on where you work, these are not guaranteed days off. 

This year, the red days are: are New Year’s day, Maundy Thursday (April 1st), Good Friday (April 2nd) The 1st and 2nd days of Easter (April 4th and 5th),  Labour day (May 1st), Norway’s National Day (May 17th), Ascension (May 13th), the first day and seconds days of Pentecost (December 23rd and 24th), Christmas Day and December 26th.

Useful Vocabulary 

  • ta fri take time off, finish work (literally: ‘take free’) 
  • Endelig, det er fredag!Finally, it’s Friday!
  • permission uten lønnunpaid leave
  • sommerferie – summer holiday 
  • biltur – road trip 

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For members

NORWEGIAN HABITS

Five useful things to know before you move to Norway

Moving to a new country comes with plenty of unexpected lessons and surprises. Norway is no different, and here are six things you'll need to know before the move. 

Five useful things to know before you move to Norway

Patience 

While you may presume Norway is an efficient society, and it can be once you get the ball rolling, plenty of patience will be required. 

This is because fixing the essentials can take quite a while. In recent years, long waiting times for residence permits have become common. 

Furthermore, once you are granted residence and given an identity number, setting up things like a bank account could take weeks or months rather than days. 

When it comes to getting a job, interview stages can take a while to get going, especially if periods like the summer holidays or Easter slow things down. 

A shortage of GPs and long patient lists make doctor appointments difficult. Meanwhile, if you decide to make a home in the country, you will likely need to live there for five to eight years before becoming eligible for citizenship. 

READ ALSO: What paperwork do you need to open a bank account in Norway

Norwegian flags 

Norwegians take great pride in their country, and as a result, their flag also features quite prominently. 

If you live in an apartment block, you can normally tell when it’s a neighbour’s birthday, as they will have the Norwegian flag on display. 

Norway’s flag is also featured prominently in other celebrations and festivities. The most famous of these is May 17th or Constitution Day. However, most stores will have year-round sections where it is possible to buy Norwegian flag decorations.

Week numbers 

This one can be frustrating to come to terms with, and for many, it won’t make much sense even after living in the country for a while. 

Norwegians use week numbers to refer to points in time, either in the past of the future. It’s common for you to hear phrases like “We will be closed in week 32, but reopen in week 33 or “The project needs to be finished by week 42

It’ll be typical for a local to rattle of week numbers and expect you to know exactly where in the calendar they are talking about. 

READ ALSO: Why Norwegians use week numbers instead of dates

Reserved locals can make it hard to make friends

One of the toughest aspects of moving somewhere new is establishing a new network of friends. 

Small talk isn’t really huge in Norway, and the locals are known for their reserved and private nature. 

Its unlikely that you’ll be striking up conversations on the bus or that you’ll progress beyond more than a polite greeting with most of your neighbours. 

This is done to respect privacy rather than to be rude or cold. 

However, this can make making friends difficult as plenty of locals don’t make too many more friends in adult life and are content with their circle.

Still, it’s entirely possible to form lifelong friendships with the locals, especially if you just give it time and have something like a shared sport or hobby to break the ice. 

READ ALSO: Settling in Norway: Five places to meet new people and make friends

Festival celebrations 

Norwegians love to celebrate, and that’s why you’ll soon be marking your calendar with events like sankthansaften or syttende mai

The best thing about these festivals or days is that they come with a whole host of specific traditions or foods. 

Sankthansaften see’s people gather round bonfires to celebrate the summer solstice, it’s also typical for children to collect wild flowers to put underneath their pillows so they can dream about their future partner. 

Santa Lucia is marked every year on December 13th, and some people make special buns and see children visit old people’s homes for light processions. 

Then they are the more individual family traditions that surround New Year’s, Easter, Christmas and May 17th. 

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