In Norway, understanding and managing sick pay obligations is crucial for employers to ensure compliance with the law. In this blog, we’ll outline the key aspects of Norway’s sick pay system and how you can effectively manage these obligations.
Employees who have been employed for at least four weeks before going on sick leave, are entitled to sick pay in accordance with Norwegian regulations. If employment is temporarily interrupted for more than 14 days, the employer is no longer obligated to provide sick pay.
Further, employees must reside in Norway, another EEA country, or a country or area with a concluded bi- or multilateral social security agreement to obtain the right to sick pay.
Under the Norwegian Social Security Act, employers are required to cover sick pay for the first 16 days of an employee’s sickness absence. This applies to all employees entitled to sick pay under The Norwegian Social Security Act.
Sick pay during the first 16 days is calculated based on the employee’s regular salary for the last three months before sick leave. If the employee has had a permanent salary increase within the last three months, the increased amount should be the basis for the calculations.
However, sick pay calculations are limited to six times the National Insurance basic amount (1G equal to NOK 124 028 as of 01.05.24).
After the initial 16 days, the National Insurance Scheme takes over the responsibility of sick pay. The Scheme covers up to 100% of the employee's salary but only up to the specified limit mentioned above.
If the employer advances sick pay from the National Insurance Scheme, claiming reimbursement within three months is important. The reimbursement is limited to the specified limit mentioned above.
Also read: Norwegian National Insurance Scheme
The National Insurance Scheme covers holiday pay of sick pay for the first 48 days of sick leave, calculated to 10,2 percent.
If the employer advances sick pay from the National Insurance Scheme, it is important to remember that the reimbursement of holiday pay is limited.
Employees are entitled to sick pay for up to 12 months. Employers need to monitor the duration of sick leave to ensure compliance with the statutory limits and manage their own records accordingly.
Effective sick leave management involves maintaining accurate records, communicating clearly with employees about their rights and obligations, and providing support where necessary.
It is also mandatory for employers to ensure systematic prevention and follow-up of absence of employees due to sickness.
For employers in Norway, the above points are key to securing compliance with the Norwegian employment law. Proper management of sick pay from beginning to end will safeguard the company from potential liabilities.
At Magnus Legal, we help foreign companies navigate Norway’s sick pay system, ensuring a smooth and compliant process every step of the way. If you need assistance, feel free to contact us.