feriepenger

Feriepenger, or holiday pay, is a form of compensation in Norway intended to cover wages during annual leave. It is paid by an employer and earned by employees who have a right to paid ferie according to the Holiday Act (Ferieloven). The money is designed to ensure that employees enjoy their ferie without a reduction in overall earnings.

Calculation and rate: The standard feriepenge rate is 10.2 percent of the employee’s gross wages earned in the previous calendar year. Some collective agreements or industry-specific rules provide 12 percent. Feriepenger are based on gross earnings and typically include most taxable remuneration, such as base salary and bonuses, but may exclude certain benefits or reimbursements as defined by law or agreement. Feriepenger are generally taxed as ordinary income according to the employee’s tax rate.

Payment timing and use: Feriepenger are usually paid during the vacation period when the employee takes ferie. If an employee does not take ferie, or leaves a job, feriepenge may still be paid out in connection with termination or the next vacation period, depending on applicable rules and any employment contract or collective agreement. The exact timing can vary between employers and sectors.

Eligibility and administration: All employees with a statutory right to vacation accrues feriepenge, subject to the rules in Ferieloven. Employers administer the payment, and NAV (the Norwegian Labour and Welfare Administration) provides guidance on regulations and rights. For specific calculations and eligibility in a given situation, employees should consult their payroll department, their collective agreement, or NAV guidelines. Feriepenger are a key part of ensuring workers receive full compensation during holiday periods.