sluttlønn

Sluttlønn is a Norwegian term used to describe the final salary that is used as the basis for certain pension calculations and, in some contexts, for severance arrangements. It refers to the wage level at the end of an employee’s career, typically the last year’s wage or the salary at retirement. The concept is most common in defined-benefit pension schemes and in some collective agreements where future benefits are linked to the sluttlønn rather than a career average.

In pension calculations, sluttlønn is often combined with an accrual rate and years of service to determine the pension benefit. Because it ties benefits to the final wage, sluttlønn can create incentives for higher earnings late in a career and has contributed to reforms that move toward career-average or average-wage concepts.

Not all pension schemes use sluttlønn; many have shifted to gjennomsnittslønn (average salary) or innskuddspensjon (defined-contribution), where benefits depend on contributions and investment returns rather than final pay. The use of sluttlønn varies by sector, country, and collective agreement; in Norway it is more prevalent in older public-sector schemes and in some private-sector contracts.

Sluttlønn is sometimes confused with severance pay (sluttvederlag). Severance is a one-time payout on departure, while sluttlønn is the basis for ongoing pension or retirement benefits.