Holiday pay
Concerns all cash benefits for holiday.
Brief information about holiday pay
Specify cash benefits for holiday, regardless of how you calculate the holiday pay. Concerns all holiday pay, regardless of whether the calculation is based on a percentage rate or is a holiday supplement to an ordinary fixed salary.
You must always specify holiday pay in full and not make any reductions for deductions from salary for holiday.
The Annual Holidays Act is intended to ensure that employees receive annual holiday.
Holiday pay is intended to ensure that employees do not lose out on salary during holiday periods because they are not entitled to salary at this time.
Holiday pay that is earned before the date of death, but paid after the date of death, must be reported as pay after death.
See more information on holiday pay
The information you must provide
| Amount | NOK x |
| Type of salary or benefit | Cash benefit, holiday pay |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes/No |
| Tax and contribution rules | If relevant |
| Additional information | - |
Amount
Specify the gross amount.
Holiday pay must never be reduced, even if you make deductions from salary for holiday. See also Deductions from salary for holiday.
Type of salary or benefit
Specify “cash benefit” and “holiday pay”.
Subject to withholding tax
The benefit must always be specified as subject to withholding tax in the a-melding, even if you do not make any withholding tax deductions.
You must not deduct withholding tax for:
- holiday pay which is paid during the holiday year and which is calculated in accordance with the Annual Holidays Act
- holiday pay calculated in accordance with a collective agreement, provided that the holiday pay does not exceed 12.34 percent of the holiday pay basis
You must always deduct withholding tax from holiday pay if the employee has a tax deduction card with 12 months of deductions, e.g. a tax deduction card with withholding tax for the PAYE (pay as you earn) scheme.
Over 60
For employees over 60 with entitlement to extra holiday, you must not make withholding tax deductions up to 12.34 percent. For the 2.3 percent supplement which is intended to cover the loss of salary linked to the extra week of holiday, you must make withholding tax deductions.
Employees who receive a monthly salary
For monthly paid employees who have received a salary from their employer throughout the accrual year, the exemption from withholding tax deductions can instead be implemented for an ordinary monthly salary, as well as in the holiday pay supplement.
In the case of exemption from deductions from a monthly salary, the exemption also covers the following:
- value of employment-related housing
- benefit of private use of employer's car
- value of other ongoing payments in kind.
The exemption does not cover:
- Surpluses on piecework remuneration
- Overtime remuneration
- Similar additional benefits.
If the employee was only employed for part of the previous year, a monthly salary can't be paid without the deduction of withholding tax.
You don't have to make withholding tax deductions if the amount to be deducted is less than the minimum thresholds for withholding tax.
Basis for employer's national insurance contributions
You must calculate employer’s national insurance contributions on this benefit.
Exemption:
You don't have to calculate employer’s national insurance contributions when the income recipient:
- is covered by the national insurance legislation of another country in accordance with a convention or the EEA Agreement
- is a foreign employee who is not a member of the Norwegian National Insurance scheme and who works on the Norwegian continental shelf or in Norwegian territorial waters
In some cases, the employee has a confirmation of a membership that is being maintained by their national insurance authority (A1 or another form). The Labour and Welfare Administration’s division for membership and contributions to the Norwegian National Insurance Scheme, NAV Medlemskap og avgift, will consider all documentation, register any exceptions from membership in the National Insurance Scheme and the relevant periods of exception, as well as whether the exception applies to all or parts of the National Insurance Scheme. Registered exceptions from membership in the Norwegian National Insurance Scheme are sendt electronically from NAV to the Tax Administration.
Only exceptions registered with the Tax Administration will allow the employer to omit calculation of employer's national insurance contributions for an employee.
The Tax Administration may assess employer's national insurance contributions if there is no exception registered for the employee, and if the reported salary or benefit is not included in the taxable basis.
The employer or the employee can contact NAV regarding questions about whether an exception from the membership in the National Insurance Scheme is registered.
Tax and contribution rules
If the income recipient fulfils the conditions, you must use the following tax and contribution rule:
This tax and contribution rule concerns:
- income recipients who are covered by the Svalbard Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Svalbard” for salary and other benefits.
You must also specify "Svalbard" for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Svalbard regarding trade union fees, premium for pension scheme, National Insurance premiums and education and development fund premiums and portacabin rent.
This tax and contribution rule concerns:
- income recipients who are covered by the Jan Mayen Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Jan Mayen and the Norwegian dependencies” for salary and other benefits.
You must also specify “Jan Mayen and the Norwegian dependencies” for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Jan Mayen and the Norwegian dependencies regarding trade union fees and premium for pension scheme.
See also the detailed information concerning Jan Mayen and the Norwegian dependencies
This tax and contribution rule concerns:
- seafarers who are entitled to a special deduction (seafarer's allowance) from their salary and other benefits,
- when it is earned through work on-board a vessel in service.
If the income recipient fulfils the relevant conditions, you must specify “special allowance for seafarers” for salary and other benefits.
See also the detailed information concerning the special allowance for seafarers
If you submit an a-melding for a tax-free organisation, you can use the following tax and contribution rule:
If you submit an a-melding for a tax-free organisation (tax-free companies, associations and institutions referred to in Section 2-32 first paragraph of the Tax Act), you can specify “tax-free organisation” for the salary or benefit.
If you do this, you won't need to consider whether the income recipient will pass the reporting obligation threshold of NOK 10,000 during the year. The specification must be used from the first krone and for payments throughout the whole year.
See also the detailed information concerning tax-free organisation
Additional information
No additional information.
Earnings period (voluntary)
You can specify the earnings period for all types of salary and other benefits in the a-melding. Both the start date and the end date of the earnings period must fall within the same reporting month.
See also the explanatory information concerning the earnings period
What is included in the basis for holiday pay
You must calculate holiday pay on the remuneration for work which is paid during the year before (the year of accrual) the holiday is taken.
The following benefits are included in the basis for holiday pay:
- ordinary salary
- bonuses/commission
- overtime remuneration
- nuisance bonus
- shift and piecework supplements
- sickness benefit paid during the employer period and sickness benefit up to 10 days paid by the employer in the event of the illness of a child or childminder (care allowance)
- free or subsidised board (payment in kind).
The following benefits are not included in the basis for holiday pay:
- expense allowances (car ownership, board, lodging)
- payments of holiday pay
- educational grants
- share of net dividends/surpluses
- fixed allowances which are earned and paid independently of absence on holiday (pension contributions, insurance premiums)
- payments in kind (free use of a car, free telephone, low-interest loans, free housing, etc.) - but free board is included, see above
- directors’ fees, etc.
Holiday pay supplement
Instead of paying all holiday pay in a single month, you can pay holiday pay as the holiday is taken. You can pay the part of the holiday pay which exceeds the employee's ordinary salary during the holiday as a holiday pay supplement together with the employee’s ordinary salary in June under the provisions of the Annual Holidays Act.
Number of days’ holiday
According to the Annual Holidays Act
Employees are entitled to 25 working days of holiday/time off every year. Employees who reach the age of 60 during the holiday year are entitled to six days’ extra holiday, i.e. a total of 31 working days.
According to a collective agreement
Employees covered by a collective agreement under the Norwegian Confederation of Trade Unions (LO)/Confederation of Norwegian Enterprise (NHO), state or municipal sector or other minor collective areas have had their holiday extended to five weeks (30 working days) or six weeks in the case of employees over 60 (36 working days). Saturday is counted as a working day.
Overview
|
|
Under 60 |
Over 60 |
||
|
|
Annual Holidays Act |
Collective agreement |
Annual Holidays Act |
Collective agreement |
|
5-day week |
21 days |
25 days |
26 days |
30 days |
|
6-day week |
25 days |
30 days |
31 days |
36 days |
|
Rate for calculating holiday pay |
10,2 percent |
12 percent |
supplement 2.3 percent up to 6 National Insurance basic amounts (G) |
supplement 2.3 percent up to 6 National Insurance basic amounts (G) |
|
Payroll withholding tax |
Not subject to withholding tax |
Not subject to withholding tax |
The supplement is subject to withholding tax |
The supplement is subject to withholding tax |
See also Deductions from salary for holiday.
When to report
Report the benefit in the calendar month in which you paid the amount.
Correcting errors
| MAGNET_EDAG-114 Invalid value |
| MAGNET_EDAG-114B Invalid value for this calendar month |
| MAGNET_EDAG-200 This income has been reported with incorrect information and is invalid |
| MAGNET_EDAG-230B Invalid value |
| MAGNET_EDAG-243 Information on earnings period is invalid |
| MAGNET_EDAG-298 This income has been reported with incorrect information and is invalid |
What do we use the information for
NAV uses information concerning salary and other benefits to calculate unemployment benefits and to check benefits such as sickness benefit, parental benefit, disability benefit and advance child maintenance payments. To obtain the correct basis for NAV benefits, you must separate out holiday pay.
The Norwegian Tax Administration uses information concerning salary and other benefits to assess income. The amount is aggregated with other benefits and transferred to the tax return.
Statistics Norway (SSB) uses the information for statistical purposes.
Applicable regulations
