Holiday pay in Norway is one of those topics that sounds simple until you start a new job or plan a long summer break and realize there are rules behind the scenes. As someone who grew up here and has helped a lot of newcomers navigate Norwegian payroll, I’ll walk you through how holiday pay is calculated, when it is paid, and the small details that save you from surprises in June.
Holiday pay in Norway replaces your salary while you take vacation. It is not an extra bonus but money you earn the year before, set aside so you can take paid time off. The legal minimum accrual is 10.2 percent of last year’s qualifying pay. Many employers give five weeks of vacation through agreements, which usually means 12 percent. If you are 60 or older, you are entitled to an extra week off and an extra 2.3 percent, so your total rate is either 12.5 percent or 14.3 percent depending on whether you have 4 weeks plus 1 day or 5 weeks.
If you just want the short version: you earn holiday pay this year and typically receive it next year, most often in June. Your June payslip will often show only holiday pay and no ordinary salary. The percentage you get depends on your vacation entitlement and age bracket. The number that matters is your holiday pay rate multiplied by last year’s earnings that qualify for holiday pay.
Let’s dig into the details so you can plan your time off with confidence.
What Holiday Pay In Norway Actually Is
The purpose is simple. Norway wants workers to take time off without losing income, so you accrue holiday pay during the earning year and receive it during the holiday year. The system is set by the Holiday Act and reinforced by collective agreements and company policies.
Two terms to keep in mind:
- Earning year. The calendar year in which you earn the right to holiday pay.
- Holiday year. The following year when you take your vacation and receive the holiday pay.
Holiday pay replaces salary while you are on holiday. This is why many employers do not pay a normal monthly salary in June. Instead you receive a payout of the holiday pay you earned the year before, and the amount should roughly correspond to the income you would have had during your vacation time.
How The Percentage Is Set
Think of the percentage as your accrual rate. It is applied to last year’s qualifying earnings.
- Standard minimum. 10.2 percent, which corresponds to 4 weeks plus 1 day of statutory vacation.
- Common company or union standard. 12 percent, which matches 5 full weeks of vacation. Many workplaces in Norway use this.
- Over 60 years old. Add 2.3 percentage points for the extra week. This gives 12.5 percent if your base is 10.2 percent, or 14.3 percent if your base is 12 percent.
If you are not sure which rate applies to you, check your employment contract or your HR portal. It is usually listed clearly.
What Counts Toward Holiday Pay
Your holiday pay is calculated on the previous year’s qualifying pay, sometimes called the holiday pay base. In most cases this includes:
- Ordinary salary and hourly wages
- Overtime supplements and shift allowances
- Cash bonuses that are part of your pay
It does not include last year’s holiday pay itself, expense reimbursements, or one-off payments that are not considered remuneration for work. If you are unsure whether a specific payment counts, your December payslip often shows the holiday pay base in a separate line. That number is what the percentage is applied to.
When You Receive Holiday Pay
Most Norwegian employers pay holiday pay in June. Some choose May or another month for operational reasons, but June is most common. Three patterns you might see:
- June without ordinary salary. Your payslip shows only holiday pay, plus any additions like overtime that happened in June.
- Split payouts. If you take vacation in several chunks, some employers let you take corresponding holiday pay with each period. Others still do the big June payout.
- Payment on termination. If you leave a job, you are usually paid all accrued and unpaid holiday pay with your final paycheck. Your new employer will then withhold salary when you take vacation in the current holiday year, since they have not accrued holiday pay for you yet.
If you start a job midyear, your first summer may feel odd. You will not have much holiday pay accrued yet. Many people take fewer days that first year or plan around the cash flow.
Holiday Pay And Taxes
Here is the part that trips up newcomers. Holiday pay is taxable income in Norway, but the withholding pattern is special. In the main holiday month, many employers do not deduct tax from the holiday pay. Your tax card and withholding table are built to account for this, so the total tax for the year should still come out right.
Two practical tips:
- Do not treat June as free money. It is your vacation salary, just paid in a lump. Overspending in June can make July and August feel tight when regular withholding resumes.
- If you change jobs midyear or have unusual income patterns, keep an eye on your annual tax estimate in the tax portal to avoid a surprise at the end of the year.
Extra Week For Employees Over 60
From the year you turn 60, you get an extra week of vacation and a higher holiday pay rate. You can usually choose when to take that extra week, but agree with your employer so staffing is covered. The additional 2.3 percent in holiday pay is meant to cover that extra week.
If your employer uses 5 weeks of vacation for everyone, your total rate will often be 14.3 percent. If your workplace follows only the statutory minimum, your total rate will be 12.5 percent. Check your contract so you know which total applies to you.
What If You Are On Sick Leave, Parental Leave, Or Other Benefits
Norwegian rules aim to protect time off and income, but there are limits. In broad terms:
- Periods with regular salary from your employer accrue holiday pay as normal.
- Periods where you receive benefits from NAV may generate some holiday pay, often with caps and special time limits.
- Long absences can reduce the base for next year’s holiday pay.
Because the specifics depend on the type and length of leave, clarify with HR early. It is much easier to plan your summer when you know what accrual you have.
Part-Time, Hourly, And Variable Income
The system works the same. Your holiday pay rate applies to your qualifying earnings from the previous year, whatever those earnings were. If you are hourly with big seasonal swings, expect holiday pay to mirror that variability. One practical move is to check your holiday pay base each quarter so you are not surprised next summer.
For shift workers, the supplements count in most cases, which helps even out the difference if your holiday falls in a month with fewer shifts.
Contractors And The Self-Employed
If you invoice as a contractor or run your own sole proprietorship, the statutory holiday pay rules do not apply the same way as they do for employees. You build your own buffer. Price your services to include an allowance for paid time off, and transfer that percentage into a savings account every month. A common way is to mirror the 12 percent standard so you can afford to be off a few weeks without stressing about invoices.
How To Read Your Payslip
Norwegian payslips are structured, but you need to know where to look.
- In December or on your annual summary, find the line called holiday pay base or similar. That is the sum used for next year’s calculation.
- In June, check that the percentage and the base match your expectations. The payslip should show the rate used, like 12.0 percent or 10.2 percent, and the total payout.
- If you are over 60, you should also see the extra rate or a separate line related to the additional week.
If something looks off, ask payroll. Mistakes are rare, and when they happen it is usually a missing bonus line or a misunderstanding about the agreed vacation length.
Worked Examples
Example 1. Standard five-week vacation
- Last year’s qualifying earnings: 600,000 NOK
- Rate: 12 percent
- Holiday pay: 72,000 NOK
In June, you might receive around 72,000 NOK and no ordinary salary. If you normally make 50,000 NOK per month before tax, that June payout covers your vacation time and then some.
Example 2. Statutory minimum vacation
- Last year’s qualifying earnings: 480,000 NOK
- Rate: 10.2 percent
- Holiday pay: 48,960 NOK
Your June payout would look like a normal month’s salary in size if your monthly pay is around 40,000 to 45,000 NOK.
Example 3. Employee aged 60 with five weeks
- Last year’s qualifying earnings: 650,000 NOK
- Rate: 14.3 percent
- Holiday pay: 92,950 NOK
You would also schedule an extra vacation week, typically after coordinating with your manager.
Planning Tips From Local Practice
A few things I have seen help colleagues and readers year after year:
- Check your rate every January. Contracts change, and clarity early in the year avoids last minute panic.
- Keep a small buffer. June can be a big payout, but the rest of the summer may include child care costs, travel, and fewer overtime opportunities.
- If you switch jobs, set aside cash. You will receive accrued holiday pay from your previous employer on exit, but your new employer will still withhold salary when you actually take vacation. The calendar timing can create a temporary gap.
- Use the tax portal midyear. If you see that the no-withholding month in June leaves you short later, adjust your tax card slightly rather than waiting for a correction in the final tax settlement.
Common Questions
Can holiday pay be paid out at another time than June
Yes, if your employer’s routines or your collective agreement specify a different month, that is allowed. The law cares more about you actually getting paid when you take vacation than the specific month of payout.
Do bonuses and overtime count
They usually do, because they are remuneration for work. Holiday pay from last year does not count in the base for this year.
What if I do not take all my vacation
Unused statutory vacation generally carries over by agreement, and the associated holiday pay follows the timing rules used by your employer. This is one to coordinate with HR before year end so nothing goes missing.
Can I ask for split payout
Many employers are flexible. If you take a week in March and three weeks in July, it is common to align the payout with when you actually take the days, or just take the large June payout and budget accordingly.
Norway’s holiday system is designed to make real rest financially possible. Once you know your rate and your base, the math is straightforward. The trick is staying aware of timing when you change jobs, take long leaves, or have big swings in income. With a little planning, your holiday pay does exactly what it is meant to do.