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Salary compensation scheme

Salary compensation scheme

Photo: Colourbox

Those who are laid off, including foreign students, are entitled to 20 days’ salary compensation. The Ministry of Labour and Social Affairs (ASD) has clearly stated that the scheme also includes foreign students.

The benefit is provided for 18 calendar days

The new benefit is not provided for working days, but for five days per week. The benefit is paid for the first 18 weekdays (i.e. the days Monday-Friday) after the employer period has ended (2 days is paid from the employer and 18 days from the state). This means that the period of salary compensation amounts to as many calendar days for fully laid-off staff as for partially laid-off staff.

This also means that a worker who is laid off from a part-time job, such as two days a week, receives the benefit of as many calendar days as one who works full time. The part-time fraction is not reflected in how many days they receive the benefit, but how high the benefit is per day.

Application and payment

The laid-off must apply to NAV in order to receive this benefit. In order for it to be possible to calculate the benefit properly, it is not practically possible for NAV to process the application until after it has expired 18 days from the end of the employer period.

NAV is working on a digital application and payment function that will be ready by the end of April / May 2020. We will update this news article with more information as soon as the digital application and payment function is in place.

The Government's press release explaining the salary compensation scheme (in extension in Norwegian) can be found here: https://www.regjeringen.no/no/aktuelt/lonnskompensasjon-til-permitterte/

The Ministry of Labour and Social Affairs (ASD) has clearly stated that the scheme also includes foreign students.