A Quick Guide to Feriepenger

This blog covers everything from the fundamentals to the grey zones HR teams often deal with when it comes to feriepenger — including resignation timing, parental and sick leave implications, freelancers, part-year employees, and international hires.

Updated for 2025

In Norway, feriepenger (vacation pay) is more than just a perk — it’s a legally protected entitlement and a key aspect of employee compensation.

For those working in HR and Talent Acquisition, a clear grasp of feriepenger is essential for ensuring legal compliance, setting clear employee expectations, and navigating tricky edge cases. Hopefully, this article can help you wade through the grey zones with ease this summer.

What is Feriepenger?

Under the Norwegian Holiday Act (Ferieloven), employees earn the right to feriepenger the year after they’ve worked. These funds replace salary during vacation — usually in June or July — and are earned, not gifted. Employers are legally obligated to manage and disburse these funds accurately.

The law gives employees:

• 21 working days of vacation (4 weeks + 1 day)
• Most employers offer 5 full weeks (via collective agreements or company policy)

How is Feriepenger Calculated?

Base Calculation:

• 10.2% of holiday-eligible earnings (statutory minimum)
• 12.0% if the employer offers a fifth vacation week (most common)
• 12.5% or 14.3% for employees aged 60+, who are entitled to an extra week

Included in the Calculation:

• Base salary
• Shift differentials
• Overtime (if paid out, not time off in lieu)
• Commission-based earnings
• Performance bonuses tied to work output

Excluded from the Calculation:

• Previous year’s feriepenger
• Expense reimbursements
• Allowances not tied to work (e.g. gift cards)
• Severance pay (unless contractually agreed)

When and How is Feriepenger Paid?

Standard Practice:

• Paid out in June, replacing regular salary
• Amounts should appear on payslips throughout the year as “accrued feriepenger”
• Employees on vacation in other months (e.g. December) may request a prorated feriepenger payout then, though employers are not obligated to accommodate this unless agreed upon

Optional Practices:

• Some employers pay feriepenger monthly as part of salary (most common in startups and international companies). This is legal only if the employee still receives their full feriepenger entitlement at vacation time and if the employment contract clearly states this setup.

Edge Cases and Situational Considerations

1. New Employees Without Accrued Feriepenger

Employees hired in January 2025 won’t receive any feriepenger in summer 2025, as they didn’t earn salary in 2024. They’re still entitled to vacation time, but it will be unpaid.

Since they haven't accrued feriepenger, these employees can choose to work instead of taking holiday and in that way get paid. The same is true is someone has only accrued some vacation pay - they can then chose to only take out those vacation days that are covered by the feriepenger they get paid out.

HR Tip: Daily salary can be calculated by dividing annual salary by 260.

2. Resignations and Feriepenger Payouts

When an employee resigns or is terminated, they are entitles to all accrued feriepenger. This can be paid out with the final paycheck, or the employee can also agree with the Employer to have it paid out later.

I they have not been deduced for holiday yet (which normally is done June together with the payment of feriepenger), then the employee will be deducted for the days they have used so far that year. For example, if they resign before June they might be deduced for vacation days. But if they resign after June, then they might have been deducted for more days then they have used and will therefore get some days paid out.

Watch out for timing traps:

• If someone resigns just before June, they may appear to receive a “bonus” (May salary + feriepenger), which can affect tax brackets and net pay. Communicate clearly to manage expectations.

3. Parental Leave & Feriepenger

• Employees accrue feriepenger based on salary paid before parental leave.
• While on leave, they receive parental benefits from NAV, but no feriepenger accrues unless the employer tops up salary.

HR Tip: When calculating vacation pay after parental leave, use the last full income year prior to leave.

4. Long-Term Sick Leave

• Feriepenger accrues during the first 48 working days of sick leave.
• After that, NAV covers sick pay, but no feriepenger accrues unless the employer voluntarily covers this.

Common scenario: An employee is on sick leave for a full year — they will have very limited or no feriepenger the following year.

5. Employees Over 60

Employees turning 60 in a given year are entitled to:

• One additional week of vacation
• Extra feriepenger (2.3% of the base salary) for that week

The employer must track this separately and ensure the full amount is paid.

6. Freelancers and Contractors

• Feriepenger is only legally mandated for employees.
• Freelancers/contractors are responsible for managing their own vacation income, unless contractually stated otherwise.

HR Tip: Consider stating explicitly in freelancer contracts that feriepenger is not included — to avoid misunderstandings.

7. Temporary and Part-Year Employees

• They accrue feriepenger like any other employee, based on actual income earned.
• Employers must track and disburse this upon contract end.

Scenario: A summer intern works from June to August 2024. Their feriepenger (approx. 12%) must be paid out with their final paycheck unless the contract is extended.

8. Multiple Employers or Job Changes

If someone changes jobs mid-year, they will:

• Accrue feriepenger with both employers
• Receive separate payouts from each in June of the following year

HR Action: Ensure clear documentation is included in termination statements so employees can track their entitlements across employers.

Accounting, Payroll, and Pay-slip Requirements

• Feriepenger must be shown as an accruing liability in accounting systems
• Payslips must show:
  • Accrued amount year-to-date
  • Amount paid when disbursed
  • Which year’s earnings the feriepenger is based on

Wrap-Up

Feriepenger may seem straightforward at first glance, but HR professionals know the system contains plenty of nuance. Managing it correctly is about more than just compliance, it’s about building trust with your team and creating a transparent, supportive culture around compensation and time off.

Got Questions? Let’s Chat.

Need help adjusting your feriepenger policies or updating contracts for compliance? Reach out to us at hello@amby.com or follow us on LinkedIn for more insights.