Everything you need to know about rules, calculations, payouts, and tricky HR scenarios in Norway.

In Norway, feriepenger (vacation pay) is not just a benefit, it is a legally protected part of employee compensation governed by Ferieloven (Norwegian Holiday Act). For HR teams, payroll managers, and startup founders, understanding how feriepenger works is essential to staying compliant, avoiding payroll mistakes, and setting clear expectations with employees.

This updated 2026 guide walks through the fundamentals, the calculations, and the common grey zones employers face, including resignations, new hires, parental leave, sick leave, freelancers, and part-year employees. One thing that is new since last year, is the long-running question of whether Norway would scrap the earn-one-year model or not. And we have the answer.

What Are Feriepenger?

Under Ferieloven, employees earn feriepenger one year and receive them the next. These funds replace salary while the employee is on holiday (most commonly June/July).

Vacation Entitlements

• Statutory minimum: 25 virkedager under the Holiday Act, which counts a six-day week including Saturday. On a normal five-day week, that is 21 working days (4 weeks + 1 day).

• Most common standard: 5 full weeks (via agreement or policy)

• Employees aged 60+ receive one additional week

How Feriepenger Are Calculated

Base Calculation Rates

• 10.2% of holiday-eligible income (statutory minimum)

• 12.0% when the employer offers a fifth vacation week (most common)

• 12.5% or 14.3% for employees 60+ (extra week)

Included in Holiday-Eligible Earnings

These count toward feriepenger:

• Base salary

• Shift differentials

• Paid overtime (not time-off-in-lieu)

• Commission

• Performance bonuses tied to work output

What Is Not Included

These do not qualify:

• Feriepenger from previous years

• Reimbursements and non-work allowances

• Gift cards, welfare gifts

• Severance (unless contractually agreed)

When Are Feriepenger Paid Out?

Standard Practice (Most Employers)

• Paid in June

• Replaces regular salary for that month

• Payslips must show year-to-date accrued feriepenger throughout the year

Employees may request feriepenger in other months if they take vacation outside of summer, but employers are not obligated to accommodate unless contractually agreed.

A quick word on tax, because this is where the confusion starts. Feriepenger is taxable income, so it does not escape tax. But in the holiday year, it is paid without withholding that month, because the tax has already been spread across your other paychecks during the year. That is why June feels tax-free. It isn't, you paid the tax in the other eleven months.

The exception that catches people out: feriepenger paid out in the same year it was earned, most commonly on resignation, is taxed as normal at payout. More on that below.

Alternative Monthly Payouts

Some startups and international companies pay feriepenger monthly as part of salary. This is legal only if:

1. The contract explicitly states this setup, and

2. The employee still receives their full vacation pay entitlement during their vacation period

Common Edge Cases Employers Must Understand

Below are the situations HR teams most often struggle with, where mistakes easily happen.

1. New Employees With No Accrued Feriepenger

Employees who start in January 2026 will not receive feriepenger in summer 2026, because they did not earn income in 2025 (the accrual year).

They still have a legal right to vacation, but it will be unpaid unless you offer paid vacation as a benefit.

Employees may:

• Choose to work instead of taking unpaid vacation

• Or take only the days covered by accrued feriepenger (if they worked part of the previous year)

HR Tip:

Daily salary ≈ annual salary ÷ 260.

This earn-one-year-take-the-next model has been under real pressure. ESA, the EFTA Surveillance Authority, pushed Norway on whether denying first-year employees paid leave squares with the EU Working Time Directive, and the government opened a review. As of late 2025, the Arbeids- og inkluderingsdepartementet concluded it will not change the Holiday Act for now. So the rule above still stands, but it is a live question, and worth watching rather than treating as permanent.

2. Resignations & Feriepenger Payouts

When an employee resigns or is terminated, they are entitled to all accrued feriepenger, no exceptions.

Employers must:

• Pay it out with the final paycheck, or

• Agree on a later payout date (allowed by law if both parties agree)

Important Deduction Rules

If the employee has already been deducted for vacation days in June:

• If they resign before June, they may be deducted for days already used

• If they resign after June, they may receive extra days paid out if too many were deducted earlier

Payroll Warning: Timing Matters

Employees who resign in May or early June can feel like they are “getting a bonus” as it is May salary plus feriepenger. They usually are not. Because this payout lands in the same year the money was earned, it is taxed as normal income, not paid tax-free the way a holiday-year payout is.

That single fact reshapes the take-home number. Be proactive about it. It affects:

• Tax expectations

• Net monthly income

• General "where did half of it go" frustration

Clear communication here prevents dissatisfaction.

3. Parental Leave & Feriepenger

This one is widely misunderstood. It is not true that no feriepenger accrues during parental leave.

• The employer accrues feriepenger on salary paid before the leave, plus any salary top-ups the employer chooses to pay during it.

• NAV pays feriepenger on the parental benefit itself, at 10.2% on the first 12 weeks of the period if you took 100% foreldrepenger, or the first 15 weeks if you took 80%. NAV pays this out in May the following year.

• Beyond those weeks, nothing further accrues unless the employer continues paying salary.

HR Tip: When estimating feriepenger after a long leave, use the last full income year before the leave as your reference point, and remember the NAV portion is real, just capped.

4. Long-Term Sick Leave

Feriepenger accrues in two parts:

• The first 16 days (the employer period): the employer pays sick pay and accrues feriepenger on it.

• The next 48 sick-pay days per accrual year: NAV covers the feriepenger, at 10.2% (12.5% for employees who turned 59 that year).

After that, nothing accrues unless the employer voluntarily keeps paying salary.

Typical Scenario

An employee on sick leave for an entire year will have little or no feriepenger the following summer. Communicate this early to avoid confusion.

5. Employees Over 60

Employees turning 60 in a given year are legally entitled to:

• One extra week of vacation

• Extra feriepenger equal to 2.3% of salary (on eligible earnings)

Two details that are easy to get wrong:

• There is a 6G cap on the extra 2.3%. It only applies to the part of the basis up to six times the National Insurance base amount, NOK 819,294 from 1 May 2026. Income above that does not earn the extra 2.3%. Note: this cap is only on the 2.3% top-up. The ordinary 10.2% or 12% has no such ceiling, which is a common misconception.

• The extra 2.3% is taxed at payout, withholding applies to it even in the holiday year, unlike the rest of feriepenger.

Accrual of the extra amount starts the year the employee turns 59, so it is available to cover the extra week the year they turn 60. Track this week and its calculation separately.

6. Freelancers & Contractors

Feriepenger is legally required only for employees.

Freelancers:

• Manage their own vacation pay

• Should receive clear contract language stating that feriepenger is not included

HR Tip: Add a standard clause to all freelancer contracts to avoid misunderstandings.

7. Temporary, Part-Time, and Seasonal Employees

These employees accrue feriepenger like any other employee — based on income earned during their employment.

Example Scenario

A summer intern working June–August 2025:

• Accrues approx. 12% feriepenger

• Should receive this with their final paycheck, unless their contract continues into the next year

8. Employees With Multiple Employers

Employees switching jobs mid-year:

• Accrue feriepenger from each employer

• Receive separate payouts the following June

Employer Responsibility:

Termination letters should clearly state how much feriepenger has been accrued and will be paid out.

Accounting, Payroll & Payslip Requirements

To remain compliant, employers must ensure:

Accounting

• Feriepenger must appear as a liability in the balance sheet

Payslips Must Show

• Year-to-date accrued feriepenger

• Feriepenger paid when disbursed

• The income year the payout is based on

This transparency is required by Norwegian law.

Quick Clarification Table

Feriepenger may seem simple on paper, but in practice, HR teams deal with plenty of nuance, especially when it comes to resignations, parental leave, long-term sick leave, and cross-year calculations.

Managing feriepenger correctly is not just about compliance. It builds trust, provides transparency, and ensures employees feel supported and informed about their compensation.

Need Help?

If you need support updating contracts, payroll processes, or feriepenger policies, reach out to us at hello@amby.com or follow us on LinkedIn for more Nordic HR insights.