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 2025 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.

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: 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.

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 2025 will not receive feriepenger in summer 2025, because they did not earn income in 2024 (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.

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 may feel like they are “getting a bonus” (May salary + feriepenger).

Be proactive — this can affect:

• Tax brackets

• Net monthly income

• Expectations

Clear communication here prevents dissatisfaction.

3. Parental Leave & Feriepenger

Employees accrue feriepenger only on salary paid before parental leave.

While on leave:

• NAV pays parental benefits

• No feriepenger accrues unless the employer provides salary top-ups

HR Tip:

When calculating feriepenger after parental leave, use the last full income year before leave.

4. Long-Term Sick Leave

Employees accrue feriepenger for the first:

• 48 working days of sick leave

After those 48 days:

• NAV covers sick pay

• No feriepenger accrues unless the employer voluntarily continues 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)

Employers must track this week and the related calculations 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 2024:

• 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.