Sick pay regulations for employers in Norway

Foreign companies sending employees to work in Norway are subject to Norwegian employment law — and sick pay is one of the areas with the strictest employer obligations. Getting eligibility, the calculation basis, or the reimbursement deadline wrong can expose your company to unnecessary liability. This article outlines the key rules employers need to know about Norway's sick pay system and how you can effectively manage these obligations.

Who is entitled to sick pay in Norway?

Employees who have been employed for at least four weeks before going on sick leave, are entitled to sick pay in accordance with Norwegian regulations. If employment is temporarily interrupted for more than 14 days, the employer is no longer obligated to provide sick pay.

Further, employees must reside in Norway, another EEA country, or a country or area with a concluded bi- or multilateral social security agreement to obtain the right to sick pay.

How long is the employer responsible for sick pay?

Under the Norwegian Social Security Act, employers are required to cover sick pay for the first 16 days of an employee’s sickness absence. This applies to all employees entitled to sick pay under The Norwegian Social Security Act.

How is sick pay calculated?

Sick pay during the first 16 days is calculated based on the employee’s regular salary for the last three months before sick leave. If the employee has had a permanent salary increase within the last three months, the increased amount should be the basis for the calculations.

Sick pay calculations are capped, regardless of actual salary:

When does the National Insurance Scheme take over sick pay?

After the initial 16 days, the National Insurance Scheme takes over the responsibility of sick pay. The Scheme covers up to 100% of the employee's salary but only up to the 6G cap mentioned above. 

If the employer advances sick pay on behalf of the National Insurance Scheme, it's important to claim reimbursement within three months. Reimbursement is also limited to the 6G cap.

Also read: Norwegian National Insurance Scheme

Does holiday pay apply to sick pay?

The National Insurance Scheme covers holiday pay of sick pay for the first 48 days of sick leave, calculated to 10,2%.

If the employer advances sick pay from the National Insurance Scheme, note that reimbursement of the holiday pay portion is also limited.

How long can an employee receive sick pay?

Employees are entitled to sick pay for up to 12 months. Employers need to monitor the duration of sick leave closely to stay within the statutory limit and keep their own records up to date.

What does effective sick leave management involve?

Effective sick leave management involves maintaining accurate records, communicating clearly with employees about their rights and obligations, and providing support where necessary.

It is also mandatory for employers to ensure systematic prevention and follow-up of absence of employees due to sickness.

Get help understanding and managing sick pay for your employers

For foreign employers, managing sick pay correctly from day one is key to staying compliant with Norwegian employment law and avoiding unnecessary liability. At Aider Legal, we help foreign companies navigate Norway's sick pay system, ensuring a smooth and compliant process every step of the way. If you need assistance, feel free to contact us.