The starting point for the relevant monthly income
It is the earned income stated on the income report that forms the basis for the determination of the relevant monthly income.
Income resulting from the employee’s work
In order for a source of income to be included in the calculation of monthly income, it must be income that the employee has earned through work. The income must also have been lost due to occupational disablement.
Earned income and bonuses
Earned income means cash payments, such as fixed pay and hourly wages.
Bonuses directly related to the employee’s own input or performance shall be included in the calculation basis. It is a prerequisite that the bonus is not paid during the sickness absence. Bonuses include, for example, profit bonus, profit sharing and gratuities.
Percentage wages, commission and piece rate pay are not considered bonuses and should always be included in the calculation of the basis for sickness benefit.
Supplement for inconvenient working hours and inconvenience supplement for special working conditions
Some employees receive a supplement for inconvenient working hours or inconvenience supplement for special working conditions. Inconvenience supplements include shift supplements, rota supplements and foreign service supplements. The latter is a supplement paid to persons posted abroad. A supplement for inconvenient working hours and inconvenience supplement for special working conditions are considered to be part of the employee’s ordinary pay. These supplements must therefore be included in the calculation of the relevant monthly income.
Remuneration for moving public holidays and 1 and 17 May
Remuneration for moving public holidays and 1 and 17 May shall be included in the calculation of the monthly income.
Remuneration to cover expenses in connection with the execution of work shall be included in the calculation if they generate a profit. This profit is considered a part of the earned income. The profit is given the value used for advance tax deduction. It is the amount subject to tax deduction that the employer reports to the “a-ordning” that shall be included in the basis for sickness benefit.
Expenditure allowances include daily allowance in connection with work-related travel, car allowance, tool allowance and dirt allowance. Other expenditure allowances may also be included.
As a general rule, overtime pay should not be included as a part of the calculation basis. Overtime pay is income earned for work over and above ordinary working hours.
Remuneration for fixed overtime work must be reported to the “a-ordning” as a fixed supplement, and shall be included in the calculation basis.
Holiday pay and payment in kind
Holiday pay should not be included in the calculation of the relevant monthly income.
If holiday pay has been paid in lieu of normal pay or unpaid holiday leave has been taken in the calculation period, the calculation basis shall be set as the ordinary pay the person would have received if no holiday had been taken.
If a payment in kind stops from the first day of absence, the amount it represents shall be included in the calculation basis. This amount shall also be included when assessing whether there is a 25 per cent deviation.
If the payments in kind stop in the sick leave period, they shall be included in the sickness benefit calculation from the time they stop. Payments in kind are calculated using the value used for advance tax deduction. In order for lost payments in kind to be included in the calculation basis, the Norwegian Labour and Welfare Administration (NAV) must be notified of the loss.