Salary compensation for persons who are laid-off

What is salary compensation?

Wage compensation was a benefit to ensure that those who were laid off during the corona situation received wages until they could receive unemployment benefits. NAV paid wage compensation to those made redundant from day 3 to day 20 of the lay-off. Payment was either as a refund to the employer or directly to the employee where the employer did not pay. The salary compensation benefit has now been discontinued.

Postpayment of the basic amount in the national insurance (G amount)

When the basic amount in the national insurance is changed, it results in an increase in salary compensation and several other financial supports from NAV. Due to the pandemic, the new basic amount for 2020 was not determined until September 2020, but with effect from 1 May 2020.

Those who were paid wage compensation before the basic amount was changed will be repaid according to the new basic amount for 2020. We will pay this in february and march 2023. The payment information from the bank will state that the payment applies to a change in the basic amount.

To pay the late payment, we have collected your tax card and we will deduct tax as late payment. Read more about tax deductions on late payments.

Have you recently received wage compensation and are wondering what it applies to?

At the start of the pandemic, it was unclear when unemployment benefits would start after the wage compensation. This led to unemployment benefits being started too late for some. Then there was a period between the last day of wage compensation and the first day of unemployment benefit where the laid-off person did not receive unemployment benefit.

The regulations stipulate that salary compensation can be paid as compensation for missing unemployment benefits on these days. We will pay this wage compensation in December 2022. We will send a letter to everyone affected.

The salary compensation benefit has been discontinued

The benefit has now been discontinued, under this section you will find older information describing how the benefit worked when it applied.

Who does the benefit apply to?

Salary compensation applies to persons who are laid off and have not received advance wages from their employer.

The benefit applies fully to workers who were laid off on 20 March 2020 or later. Those who were laid off before 20 March are covered by previous regulations up to and including 19 March. From 20 March, the new temporary regulations will also apply to them. NAV will pay for any remaining days of days 3-20 during the lay-off period.

Salary compensation benefit applies regardless of whether or not you are entitled to unemployment benefit. It is also not a requirement to be registered as a job seeker. The scheme does not apply to employees in the fishing industry, which has other rules.

You can only receive wage compensation once for a lay-off by the same employer.

What do you have to do to get salary compensation?

It is your employer who reports information, so that those who are laid off do not have to apply. We will pay you the money based on the information provided by your employer. Your salary compensation will be automatically processed.

If you have any questions about whether your employer has submitted the information, please contact your employer.

If an employer does not provide us with the necessary information, you can apply to NAV for salary compensation yourself.

The deadline for filing claims for salary compensation was 31.12.2020. However, if neither you nor your employer filed a claim for wage compensation for you, you may be entitled to unemployment benefits during the period in which you did not receive salary compensation. Send us a message on nav.no and ask us to reconsider the grant date for unemployment benefits.

Go to the informationpage about repayment of advances on unemployment benefits.

When will the money be paid out?

We will issue the payment within 5-7 working days after your employer has submitted the necessary information to us.

You can verify that you have registered your correct account number here.

How much are you entitled to?

NAV will cover your wages from the third day after you were laid off, for a maximum of 18 days. For the days NAV is to cover, you are entitled to full pay up to 6G (1G = the basic amount in the National Insurance scheme).

We deduct tax on the amount before we issue the payment.

Once your employer has submitted information to us, you will receive a decision that you will find at nav.no (log on). Here we explain how the amount you will be paid is calculated. We will notify you when the decision is available.

How long can you receive salary compensation?

The employer covers the first 2 days after the start of the lay-off. NAV then covers the next 18 calendar days, except Saturdays and Sundays. NAV covers the same number of days for persons who are completely laid off as for persons who are partially laid off.

How do we calculate the amount you will be paid?

We pay compensation based on this information from your employer:

• the date you were laid off

• whether your employer has paid advance wages to you after you were laid off
• your pay per day, as calculated by your employer
• the days you have worked while you were laid off
• whether you have been paid care benefit or sickness benefit while you were laid off

You can read the temporary regulations relating to salary compensation here.

You must have been laid off on or before 31 August

Many who are laid off around 1 September may be in doubt as to whether they should have wage compensation or 10 days of pay from the employer.

Your employer notifies you of the lay-off and the notice states when the lay-off will start. If the lay-off starts on 31 August 2020 or before, you must have 2 days' salary from the employer and salary compensation from NAV for 18 days.

If the notice states that the lay-off starts on 1 September or later, you shall have 10 days' salary from the employer.

When we look at whether you are entitled to salary compensation from NAV or not, we look at the lay-offnotice regardless of whether you have been ill during the notice period.

You are not entitled to both wage compensation and 10 days of wage obligation.

Have you received an advance on unemployment benefits?

If you have received an advance on unemployment benefit, this will not be deducted from the disbursement.

Are you partially laid off?

If you are partially laid off, you are entitled to salary compensation for the part you are laid off.

Are you on sick leave?

You will not receive salary compensation when you are 100 per cent on sick leave. This is because you will receive sickness benefit. Read more about layoffs when you are on sick leave here.

Do you need to pay back salary compensation?

NAV sends information about repayment to those who have been paid too much salary compensation.

If you receive too much salary compensation, you can pay back the excess amount on your own initiative. Pay the relevant amount to account number 6345.05.30982. Mark the payment with your national identity number + “lønnskompensasjon” (salary compensation). Make sure you enter your 11-digit national identity number correctly. If you are making a transfer from a foreign bank account, use IBAN: NO8163450530982 and SWIFT: NDEANOKK.

Once we have received the money, the payment will appear on your payments overview web page “Dine utbetalinger”, which requires log-in. You will see that the amount has been deducted from your account. You can also ask for a receipt for the payment from your bank.

Have you received an advance on unemployment benefits?

Advances on unemployment benefits and salary compensation are two different benefits. If you are to pay back on both benefits, we will inform you in separate letters.