Changes to NAV’s payments of holiday benefits

NAVLogo NAV. Photo Norway Today Media

If you receive holiday benefits from NAV, there are changed payout routines from this year.

The changes apply to sickness benefits, parental benefits, maternity benefits, health care costs, tuition fees, and care expenses.

When will the money arrive?

Holiday pay will be paid by May the 25th. Make sure you have entered the correct bank account number in the ‘Your NAV’ section of NAV’s website to avoid payment delays.

What are the changes?

Previously, holiday benefits from NAV came as two payments. Now the payments will be joined together and paid out in one lump sum.

If you receive one of the above-mentioned benefits from NAV, your holiday pay will be on top of your usual, performance payment, and your payout will be higher than usual this month.

Draw in holiday pay

There are no longer exemptions for holiday payment benefits. If there are deductions due because of payroll requirements, for example, because you owe taxes, you will receive the deduction from the holiday pay.

Holiday pay is now regarded as pay, and therefore deductions will be made as for other wages.

Previously, systematic barriers to NAV have meant that the holiday money was paid out without deductions.

This is now changing, so that statutory deductions will be made during the year’s payments of holiday pay. (Section 11, seventh paragraph of the Holidays Act cf. Working Environment Act section 14-15 regulates the right to deduct from holiday allowances.)

Holiday pay is mainly exempt from advance payments, with the exception of holiday pay for persons who receive a Svalbard tax. (For Svalbard tax, advance payments shall be made with a percentage of the gross value of the benefit cf. the Svalbard Tax Act § 3-1.)

Why the change?

Earlier, NAV recorded accounts of paid benefits at each NAV office individually. Now they have a central accounting system which is adapted to municipal reforms, and a simplification for NAV, though it entailed a change to holiday benefit payments.

 

Source: Norway Today / Nav

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