NHO: Only one in ten Norwegian companies will use the wage support scheme

Kroner - euro - dollarPhoto: Jon Olav Nesvold / NTB

The new wage support scheme came into force in March. A low drop in turnover means that only one in ten companies say they will use it, according to the Confederation of Norwegian Enterprise (NHO).

The new scheme came into force on 15 March and is valid until the end of June. Companies in crisis can receive up to NOK 25,000 per month in support, per employee, which they put back to work after furlough.

But in the NHO’s latest membership survey, only 2%of the companies answered that they had used the scheme. Only 11% said they would use it.

“Those who do not want to use it stated that their fall in turnover is too low to qualify. The fact that only every tenth company will use the scheme does not necessarily mean that the scheme is bad or badly put together,” chief economist Øystein Dørum at the NHO said.

He pointed out that the scheme is intended to help the companies that are struggling the most and that had to lay off many employees. The goal is to stimulate them to take back employees earlier.

The survey also shows that half of the companies report lower turnover than normal.

“A majority of companies report a decline in activity from last year to last month. The bright spot is that a small minority expects an improvement in the next three months, in terms of turnover, prices, and employment,” Dørum added.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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