The Norwegian government has proposed a new wage subsidy scheme.

Minister of Finance Trygve Slagsvold Vedum presented the main points of the scheme in the Norwegian parliament (Storting) on Friday night. 

Vedum said that since it takes time to make a sound, new arrangement, a proposition will not be presented to the Storting for consideration until January.

“And I am sure that a majority in this room will get an arrangement that is as good as it can be,” Vedum said.

Key facts about the wage subsidy scheme: 

* The scheme is aimed at companies that are directly or indirectly affected by national corona restrictions in their business area, such as table placement requirements, bar restrictions, or the like.

* Enterprises are considered to be directly affected if more than 40% of their turnover is limited by the corona regulations. They are considered to be indirectly affected if they still get more than 50% of their turnover from activities that are limited by the regulations.

* The support is paid to companies that can document a turnover drop of at least 20% due to strict infection control rules.

* Each company can receive up to NOK 30,000 in support per employee per month. The amount is adjusted according to how large the turnover of each business is.

* The minimum a company can be paid is NOK 3,000 per employee per month.

* Each company can receive a maximum of NOK 47 million in support per month from the scheme.

* Companies that receive support receive support for all their employees. The scheme also applies to apprentices (there is a separate rate for apprentices).

* There is a requirement for a layoff ban. A company that receives wage subsidies cannot lay off employees during the period in which it receives this support.

* The scheme will take effect from December 1 and will initially apply until January 2022.

* If the strict infection control measures persist, it may be relevant to extend the wage subsidy by one month, i.e., until February 2022.

* It is expected that the application portal could be opened during February and that the first payments be processed then. The Tax Administration is to administer the scheme.

* A reservation is made – the scheme has to be in line with the state aid regulations and approved by the EFTA Supervisory Body (Esa).

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

Do you have a news tip for Norway Today? We want to hear it. Get in touch at [email protected]