Section 10. Calculation of holiday pay

(1) (Basis for calculating holiday pay)
Holiday pay from an employer is calculated on the basis of wages paid in the qualifying year. Wages do not include payments to cover expenses for car travel, board, lodging and the like.
The following payments are not included in the basis for calculating holiday pay:
  1. a.
    holiday pay pursuant to the present Act, paid during the qualifying year,
  2. b.
    shares of net profits,
  3. c.
    regular payments earned and paid irrespective of absence of holiday, or
  4. d.
    the value of goods, services or other benefits other than payments in money. The value of full or partial board received as part of payment for work shall, however, be included in the basis for calculating holiday pay.
The basis on which holiday pay is calculated shall be given in the list of payments and deductions sent to the employee pursuant to section 6-17 (3) of the Tax Assessment Act.1
(2) (The general percentage rate)
An employee is entitled to holiday pay from his employer amounting to 10.2 per cent of the basis on which holiday pay is calculated (cf. (1)).
(3) (Higher rate for employees over the age of 60)
For employees who are over 60 years of age and entitled to extra holidays pursuant to section 5 (2), the rate rises by 2.3 percentage points.
Holiday pay pursuant to the first paragraph is not paid in respect of that part of the basis on which holiday pay is calculated which exceeds 6 times the basic amount2 in the National Insurance system. The basic amount for the purpose of this calculation shall be the amount applicable on 31 December of the qualifying year. If an employee resigns in the course of the qualifying year, the calculation shall be based on the basic amount applicable at the resignation date.
(4) (Earning holiday pay entitlements during illness, parental leave, etc.)
Wages pursuant to (1) also include sickness benefit paid by an employer during the employer's period. The same applies to sickness benefit for up to 10 days paid by an employer in the event of children's illness, cf. chapter 9 of the National Insurance Act.
The National Insurance pays holiday pay on the basis of:
  1. a.
    sickness benefit paid by the National Insurance for up to 48 days in each qualifying year, cf. section 8-33 of the National Insurance Act. In addition, the National Insurance pays holiday pay based on sickness benefit refunded by the National Insurance to the employer in respect of employees who are excepted from the rules concerning employers' periods pursuant to section 8-20, first paragraph, of the National Insurance Act, or in respect of absence for longer than 10 days in the event of children's illness pursuant to section 9-8, cf. section 9-9, of the National Insurance Act. The National Insurance also pays holiday pay based on up to 12 weeks (60 sickness benefit days) of sickness benefit relating to children's illness pursuant to section 9-17 of the National Insurance Act.
  2. b.
    pregnancy benefit paid to employees for up to 64 days of the benefit period, cf. section 14-4 of the National Insurance Act.
  3. c.
    parental benefit paid to employees for up to 12 weeks at the full rate or for up to 15 weeks at 80 per cent of the full rate, cf. section 14-8 of the National Insurance Act.
(5) (Qualifying for holiday pay during compulsory military and civilian service)
An employee who has worked for an employer for at least 3 months qualifies for holiday pay from that employer during unpaid absence owing to:
  1. a.
    compulsory military service pursuant to the Act of 17 July 1953 No. 29 relating to compulsory national service,
  2. b.
    compulsory service in the Civil Defence or Home Guard for up to a total of 3 months each qualifying year.
The holiday pay is calculated on the basis of the employee's sickness benefit basis pursuant to sections 8-28 to 8-30 of the National Insurance Act on the date when the leave begins.
An employee who has not been employed in the enterprise following his absence may not claim holiday pay pursuant to the first paragraph, unless his absence is due to notice by the employer or health reasons.
(6) (Departure)
The rules in this Section concerning the calculation of holiday pay from employers may be departed from in a collective agreement.
1 Act of 13 June 1980 No. 24 (repealed) (now see the Act of 27 May 2016 No. 14).
2 basic amount = grunnbeløp. The National Insurance system in Norway operates with a «grunnbeløp» which is periodically adjusted and upon which the calculation of social security benefits is based.