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Payment of holiday pay

Basically, holiday is leisure time without pay. The objective of holiday pay is to compensate for the lack of pay when you take holidays.

You earn holiday pay entitlement the year prior to taking holiday, i.e. in the earning year. The calendar year you actually take holiday is called holiday year. If you have not worked in the earning year, you are nevertheless entitled to take holidays, however without holiday pay.


When is holiday pay paid?

  • Holiday pay is paid in June, regardless of when the holiday is actually taken. At the same time, a holiday deduction is made for the number of days you are to take paid holiday leave. This is called holiday pay settlement, see the holiday pay settlement in the June salary.
  • When leaving UiO, holiday pay is paid out as final settlement. Payment is made after the last salary payment, ie the first ordinary payday after leaving UiO.
  • For the exact payment date see the payroll schedule.

How much holiday pay are you entitled to?

  • Holiday pay is calculated as 12% of the accrual basis.
  • From the year you turn 59, you earn additional holiday pay of 2.3%  of the accrual basis, limited upwards to 6 times the National Insurance Scheme’s basic amount.
  • The accrual basis includes all the amounts that have been disbursed to you as work remuneration (e.g. salary, sickness benefits) in the earning year. Disbursements concerning travel expenses, lodging and holiday pay are not included in this calculation.
  • The accrual basis is stated on the annual income statement of the earning year. Holiday pay earned last year and in the current year is also stated on your payslips.

Holiday deduction for employees on a monthly salary

  • Employees on a monthly salary and with fully earned holiday pay are deducted the full quota «Paid holiday leave», normally 5 weeks.
  • Employees over 60 who have an accrual basis for holiday pay which exceeds 6 times the Norwegian social security base rate (G) are allotted a reduced quota «Paid holiday leave» as they do not receive full compensation for the loss of income in the extra holiday week.
  • New employees who joined UiO in the previous year have earned holiday pay to partially cover the quota «Paid holiday leave» that leads to a holiday deduction in June.

  • New employees who joined UiO in the current year are only allotted the quota «Unpaid holiday leave», which does not lead to a holiday deduction in June. When using this quota, a salary deduction is made on the next paycheck.

  • For part-time employees a holiday deduction is made based on the quota «Paid holiday leave».

Holiday deduction for hourly-paid employees

  • Accrued holiday pay is paid in June.

  • Employees with hourly pay (voucher wages) do not have a holiday allowance and are not paid for the days they take holiday.

Holiday pay settlement in the June salary

  • The holiday pay settlement is paid out on the basis of a one-time calculation in June.
  • Holidays are leisure time without pay. This implies that employers who pay 12 monthly salaries shall deduct salary when you take holidays. However, this is not done every time you take holidays but for the year as a whole in June where your salary is deducted for the number of holiday days you are obliged to take.
  • The entire holiday entitlement (25 work days for employees with a five-day work week) amounts to more than a  calendar month (ca. 22 work days). Therefore, the holiday deduction normally is higher than the monthly salary.
  • Holiday pay normally exceeds holiday deduction. The gross salary in June normally is larger than a monthly salary if you have earned full holiday entitlement in the previous year.
  •  If you do not have full accrual and thus have been allotted a quota «Unpaid holiday leave», you will be deducted for these holiday days as they are taken.
  • Holiday pay is paid without tax deduction. Exceptions apply to additional holiday pay for persons over the age of 60.

Extra holiday pay for employees over 60

  • From the year you turn 59, you earn additional holiday pay of 2.3%  of the accrual basis (limited upwards to 6 times the National Insurance Scheme’s basic amount). For employees with a holiday pay base of more than 6 G, the extra holiday pay will not fully cover the salary loss in the extra holiday week. Where this is the case, you may choose not to take your non-covered holiday days.
  • Holiday pay relating to this extra week of holiday is subject to tax deduction.

Calculation examples for June salary

Questions?

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Published Apr. 28, 2015 2:53 PM - Last modified Apr. 26, 2019 1:41 PM