Unemployment benefit in Norway – what are the rules?

The Norwegian social welfare system, NAV, is widely recognized as one of the most developed and fair systems in the world. It provides the people of Norway with a wide range of social benefits that aim to ensure decent living conditions and equal opportunities for all. The basis of the Norwegian social welfare system is the principle of social solidarity. This means that all people in Norway are responsible for the well-being of others and collectively finance the welfare system through high taxes and social contributions. This allows the system to provide financial support and services to people who need help, regardless of their social or economic status.

Today we will write more about a specific branch of NAV, namely unemployment benefits. In Norway, unemployment benefits are an integral part of the Norwegian social welfare system. Norway strives to ensure decent living conditions for all citizens, including the unemployed.

Unemployment benefit (dagpenger) – who is entitled to it?

Although the Norwegian social security system ensures that all residents have access to support in certain life situations, certain benefits require certain requirements to be met. In the case of dagpenger, you must meet several conditions:

  1. Reduction of full-time employment by at least 50%
    The basic condition for receiving dagpenger is the loss of at least 50% of full-time employment. If you work in several places, the total working time in all these places must be reduced. When calculating the reduction, NAV assumes a maximum working week of 40 hours.
  2. Decrease in income
    The reduction in working hours must also affect your income. This means that you will not receive benefits if the reduction does not affect your earnings.
  3. Minimum income
    To meet the income requirements, you must have earned an income of at least NOK 177 (or 930 times G) in the last 1,5 months or NOK 12 (or 355 times G) in the last 860 months. The G value (Grunnbeløpet) is determined annually. Parental benefits, maternity benefits and pregnancy-related sickness benefits are also included in these calculations. Income from running a business is not taken into account.
  4. Ready to work
    You must be an active job seeker. This means that you usually need to be able to work at least part-time and be willing to work anywhere in Norway and attend job fairs.
  5. Residence in Norway
    Generally, you must reside in Norway and be a member of the social security system. In some cases, it is possible to apply for dagpenger even if you do not live in Norway, by transferring the benefit to another EU country - this can be done for a maximum of 12 months, for example when you are looking for a job in Poland.
  6. Age
    To receive unemployment benefits (dagpenger), you must be under 67 years of age. This benefit is available until the month in which you celebrate your 67th birthday.

Dagpenger – not only for those who are completely laid off

We may be entitled to unemployment benefits in Norway not only if we are completely unemployed, but also if we are temporarily laid off. What does it mean?

For example: there is a stagnation in the industry in which you work, which is why the employer has lost contracts. Unfortunately, there is no job for you because of this. If you are 100% employed, your employer would still have to pay you remuneration - which would be another financial loss for him. Therefore, in such a situation, the employer may send you for permittering, i.e. temporarily dismiss you. Then you are also entitled to dagpenger on the same terms as for people who are unemployed. Depending on your situation, you may receive full or partial benefits depending on the percentage of reduction in your working hours.

 

Other information

  1. Active labor market policies
    Norway also focuses on active labor market policies that aim to support unemployed people in finding work. Training programs, careers advice, internships and other forms of support are available to unemployed people to help them acquire new skills and improve their employability.
  2. Job search support
    The Norwegian social welfare system also offers support in finding a job. Unemployed people can benefit from the help of career advisors who help in creating CVs, writing cover letters, preparing for job interviews and other aspects related to job search.
  3. Activation programs
    Norway runs various activation programs that aim to support unemployed people in returning to the labor market. These programs include vocational training, community service, apprenticeships and other forms of activity that aim to increase employability.

If you have any questions about unemployment benefits, please contact us by e-mail: info@efirma.no or by phone: +47 21 38 38 21.