Deduction from salary for holiday
Concerns deductions from salary for holiday if you pay holiday pay as a lump sum or on an ongoing basis.
Brief information about deductions from salary for holiday
Specify deductions from salary for holiday when you pay all the holiday pay that is due collectively in a single month and make deductions from salary.
You can also specify deductions from salary for holiday when:
- you pay holiday pay on an ongoing basis as the holiday is taken and make deductions from salary for the holiday that is taken
- the employee takes holiday but has not accrued holiday pay and you make deductions from salary.
Many employers pay holiday pay in a single lump sum in May or June and make a single deduction from the employee’s salary covering all holiday, so that they can pay the ordinary salary amount during the rest of the year.
Holiday under a collective agreement
For employees whose holiday is specified in a collective agreement, the salary during the holiday will exceed the monthly salary. With six-day weeks and five weeks’ holiday, employers who pay holiday pay collectively must deduct salary for 30 working days, while the monthly salary covers 26 working days.
Five-day week
With five-day weeks and five weeks’ holiday, employers must deduct salary for 25 working days, while the monthly salary covers 22 working days. Such deductions from salary for holiday should not be reported as a negative fixed salary, and the total holiday pay should also not be reduced by such deductions. You must therefore report such deductions from salary for holiday here.
The information you must provide
| Amount | - NOK x |
| Type of salary or benefit | Cash benefit, deduction from salary for holiday |
| Subject to withholding tax | Yes |
| Basis for employer's national insurance contributions | Yes/No |
| Tax and contribution rules | If relevant |
| Additional information | If relevant |
Amount
Specify the gross amount.
The amount you must specify under “deductions from salary for holiday” is negative and must only be used in combination with a positive amount in fixed salary (or housing compensation supplement if the deduction is also taken from this).
You must only specify a positive amount for “deductions from salary for holiday” if you need to correct a previous a-melding. See “correcting errors”.
Type of salary or benefit
Specify “cash benefit” and “deduction from salary for holiday”.
Subject to withholding tax
The benefit must always be specified as subject to withholding tax.
This is because the reported amount is used to reduce specified fixed salary (or housing compensation supplement) and must therefore have the same information for subject to withholding tax as the fixed salary.
Basis for employer's national insurance contributions
The benefit must be included in the basis for employer's national insurance contributions and will reduce the calculated employer's national insurance contributions on fixed salary (or housing compensation supplement) against which the deduction is settled.
Tax and contribution rules
If the income recipient fulfils the conditions, you must use the following tax and contribution rule:
This tax and contribution rule concerns:
- income recipients who are covered by the Svalbard Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Svalbard” for salary and other benefits.
You must also specify "Svalbard" for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Svalbard regarding trade union fees, premium for pension scheme, National Insurance premiums and education and development fund premiums and portacabin rent.
This tax and contribution rule concerns:
- income recipients who are covered by the Jan Mayen Tax Act.
If the income recipient fulfils the relevant conditions, you must specify “Jan Mayen and the Norwegian dependencies” for salary and other benefits.
You must also specify “Jan Mayen and the Norwegian dependencies” for the associated withholding tax.
See detailed information on withholding tax in the a-melding
Remember also to specify the correct deduction descriptions for Jan Mayen and the Norwegian dependencies regarding trade union fees and premium for pension scheme.
See also the detailed information concerning Jan Mayen and the Norwegian dependencies
This tax and contribution rule concerns:
- seafarers who are entitled to a special deduction (seafarer's allowance) from their salary and other benefits,
- when it is earned through work on-board a vessel in service.
If the income recipient fulfils the relevant conditions, you must specify “special allowance for seafarers” for salary and other benefits.
See also the detailed information concerning the special allowance for seafarers
If you submit an a-melding for a tax-free organisation, you can use the following tax and contribution rule:
If you submit an a-melding for a tax-free organisation (tax-free companies, associations and institutions referred to in Section 2-32 first paragraph of the Tax Act), you can specify “tax-free organisation” for the salary or benefit.
If you do this, you won't need to consider whether the income recipient will pass the reporting obligation threshold of NOK 10,000 during the year. The specification must be used from the first krone and for payments throughout the whole year.
See also the detailed information concerning tax-free organisation
How to calculate holiday
The summary shows the number of days of holiday to which employees in the various schemes are entitled and the average number of working days in a calendar month.
| Under 60 | Over 60 | ||||
| Number of working days in a month | Annual Holidays Act | Collective agreement | Annual Holidays Act | Collective agreement | |
| 5-day week | 22 (21.67) days | 21 days | 25 days | 26 days | 30 days |
| 6-day week | 26 days | 25 days | 30 days | 31 days | 36 days |
Number of working days in a month
According to the Annual Holidays Act, there are six working days in a week (including Saturdays).
6 working days per week * 52 weeks = 312 working days per year
312 working days per year / 12 months = 26 working days per month on average
For employers who use five working days per week
5 working days per week * 52 weeks = 260 working days per year
260 working days per year / 12 months = 21.67 working days per month (rounded to 22 working days)
Different ways of paying holiday pay
Examples of different ways of paying holiday pay and what you should specify in the a-melding.
Concerns when you pay all holiday pay in a single month, regardless of when holiday is actually taken. Most employers who pay fixed salary/monthly salary pay holiday pay in this way.
When you pay holiday pay, you must make a deduction from salary for holiday. You do this to ensure that the employee receives their ordinary fixed salary on an ongoing basis, regardless of when they actually take their holiday.
For employees whose holiday is specified in a collective agreement, their salary during the holiday will exceed their monthly salary.
With a six-day week and five weeks’ holiday, you must deduct salary for 30 working days, while the monthly salary covers 26 working days.
With five-day weeks and five weeks’ holiday, you must deduct salary for 25 working days, while the monthly salary covers 22 working days.
Example:
| Payslip for June | ||
| Fixed salary | 30,000 | |
| Holiday pay during the holiday year | 48,000 | |
| Holiday deduction (25/22) | - | 34,000 |
| Net payment | 44,000 | |
| A-melding for June | ||
| Cash benefit, fixed salary | 30,000 | |
| Cash benefit, holiday pay | 48,000 | |
| Cash benefit, deduction from salary for holiday | - | 34,000 |
About special tax and contribution rules
If the employee is covered by a special tax and contribution rule, you must specify this rule for all salary and other benefits.
Example with special allowance for seafarers
| A-melding for June | |||
| Type of salary or benefit | Tax and contribution rules | Amount | |
| Cash benefit, fixed salary | Special allowance for seafarers | 30,000 | |
| Cash benefit, holiday pay | Special allowance for seafarers | 48,000 | |
| Cash benefit, deduction from salary for holiday | Special allowance for seafarers | - | 34,000 |
Example with Svalbard
Holiday pay on salary which is taxed on Svalbard is taxable to Svalbard. The holiday pay must therefore be specified with the Svalbard tax and contribution rule.
If an employee is no longer resident on Svalbard, no special tax and contribution rule must be specified for ordinary fixed salary and deductions from salary for holiday.
|
A-melding for June |
|||
| Type of salary or benefit | Tax and contribution rules | Beløp | |
| Cash benefit, fixed salary | 30 00 | ||
| Cash benefit, holiday pay | Svalbard | 48 000 | |
| Cash benefit, deduction from salary for holiday | - | 34 000 | |
Concerns when you pay holiday pay in June only, regardless of when the holiday is actually taken. The employee’s salary will be deducted for the holiday that can't be taken in June, so that his or her fixed salary can be paid as normal during the other calendar months.
Example:
| Payslip for June | ||
| Holiday pay during the holiday year | 48,000 | |
| Holiday deduction (deduction from salary for holiday 3/22) | - | 4,000 |
| Net payment | 44,000 | |
| A-melding for June | ||
| Cash benefit, holiday pay | 48,000 | |
| Cash benefit, deduction from salary for holiday | - | 4,000 |
Concerns when you pay holiday pay as the holiday is taken, instead of paying all holiday pay in one month. However, you can pay the part of the holiday pay which exceeds the employee's ordinary salary during the holiday as a holiday pay supplement together with the ordinary salary in June under the provisions of the Annual Holidays Act.
Example
Noah's employer pays holiday pay supplement in June. Noah receives a fixed salary/monthly salary.
| Payslip for June | |
| Fixed salary | 30,000 |
| Holiday pay during the holiday year | 14,000 |
| Net payment | 44,000 |
| A-melding for June | |
| Cash benefit, fixed salary | 30,000 |
| Cash benefit, holiday pay | 14,000 |
Noah takes three weeks' holiday (15 days) in July.
| Payslip for July | ||
| Fixed salary | 30,000 | |
| Holiday pay during the holiday year | 20,500 | |
| Holiday deduction (deduction from salary for holiday 15/22) | - | 20,500 |
| Net payment | 30,000 | |
| A-melding for July | ||
| Cash benefit, fixed salary | 30,000 | |
| Cash benefit, holiday pay | 20,500 | |
| Cash benefit, deduction from salary for holiday | - | 20,500 |
Example
Anna takes three weeks' holiday (15 days) in June. She receives a fixed salary/monthly salary.
| Payslip for July | ||
| Fixed salary | 30,000 | |
| Holiday pay during the holiday year | 28,800 | |
| Holiday deduction (deduction from salary for holiday 15/22) | - | 20,500 |
| Net payment | 38,300 | |
| A-melding for July | ||
| Cash benefit, fixed salary | 30,000 | |
| Cash benefit, holiday pay | 28,800 | |
| Cash benefit, deduction from salary for holiday | - | 20,500 |
Example
Jacob takes one week's holiday (five days) in November. He has not earned any holiday pay. Jacob receives a fixed salary/monthly salary.
| Payslip for November | ||
| Fixed salary | 30,000 | |
| Holiday deduction (deduction from salary for holiday 5/22) | - | 6,800 |
| Net payment | 23,200 | |
| A-melding for November | ||
| Cash benefit, fixed salary | 30,000 | |
| Cash benefit, deduction from salary for holiday | - | 6,800 |
Example
William is leaving his job on 30 April. He took five days’ holiday during the period January to April. The employer normally pays holiday pay in June under a collective agreement. As William is leaving, the employer deducts the holiday days that have actually been taken from the final settlement (holiday pay only) which it pays in May.
| Payslips for January to April | |
| Fixed salary | 30,000 |
| A-meldings for January to April | |
| Cash benefit, fixed salary | 30,000 |
| Payslip for May | ||
| Holiday pay during the holiday year | 48,000 | |
| Holiday deduction (deduction from salary for holiday 5/22) | - | 6,800 |
| Net payment | 41,200 | |
| A-melding for May | ||
| Cash benefit, holiday pay | 48,000 | |
| Cash benefit, deduction from salary for holiday | - | 6,800 |
Concerns when the employee has taken holiday without holiday pay, you have made a deduction from the employee's salary and the employment ceases.
Example
Emma is leaving her job on 31 May. She took three days’ holiday during the period through to March and has not earned any holiday pay.
Her employer makes a deduction from salary for holiday in the final settlement, which is paid in June. Emma's final settlement includes an overtime supplement and a variable duty supplement that she is owed.
| Payslips for March to May | |
| Fixed salary | 30,000 |
| A-meldings for March to May | |
| May Cash benefit, fixed salary | 30,000 |
| Payslip for June | ||
| Overtime remuneration, 15 hours | 2,500 | |
| Duty supplement | 4,500 | |
| Holiday deduction (deduction from salary for holiday 3/22) | - | 4,000 |
| Net payment | 3,000 | |
| A-melding for June | ||
| Cash benefit, overtime remuneration | 2,500 | |
| Cash benefit, irregular supplement linked to hours worked | 4,500 | |
| Cash benefit, deduction from salary for holiday | - | 4,000 |
Concerns when you pay holiday pay as a lump sum and only make deductions from regular benefits.
The full holiday period is generally settled in June. The company’s agreement and practice is for holiday deductions which can't be offset against fixed benefits in June to be settled during the next salary period in July. Deduction from salary for three days is carried forward to July.
Example
| Payslip for June | ||
| Fixed salary | 30,000 | |
| Holiday pay during the holiday year | 48,000 | |
| Holiday deduction (deduction from salary for holiday 22/22) | - | 30,000 |
| Net payment | 48,000 | |
| A-melding for June | ||
| Cash benefit, fixed salary | 30,000 | |
| Cash benefit, holiday pay | 48,000 | |
| Cash benefit, deduction from salary for holiday | - | 30,000 |
| Payslip for July | ||
| Fixed salary | 30,000 | |
| Holiday deduction (deduction from salary for holiday 3/22) | - | 4,000 |
| Net payment | 26,000 | |
| A-melding for July | ||
| Cash benefit, fixed salary | 30,000 | |
| Cash benefit, deduction from salary for holiday | - | 4,000 |
Example
Fatima leaves her job on 31 August 2017. Her employer has made a deduction from her salary for holiday which is not taken in 2016 (5 days) and 2017 (25 days), a total of 30 days.
| Payslip for June | ||
| Fixed salary | 30,000 | |
| Holiday pay during the holiday year | 48,000 | |
| Holiday deduction (deduction from salary for holiday 25/22) | - | 34,000 |
| Net payment | 44,000 | |
| A-melding for June | ||
| Cash benefit, fixed salary | 30,000 | |
| Cash benefit, holiday pay | 48,000 | |
| Cash benefit, deduction from salary for holiday | - | 34,000 |
The employer pays a final settlement in September, and Fatima receives a fixed salary for holiday which she has not taken, but for which deductions from salary have previously been made. 5 days for 1016 and 25 days for 2017.
The salary that the employer pays must not be reported in September as a deduction from salary for holiday with a positive amount. This would result in an error in the summary information for the year.
| Payslip for September | |
| Fixed salary (30 days in credit) | 41,000 |
| A-melding for September | |
| Cash benefit, fixed salary | 41,000 |
Correcting errors
| MAGNET_EDAG-114 Invalid value |
| MAGNET_EDAG-114B Invalid value for this calendar month |
| MAGNET_EDAG-200 This income has been reported with incorrect information and is invalid |
| MAGNET_EDAG-230B Invalid value |
| MAGNET_EDAG-243 Information on earnings period is invalid |
| MAGNET_EDAG-298 This income has been reported with incorrect information and is invalid |
What do we use the information for
NAV uses information concerning salary and other benefits to calculate unemployment benefits and to check benefits such as sickness benefit, parental benefit, disability benefit and advance child maintenance payments. NAV needs information concerning gross holiday pay and gross employment income in order to calculate benefits. In cases where the holiday pay is paid as a lump sum, the deduction from salary for holiday must be specified so that the employment income is correct for 12 months.
The Norwegian Tax Administration needs information concerning gross employment income payments in order to assess taxes. No distinction is made between holiday pay and other employment income. Deductions from salary for holiday reduce the fixed salary in connection with the summation of employment income which must be included in the tax return.
Statistics Norway requires reporting to be consistent. Similar benefits must be reported in the same way. Fixed salaries and other income must therefore not be reported as a negative amount when deductions from salary for holiday are made. The description “deduction from salary for holiday” contributes to consistent reporting.
Applicable regulations
These regulations are only available in Norwegian.
