Disability benefit and tax

No, disability pension from the Norwegian Labour and Welfare Administration (Nav) was renamed disability benefit as of 1 January 2015. The conditions for qualifying are not changed.

Disability benefits from pension schemes other than Nav/National Insurance scheme, such as the Norwegian Public Service Pension Fund (SPK), may still be called disability pension.  

No, all disability benefits that were previously taxed as pension income will be taxed as salary income as of 1 January 2015.

No, disability benefit is not considered pensionable income, but your pension will accrue based on the income that the disability benefit replaces. If you're born before 1962, you receive pension credits up to and including the year that you turn 66. If you're born later, you receive pension credits up to and including the year that you turn 62.

You can contact Nav for more information about the basis for pension earnings.

Nav/National Insurance Scheme has increased the amount of disability benefit to compensate for the increased tax rate.

If you've got another pension scheme instead of or in addition to Nav/National Insurance Scheme, you must contact them to learn whether there have been changes to the benefits you receive.

As far as what each individual will be paid, this depends upon the amount of the Norwegian National Insurance benefit/disability benefit, any additional benefits, tax, deductions, etc.

Unfortunately, we're unable to give a specific answer to whether you'll receive more or less than before.    

In December of every year, you'll receive your tax deduction notice for the next year. This shows which information is used to form the basis for your new tax deduction card. There you'll also find which percentage or table-based deduction you should use. The table-based deduction is generally used for your main employer (the one from which you receive the largest payment). If you've got other employers/pension companies, they must use the percentage deduction.

When we calculate the income for the 2023 tax deduction card, we use information from your employer for October 2022 (x 12). In some cases, we’ve used the last 12 months from November 2021 to October 2022. In addition, we include a percentage change in your salary income as predicted by the National Budget for 2023 (3.0 percent). We use the option that results in the highest income.  However, for some people the calculation gives an income that is too high or too low as basis for their tax deduction card. If your calculated income is not correct, you can change your tax deduction card yourself. We’ll produce a new tax deduction card that your employer will retrieve.

See examples how to calculate what tax to pay

No, you do not earn the right to holiday pay by receiving disability benefit.

However, there's no tax deduction on benefit amounts paid out in the month of June. If you work, in addition to receiving benefits, you earn the right to holiday pay based on your employment income. You can find out more about disability benefits at nav.no.

It's important to carefully check the basis for the calculation of your tax deduction on your tax deduction notice that you received in December, and ensure that the information is correct.

If you’re starting to work, you must change your tax deduction card so that it includes both disability benefit and salary in the basis.

If you've got a table-based deduction card, it's important to ensure that one payer (main employer) only uses the table-based deduction within the same period. Other payers must use the percentage deduction.

If you wish to make changes, you'll need to change your tax deduction card.

NAV/the Norwegian National Insurance Scheme will use table-based deductions if your degree of disability is over 50 percent, or if NAV/the Norwegian National Insurance Scheme pays the largest benefit.

You need to order a new tax deduction card.

When you change your tax deduction card at skatteetaten.no, NAV receives an update as soon as the change has been processed by the Tax Administration.

The withholding tax on pension and disability benefit of 15 percent will be continued. It will not be affected by the new rules.

This is so that those who receive disability benefits, while also working, do not have to deal with two different tax rules.

As of 1 January 2015, both disability benefit and salary income are taxable as salary income, not as pension income and salary income. The Storting's decision to increase gross benefits for new recipients of disability benefit to 66% of previous income up to 6 G is based upon the condition that new disability benefits are taxed as salary.

Yes, it will be upwardly adjusted at the same time as the G regulation.