Extension of several schemes and measures as a result of corona

In the revised national budget, the Government has proposed extending several measures and schemes to remedy the consequences of the corona.

1. Extension of the wage support scheme

The Government proposes that the duration of the wage support scheme be extended. Initially, the scheme was to apply from 15 March to 30 June 2021, but it has now been proposed that the scheme will also apply until the end of August 2021.

Employers, who can document a drop in turnover of 70 per cent or more, receive up to NOK 25,000 per month per employee who is taken back from temporary layoffs (in some jurisdictions referred to as furlough). In the event of a fall in turnover of less than 70 per cent, the amount of support gradually decreases to NOK 10,000 for a fall in turnover of 15 per cent. A fall in turnover below 15 per cent does not entitle to financial support.

An employer can receive financial support for up to 108 days per temporarily laid-off employee who is brought back and can receive a maximum of NOK 21.9 million in support during the scheme's duration.

2. Temporary layoffs (furloughs)

The Government has proposed that the maximum period during which employers are exempted from pay during temporary layoffs be changed back to 26 weeks within a period of 18 months. The change will apply to new temporary layoffs from and including 1 July 2021. If an employer temporarily lays off an employee after 1 July 2021, previous temporary layoffs will not be included in the calculation.

3. Extension of the quarantine compensation scheme

The Government proposes to extend the compensation scheme for entry quarantine until the end of June 2021. Employers can apply for up to NOK 1,000 in support per day an employee or contractor has been in entry quarantine.

4. Extended right to sickness benefits and care benefits

It is proposed to extend the right to sickness benefits in the event of absence due to corona infection or suspected corona infection until the end of September 2021. Employer-financed wages  for this type of illness is reduced from 16 to 3 days.

The government also proposes to extend the temporary rules for care allowance until and including September 2021. Parents who have children in quarantine or are at home due to closed schools and kindergartens are entitled to care allowance. This applies even if the original quota has been used up.

5. Expansion of the right to work assessment allowance

The Government proposes to extend the benefit period for recipients of work assessment allowance until the end of September 2021. This also applies to recipients who have initially used up their benefit period between 1 July and 29 September.