Norway Introduces New Pension Rules – Retirement Age Increases

Norway Introduces New Pension RulesNorway introduces new pension rules this year to standardize the retirement age, which increases with life expectancy for those born in 1964 or after. This is the final implementation phase of pension reform, which began in 2011, aimed at maintaining the sustainability of the pension system due to increased life expectancy.

Previously, the general retirement age was 67, with flexible withdrawal possible from age 62.

  •   From 2025, those born in 1964 or later must work longer
  •   Retirement age will gradually increase by one month per year, starting with the 1964 cohort
  •   A new term is introduced: ‘Standard Retirement Age,’ replacing today’s fixed age of 67
  •   Related benefits (sick pay, unemployment, work assessment allowance) will also be adjusted

The Early Retirement Scheme for Workers in Physically Demanding Jobs (“Sliterordningen”) remains available for those who are unable to stay in the workforce until retirement.

It is only available to those who retire before the age of 65 and cannot be combined with income, work assessment allowance, or disability benefits.

Proposed Change to the Capitalization Rate in Occupational Injury Cases

The Norwegian Ministry of Labour and Social Inclusion has proposed lowering the capitalisation rate used in calculating compensation for occupational injury claims.

  •   The rate is proposed to be reduced from 6 % to 2,5 %
  •   This will lead to higher compensation amounts in lifelong payments
  •   The change is relevant for both private and public sector employers and may result in increased insurance premiums

The proposal is currently under consultation, and a final decision is expected later in 2025.

Occupational Diseases – Upcoming changes

The official list of recognized occupational diseases has remained unchanged since 1958. Now, a government-appointed committee is reviewing and updating the list, with a special focus on women’s health.

A new safety mechanism is proposed to allow compensation for illnesses not on the list. Rules governing occupational injuries and insurance will be revised, and changes to the definition of workplace accidents are also being considered.

 

This information about Norway introducing new pension rules is provided by Howden, Asinta’s employee benefits consulting partner in Norway. If you need support with your benefits in the country, please contact Asinta, and we will put you in touch with the local experts at Howden.