Norway Parental Leave Update

Norway parental leaveNorway parental leave was recently extended for employees who opt for a reduced rate of the paid benefit. This change applies to children born after July 1, 2024. The parental leave benefit period has been increased from 295 days to 306 days (or 61 weeks and one day) for employees who choose to receive a reduced rate of benefit rather than their full pay. This change came into effect on May 22, 2024, as part of amendments to the National Insurance Act. Employees can choose between two benefit rate options:

  • Full pay for a shorter period
  • Reduced pay (80% of full pay) for the extended 306-day period

What employers need to do:

  1. Update policies: Employers should review and update their parental leave policies to reflect the new extended leave period for those opting for reduced pay.
  2. Inform employees: Communicate the changes to all employees, explaining the new option for extended leave at a reduced pay rate.
  3. Adjust payroll systems: Ensure that payroll systems can accommodate the extended leave period and correctly calculate the reduced benefit rate for eligible employees.
  4. Train HR personnel: Provide training to HR staff on the new leave provisions to ensure they can accurately advise employees and process leave requests.
  5. Review staffing plans: Consider the potential impact of longer parental leave periods on staffing and project planning.
  6. Implement by May 22, 2024: All necessary changes and preparations should be completed by May 22, 2024, when the new provisions took effect.

It’s important to note that these changes are part of a broader trend in Nordic countries to provide more flexible and equitable parental leave options. For instance, in 2022, Norway also introduced changes that gave fathers or co-mothers an independent right to 8 weeks of parental allowance without any activity requirement for the mother.

 

This article about Norway parental leave is provided by Howden, Asinta’s employee benefits consulting Partner in the country. If you need support with your employee benefits in Norway, contact Asinta, and we will put you in touch with the local experts at Howden.