Update on Norway’s Pension Legislation

As of July 1, 2022, Norway’s occupational pension legislation states that the possibility for a deduction in the pension qualifying income was removed. Specifically, this applied to defined contribution pension schemes, which until this date could have a ‘basic deduction’ of 1 G (the National Insurance basic amount, currently NOK 118,620) in the calculation of the pension qualifying income. The requirement for a minimum 2% contribution for salaries between 0 – 12 G was simultaneously maintained – meaning that this was, in effect, a cost increase for all companies with the minimum 2 % contribution level. Companies with higher contribution rates could reduce the contribution level in order to reduce/neutralize the effect of the new legislation. The regulations were already effective as of January 1, 2022, but with a final deadline for implementation at July 1, 2022.

As of the same date, the possibility of requiring a minimum age of 20 years and a minimum employment rate of 20 % for membership in the occupational pension scheme ceased. All employees over the age of 13 with registered taxable wages in the “A-ordningen” (official salary register) – meaning practically more than NOK 1000, and NOK 10000 for non-profit organizations – must be members of the occupational pension scheme from the first day of employment.

There is also no longer any requirement for a minimum membership period to be entitled to accrued pension benefits. Previously, a requirement of 12 months of membership was in place, but this requirement was already eliminated in 2021.

 

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