Extends rules for sickness benefits, care benefits and unemployment benefits

Press release | Date: 03.11.2020

The government proposes to extend the schemes with extended entitlement to care benefits and sickness benefits, as well as an increased unemployment benefit rate.

The situation in the labor market has improved since last spring, when Norway closed down. Two out of three coronal unemployed are now back at work. But the number of unemployed and laid off is still high. In recent weeks, Norway has been reminded that the situation  is  fragile. There is uncertainty about the consequences of new infection control measures for companies that are struggling and for those in the labor market who are hardest hit.  

- The crisis is not over. We are following closely and therefore we are now announcing changes, says Minister of Labor and Social Affairs Henrik Asheim.  

Care allowance and sickness allowance 

The care allowance rules will be extended until June 2021, and the quotas will also be doubled in 2021. This means that a family next year will be entitled to at least 40 days of care allowance, compared with 20 days in a normal situation. In addition, the rules on sickness benefits in the event of infection or suspected infection will be extended until March.  

- The infection situation in the future could mean more sick leave due to both illness and quarantine, and that children must be kept at home from school and kindergarten. The new proposals take this into account. At the same time, we encourage those who can to work from home, says the Minister. 

Increased unemployment benefit rate  

The temporary increased unemployment benefit rate was to go down to the normal level from January 2021, but will now be extended until March.  

- Increased uncertainty due to infection control measures means that the government is waiting to reintroduce the normal unemployment benefit rate, the minister says.  

Infection control measures have consequences for many industries. Higher rates will particularly benefit low-wage earners. 

The government proposes:

Sickness benefits:

The following temporary corona measures, which are effective until 2020, are proposed to be continued until 31 March 2021: 

• Right to sickness benefits in the event of absence from work due to covid-19 or suspicion of such illness. It is specified that persons who violate the travel guidelines of national authorities and are required to quarantine on return to Norway may be denied sickness benefits
• Reduced number of days for employer financing of sickness benefits from 16 to three days for absence due to covid-19
• Freelancers and the self-employed are entitled to sickness benefits from the fourth day for sick leave due to covid-19

Care allowance:

All parents will receive double allowances with care allowance in 2021.  

The following temporary corona measures for care allowance are proposed for the period 1 January to 30 June 2021: 

• Entitled to care allowance when schools and kindergartens are closed
• The right to transfer days of care allowance between parents when schools and kindergartens are closed
• Entitlement to care allowance even if the quota has been used up for parents of children who must be kept at home due to special infection control considerations in the child or in the family member the child lives with
• Entitled to care allowance even if the quota has been used up when schools and kindergartens are closed 

Unemployment benefits:

The increased rate will be extended until 31 March 2021.  

• Unemployment benefits are normally paid with a compensation of 62.4 per cent of the basis up to 6G. Since 20 March this year, the compensation rate has been increased temporarily, by giving 80 per cent of income under 3G, and 62.4 per cent of income between 3G and 6G (the basic amount is approx. NOK 100,000). With a previous income of 6G, the compensation rate is 71.2 per cent. The increased rate applied to all those who were granted unemployment benefits with an effect date of 20 March, ie also those who were laid off from 12 March and who received 18 days of wage compensation prior to the unemployment benefit period.