The four rates in 2026
| Situation | Rate |
|---|---|
| Statutory holiday (4 weeks + 1 day), under 60 | 10.2% |
| Agreed holiday (5 weeks), under 60 | 12% |
| Statutory holiday, over 60 | 12.5% |
| Agreed holiday (5 weeks), over 60 | 14.3% |
Why the difference? The Norwegian Holidays Act (Ferieloven) entitles every employee to four weeks and one day of holiday (25 working days), equal to 10.2% of the vacation pay base. However, most Norwegian employers offer a fifth week of holiday through a collective agreement or individual contract – in that case, the rate rises to 12%, since there is an extra week to cover.
Employees over 60 are entitled to an additional week of holiday under the Act, which adds 2.3 percentage points to either base rate.
Example calculation
An employee with a vacation pay base of NOK 600,000 and five weeks of holiday (under 60):
600,000 × 0.12 = NOK 72,000 in vacation pay.
The same employee with only the statutory four weeks and one day:
600,000 × 0.102 = NOK 61,200 in vacation pay.
What employers need to know
The vacation pay base is all salary and work-related compensation paid during the accrual year (the year before the holiday year) – not the current year pay. No tax is withheld when vacation pay is paid out, because the tax has already been collected through higher withholding on regular salary throughout the rest of the year.
Not sure which rate applies to your employees, or need help with payroll and vacation pay reconciliation? Get in touch – we will make sure it is set up correctly from the start.