What’s included in your salary?
A wage is an allowance given from an employer to an employee in a working relationship. A salary is often called a “fixed annual salary” and includes the gross monthly salary x 12. In addition to the fixed sum, an employee is entitled to overtime pay when he / she is required to work overtime, unless the employee has a management position or a "particularly independent position" where, among other things, they’re not paid overtime. In addition to the annual salary, other benefits are often agreed upon, including pensions and insurance.
While bonus schemes often apply to all employees, they are sometimes reserved for specific positions.
Performance-related pay usually applies individually and rewards achieved results. For more information, see our article on bonuses and stock options.
When you go on holiday, although you’re not entitled to salary, the act relating to holidays says that holiday pay should compensate for the loss of salary during your time off.
Holiday pay is calculated according to the previous year's income. You are therefore not entitled to holiday pay during your first year of employment. However, youdo have the right to time off (holiday), but without pay. Holiday pay is calculated by law as 10.2% of the previous year's income. However, most employees receive holiday pay calculated at 12%, due to their right to five weeks of holiday per year.
Salary and parental leave
During your parental leave, you’re entitled to a salary up to 6 times the basic amount listed in the Norwegian national social insurance scheme. But many companies give their new parents full pay during parental leave according to their local or collective bargaining agreement. If you work in the public sector, you receive a full salary in accordance with the collective bargaining agreement.
Employees who are on parental leave are usually not obliged to receiving a salary adjustment. However, you do have the right to be evaluated in the same way as other employees in the company. You are also entitled to receive a general additional payment if this has been negotiated. If the company has an additional bonus, you’re entitled to receive a bonus in accordance with the time you were present.
When your employer cannot pay
If the employer is unable to pay wages, it’s appropriate to apply for bankruptcy. In this case, we recommend that Tekna members contact us for assistance. If the employer does not want to pay wages, wage claims must be brought before the courts. If you are confronted with this issue, our legal team can help you.
Unless a lack of payment is due to a mistake or misunderstanding, we recommend that you contact us quickly after payday should this occur.
As a rule, salary deductions cannot be made unless the employee accepts this deduction. Exceptions are made in cases where this is permitted by law, for instance in connection with a collective bargaining agreement deposit.
All employees should have an annual review of their salaries. If there’s a Tekna group at your workplace, the Tekna representative will usually conduct negotiations on behalf of members. After the negotiations, the employer will distribute the salary among the employees based on fixed criteria. In the government sector and for employees of Oslo Municipality, there are also central negotiations between the parties, where Tekna is represented through The Federation of Norwegian Professional Associations (Akademikerne). The different collective bargaining agreements give you the additional opportunity to talk about salary outside of the annual negotiations. For example, in the public sector, it’s possible to negotiate an employee’s salary if there have been significant changes in the conditions that have been used in determining the salary, and if it’s difficult to recruit or retain especially qualified employees. Feel free to contact Tekna for further information on the criteria that apply in your workplace.
In cases where there is no collective bargaining, the salary adjustment is determined individually. Should this occur, Tekna recommends that members conduct salary negotiations, which may be required. Members should check to see if they’re covered by a collective bargaining agreement that entails this right. In this case, it’ll also be possible to demand a salary negotiation where elected representatives negotiate on behalf of members. If you have no Tekna representative, you can ask your employer to have a salary negotiation on an individual basis.
Sometimes an employer wants to reduce an employee’s salary. If the employee has remained in the same position , any pay cut requires an agreement between the employer and employee. Salary is part of the employment contract and cannot be reduced without an agreement.
If your job description changes, the situation may be different if the area of work and responsibility are significantly changed. If the parties agree on these changes, pay and other terms will normally be included as part of the change. .
Salary during temporary layoffs
The employer has to pay the employee for 10 days after a layoff has been implemented.
Salary during the notice period
The employer must pay the employee their salary during the notice period. According to the law, the notice period is a minimum of one month; however, most employees have a three-month notice period. Older employees may have somewhat longer notice periods.