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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case NO-2020-14/724 Updated – measures in Norway

Temporary income assurance scheme for self-employed and freelancers

Midlertidig inntektssikringsordning for selvstendig næringsdrivende og frilansere

Country Norway , applies nationwide
Time period Temporary, 30 March 2020 – 01 November 2020
Type Legislations or other statutory regulations
Category Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme
Author Aasmund Arup Seip, FAFO and Eurofound
Case created 17 April 2020 (updated 08 January 2021)

Background information

The outbreak of viruses and measures introduced to prevent infection have had major effects in the labour market, and several measures have been implemented to ensure income for those affected. The Storting (parliament) asked the government to introduce a temporary scheme for self-employed and freelancers who are now losing all or part of their income base as a result of the corona pandemic. The regulation (FOR-2020-04-08-735) takes effect immediately and the payments will be disbursed as soon as NAV gets a technical solution in place for the scheme.

Content of measure

A compensation scheme for self-employed persons and freelancers who have lost all, or part of their income was approved by the government on 8 April. The new temporary scheme covers up to 80 per cent of income, limited up to an annual income of 6G (approx. €50,700) (1G = the basic amount in the national insurance), and applies to income that does not entitle to unemployment benefit. The scheme includes those who have lost income on or after March 16. The compensation is given from day 17 after the loss of income. One must apply in arrears for the loss of income the month before, so that The Norwegian Labour and Welfare Administration will know about any income for the month in which the application applies. Generally, the basis for compensation for freelancers is calculated on the basis of an average of the income reported to the Tax Administration via the current “a-scheme” in the last 12 months before March 2020. A shorter period can be used for newly established freelancers. Generally, the basis for compensation to self-employed persons is calculated on the basis of business income over the past three income years. The application is due in early May. The Norwegian Labour and Welfare Administration is already in the process of creating a digital solution that allows payments to be made automatically. The application is due in early May. Those applying for the new scheme will receive detailed guidance along the way in the application process.

Updates

The following updates to this measure have been made after it came into effect.

23 October 2020

23 October 2020, the parliament decided to extend the compensation scheme for self-employed and freelancers until February 2021, but the compensation benefit will be reduced from 80% to 60% from 1 November 2020.

12 June 2020

The 12 June 2020, a temporary law, valid through 1 November 2020, replaced the temporary government regulation.

Use of measure

No information to date.

Target groups

Workers Businesses Citizens
Self-employed
Workers in non-standard forms of employment
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Public employment service
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level

Involvement

The social partners have been consulted regularly during design and implementation of the measure.

Views and reactions

The measure have support from the social partners.

Sources

  • 20 March 2020: Prop 67 S (2019–2020) Endringer i statsbudsjettet 2020 (www.regjeringen.no)
  • 31 March 2020: Innst. 216 S (2019–2020) Innstilling fra finanskomiteen om Endringer i statsbudsjettet 2020 (www.stortinget.no)
  • 17 April 2020: New compensation scheme for self-employed and freelancers (www.nav.no)
  • 04 May 2020: Frilansere og selvstendig næringsdrivende kan nå søke om kompensasjon for tap av inntekt (www.nav.no)
  • 05 October 2020: The compensation is extended - but covers less (www.dagsavisen.no)

Citation

Eurofound (2020), Temporary income assurance scheme for self-employed and freelancers , case NO-2020-14/724 (measures in Norway), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.