May 21, 2022

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The government and the parties agree: These companies get wage subsidies

The government and parties agreed on a wage subsidy scheme, NTB Trials. Companies whose turnover is down 20 percent can receive up to NOK 30,000 per employee.

This week, the parties in action are negotiating with the government about the long-awaited wage support scheme for companies in crisis, with the goal being to avoid duplications.

The scheme will be presented at a press conference at 6.30pm tonight, but now NTB can reveal details of the proposal from the government:

This is how the scheme will be

* The subsidy is paid to companies that can document a turnover of at least 20 percent due to strict infection control rules.

* Each company can receive up to NOK 30,000 in support per employee per month. The amount is adjusted according to how large each company’s turnover is.

* The minimum that can be paid to the company is 3000 NOK per employee per month.

* Each company can receive a maximum of NOK 45 million to support the programme.

* Companies that receive support receive support for all of their employees. The scheme also applies to trainees. There is a separate rate for these.

Effect from December 1

The system is effective from December 1 and will initially apply until the end of January 2022. If strict infection control measures continue, it may be appropriate to extend the wage support for one month, that is, until the end of February 2022.

According to NTB experience, there is a requirement to block redundancy in the schema. A company receiving a wage subsidy cannot lay off employees during the period in which they receive the subsidy.

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Several companies, including hotel chain Scandic, have already sent redundancy notices to their employees before Christmas.

LO leader Peggy Hessen Følsvik made a clear call to these:

– Pull repeat notifications. Instead, use the wage subsidy system and keep people in work where possible, Følsvik tells NTB.

(© NTB)