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What are the rules for foreigners accessing welfare in Norway

Norway's welfare system offers a robust safety net to anyone who falls on hard times, and it's essential to be familiar with the rules. Here's what you need to know about accessing welfare in the country.

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If you want to find out more about accessing welfare in Norway as an international citizen - look no further. Photo by Drahomír Posteby-Mach / Unsplash

As a general rule, everyone living legally in Norway who needs help to get by can apply for financial or social support – even if they’re not a citizen of the country.

If you need temporary help to cover the expenses of day-to-day life, you should look into Norway’s expansive offer of social assistance measures.

The various schemes include job hunting support, financial support, emergency assistance, unemployment benefits, and work assessment allowance (AAP) – to mention just a few.

As the Norwegian Labour and Welfare Administration (NAV) is responsible for all welfare-related applications, it will be your key point of contact for any inquiries you might have.

You can find out more about the NAV’s financial support measures here.

Requirements for accessing welfare assistance

Remember, you must legally reside in Norway to access welfare services in the country. Also, note that you’re not eligible for Norwegian social assistance if you live outside the country.

However, if you’re living in Norway legally, you’re free to apply for social support.

Expect the process to involve a moderate level of paperwork (most – if not all – of it can be submitted online), and make sure to have documentation showing your financial situation ready.

Then NAV will ask for different documents based on your individual circumstances, but you can expect them to ask for your residence permit, a document that serves as proof of identity, tax records, bank statements, accommodation documents, and the like.

In Norway, welfare is handled at the municipal level, so the municipal NAV office will be in charge of processing your social assistance application. More details on the process can the found on the NAV’s website.

Scope of welfare assistance

Welfare coverage in Norway can cover virtually all of your essential day-to-day life, health, and accommodation expenses – as long as the NAV deems the covered costs to be within reason.

While there is no fixed payment rate for welfare, some state guidelines are often applied across a number of municipalities.

Note that the guidelines are just that – guidelines – and the NAV makes individual assessments in each case. Therefore, the welfare support you might receive will be tailored to your estimated needs.

As the NAV points out on its website, the assessment takes into account your necessary living expenses, income, future income prospects, age, family situation, and health.

The state guidelines can be found here (available in Norwegian).

Social assistance that includes financial support is a temporary benefit, and – in most cases – you are expected to find a way to support yourself in the long term.

Application process

As stated beforehand, the NAV office in the municipality in which you live will be your main checkpoint for all welfare-related needs and questions.

You can apply for social assistance there, and the NAV employees will usually help you figure out the type of support that best fits your situation.

Remember that you have the right to ask the NAV for help in applying for welfare support. The Administration is obligated to provide you with all the information and advice you need on the process.

You can ask them for help on-site at your municipal NAV office or via digital channels on the NAV website.

Most places in Norway offer the possibility of submitting applications online, but in some municipalities, you will need to fill out the documentation at the NAV office.

You can find out more about digital and written paper applications here (available in Norwegian).

Expect the waiting times for hearing back from the NAV to vary based on where you live – your local NAV office will often inform you of case processing times during the application process.

There may be some hiccups in the process – especially if you submitted incomplete or faulty documentation. The NAV will contact you in such cases and ask you to update your application.

If the NAV decides to grant you social assistance, they will inform you of their decision in a letter, which will also contain more information on the payments, timeline, and associated rules.

Note that you also have the right to appeal the NAV’s decision. More information on appeals is available here.

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NORWAY EXPLAINED

What parental benefits are you entitled to as a freelancer in Norway?

For newcomers to Norway, navigating the world of parental benefits can be complex, especially if you're a freelancer.

What parental benefits are you entitled to as a freelancer in Norway?

Navigating a foreign country’s administrative and social support systems can often feel overwhelming, particularly if you don’t fit the standard of a typical employee with a permanent contract.

This complexity is more pronounced for freelancers, who must contend with specific challenges – such as changing income levels and varying definitions of their work status.

READ MORE: What parents in Norway need to know before going on parental leave

The fact that Norway is a country renowned for its generous social benefits and high standard of living doesn’t make this situation different from other countries.

Understanding – and accessing – parental benefits as a freelancer can be confusing, especially when it comes to parental allowance.

Defining freelancers in Norway

While many freelancers in Norway operate as sole proprietors (ENK), the Norwegian Labour and Welfare Administration (NAV) has a special definition in place for freelancers.

Under Norwegian regulations, freelancers are considered independent contractors who receive a salary fee (also called salaried freelancers).

In contrast, those running an ENK are classified as self-employed.

This distinction can be confusing because most freelancers in Norway are, in fact, self-employed and call themselves freelancers.

That’s why, when consulting NAV’s information on parental allowance or using their online site, those with an ENK should view and declare themselves as “self-employed” rather than “freelancers.”

So, if you contact NAV to inquire about your rights, explain your business arrangement in detail.

Psst! If you are considering setting up as a freelancer in Norway, make sure to read The Local’s in-depth guide on the options at your disposal.

Understanding your social rights as a freelancer

As a freelancer in Norway, your social rights differ from those of traditional employees.

Unlike employees, freelancers are not entitled to sick pay from their clients. However, they are eligible for sick pay from the NAV starting from the 17th day of illness.

READ MORE: What are the rules for foreigners accessing welfare in Norway

To enhance their coverage, they can also opt for voluntary supplementary insurance.

Furthermore, freelancers do not benefit from a pension scheme provided by clients, so they need to look into a personal pension plan to ensure financial security in retirement.

Under certain conditions, freelancers may be eligible for unemployment benefits.

If you need clarification on whether you qualify, contact the NAV and share the specifics of your case with them.

Parental benefits for freelancers

Parents in Norway, including freelancers, are entitled to 12 months’ leave in connection with a birth of their child.

This leave period includes the mother’s right to up to 12 weeks’ leave during pregnancy and six weeks’ leave that can only be taken by the mother after the birth.

Furthermore, all welfare benefits for freelancers and the self-employed in the country are based on the profit of their businesses.

This profit is the amount remaining after deducting business expenses.

For instance, if you invoice 600,000 kroner annually and have 150,000 kroner in expenses (such as office space, travel, and equipment), NAV will use your profit of 450,000 kroner to calculate your benefits, including parental allowance.

The maximum benefit amount is capped at six times the National Insurance basic amount (1G), which, as of May 1st, 2023, is 118,620 kroner.

This cap applies to freelancers, wage earners, and others eligible for benefits.

Calculating parental allowance

For self-employed individuals, parental allowance is typically calculated based on the average income over the last three years, with the NAV obtaining this data from the Tax Agency.

Note: If your profits have fluctuated significantly over the period or if you have been in business for less than three years, you will need to provide the NAV with a detailed description of how your business operates and makes money.

Based on that information, they will conduct an individual assessment and make a discretionary decision regarding the amount you will be paid for parental allowance.

On the other hand, the rules for salaried freelancers and those with a limited company (AS) mirror those for regular employees.

Parental allowance is generally based on the average income from the three months preceding the start of the parental benefit period.

If there is a significant difference (over 25 percent) between your annual income and your recent three-month income, NAV will determine which figure is more representative.

Parental allowance can be taken consecutively or in combination with work or holidays.

For more detailed information, you can check out NAV’s guidelines on parental allowance.

Alternatives for those not entitled to parental allowance

Even if one or both parents are not entitled to parental allowance, they still have the right to parental leave.

In such cases, the mother can apply for a one-off benefit, and in certain circumstances, the father can too.

Additionally, as employee interest organisations often point out, the parent who has not accrued the right to parental allowance can begin to accrue this right while the other parent is on leave.

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