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Employers with a drop in turnover of 70 percent or more will receive up to NOK 25,000 per employee who is removed from layoff.
Finance Minister Jan Tore Sanner presents the government’s proposal for a new salary support scheme. The scheme has similarities to the previous one, but with higher amounts of support per employee and greater flexibility.
– The most important thing we can do to reduce the long-term consequences of the pandemic is to ensure that people return to work quickly, says Finance Minister Jan Tore Sanner (H).
Employers with a drop in billing of 70 percent or more will receive up to NOK 25,000 per month for each employee withdrawn from leave. Previously, companies could receive NOK 15,000 per apprentice or employee.
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The scheme is applied in the period from March 15 to June 30 of this year. The employer is supposed to have a drop in turnover of at least 15 percent. The employee must have been laid off both on March 5 and towards the end of last year to qualify for support.
– The plan will not help everyone, but it will help those who have been affected for a long time, says Sanner.
The maximum amount per month is NOK 25,000 for 250 employees.
More stringent requirements
Tax authorities must administer the plan. The aim of the plan is to provide companies with start-up assistance and improve employee training opportunities, as well as plan and improve reopening.
Under the previous salary support scheme, companies with a turnover drop of more than 10 percent were eligible for help. This time, falling below 15 percent does not qualify for support.
The government also proposes to allocate an additional NOK 100 million to the application-based plan for internal training (BIO), which is administered by the county municipalities.
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In January, the opposition agreed to 23 points in a new crisis package for society after the crown crisis. In this, they agreed to ask the government to come up with a proposal for a new wage support model, so that people can stay at work instead of being fired.
Last year’s salary scheme was extended to last through 2020.
– It can be absolutely crucial
– The wage support plan, which the government launched today, can help us get people back to work, says Anne-Cecilie Kaltenborn, CEO of NHO Service og Handel.
He adds that NHO hopes that companies that have been fully or partially closed due to infection control measures will receive support to recover employees.
– Most utility companies now have distressed liquidity and many are threatened with bankruptcy. We are now entering what will likely be a critical spring and summer for business and society. A well-functioning salary support plan can be absolutely crucial in getting people back to their jobs, says Kaltenborn.
Therefore, the new scheme is a follow-up to the Storting’s application decision and has been designed in collaboration with NHO, LO, Virke and SMB Norway.
– Virke has worked for a salary support plan that is predictable, flexible, and generous enough to work. We are pleased that the government has met with us in many areas. With this scheme, the path back to work may be shorter than the path out of the pandemic, says Ivar Horneland Kristensen, Virke’s CEO, adding:
– We believe that this improved salary support scheme will allow many employers to retire laid off workers sooner, so they can increase their skills, develop the business and prepare for more activity.
