Government proposes to extend right to care and sickness benefits and increased unemployment benefit rate

Introduction
Extended right to care benefits
Extended entitlement to sickness benefits
Increased unemployment benefit rate extended

Introduction

Although more people are returning to work after redundancy due to COVID-19, the situation in the labour market remains uncertain. This uncertainty relates to the fact that there has been an increase in infections and consequently stricter infection control measures.

As it is difficult to predict the impact that the infection control measures will have, the government has proposed to prolong the extended right to care and sickness benefits. In addition, the government has put forward proposals for a continued increase in the unemployment benefit rate.

Extended right to care benefits

The rules on the extended right to care benefits will be further extended so that they apply until the end of June 2021. This means that a family is entitled to at least 40 days of care benefits, instead of the normal 20 days. Further, parents have a right to care benefits and the right to transfer days of care benefits between themselves when schools or nurseries are closed.

Parents are also entitled to care benefits even if their benefit quota has been used up in cases where children must be kept at home due to special infection control considerations that must be taken for the child or for family members with whom the child lives. Parents are also entitled to care benefits even if their benefit quota has been used up when schools or nurseries are closed.

Extended entitlement to sickness benefits

The rules on extended entitlement to sickness benefits in the event of infection or suspicion of infection will be extended so that they apply until the end of March 2021. This means that employees are entitled to sickness benefits when they are absent from work due to COVID-19 or in the event of such illness. For employers, employer-financed sick leave due to COVID-19 will be reduced from 16 to three days.

Increased unemployment benefit rate extended

The rules on the temporarily increased unemployment benefit rate (for further details please see "Proposal to maintain increased unemployment benefit throughout 2020") will also be extended until the end of March 2021. Normally, the unemployment benefit rate amounts to 62.4% of an unemployed individual's previous income, up to six times the National Insurance basic amount (G). Until March 2021, the compensation rate will be increased to:

• 80% for an income of below 3G; and
• 62.4% for an income between 3G and 6G.

For further information on this topic please contact Ole Kristian Olsby or Nina Elisabeth Thjømøe at Homble Olsby | Littler by telephone (+47 23 89 75 70) or email (olsby@homble-olsby.no or net@homble-olsby.no). The Homble Olsby | Littler website can be accessed at www.homble-olsby.no.