Norsk
What is payroll deduction?
Salary deduction is when an employer withholds part of an employee’s salary. The same applies if you receive social security benefits – in that case you may have your wages deducted by NAV before payment. Payroll deductions can be made for various reasons, such as voluntary agreements, debts or statutory deductions.
Sometimes it is agreed between employer and employee that a certain amount of money will be deducted from the salary, for example for pension contributions or health insurance.
In other cases, it may be that the employee owes money and that a deduction will therefore be made from their salary.
The Norwegian Tax Administration, the bailiff, NAV and the government’s debt collection agency are the four agencies that can carry out wage deductions in Norway.
Rules for payroll deductions
In other words, the employer cannot make payroll deductions without further ado. The Working Environment Act sets limits for when this can happen. In addition, a notice of salary deduction must be sent to the employee at least 14 days in advance. Salary deductions can be made by the employer if:
- It is statutory
- It’s part of a collective agreement
- It is agreed in writing in advance
Let’s assume that we’re not talking about pure debt, but an accident in the workplace.
If you, as an employee, damage or lose something that leads to a loss for the company, the employer must have your written consent to deduct wages for the accident.
On the other hand, the employer can deduct your salary if you violate the written agreement, such as leaving the position before the notice period has expired, without having agreed this with the employer in advance.
Deduction in salary for vacation
An employer can make deductions from salary for vacation when:
- Holiday pay is paid continuously as holiday is taken
- Employee takes holiday, but has not earned holiday pay
- The holiday pay is paid in full in May or June instead of regular salary, so that regular salary can be paid for the rest of the year.
How to stop payroll deductions?
Have you been affected by payroll deductions?
If so, you’re not alone.
There are many people in the same situation as you, all wondering how to get out of it.
Since salary deductions are usually related to debts that have not been repaid, it goes without saying that they must be repaid in order to remove the salary deduction.
If you find that you are unable to repay your debt, there is always help available.
By contacting your creditor, you can usually get a repayment plan that works for both parties.
Contact the creditor as soon as possible after you’ve received a payroll deduction notice.
If you’re lucky enough to reach a good agreement, you may be able to avoid having your wages deducted, and your creditor won’t have to spend time initiating the process that wage deductions often require.
How to get an overview?
If you’re unsure whether payroll deductions apply to you, the best way to get an overview is to check your payslip, tax return or talk to your HR or finance manager.
In addition to this, we’ve shared our top tips on how to get your finances under control, explaining everything from how to set up a budget and build up a buffer account, to cutting out unnecessary costs and contacting creditors.
What do you do next?
It is possible to refinance payroll deductions, both with and without collateral in your own home. This means that you take out a new loan – which will cover the debt you have today – with lower interest rates and better terms. By refinancing your loans in addition to baking in the payroll deduction requirements, the deduction will disappear. Talk to us about refinancing, or apply for it with no obligation!
