Sick-pay for self-employed persons
Sick-pay is intended to compensate for the loss of income for people who are unable to work due to illness or injury. As a self-employed person (i.e. you run your own sole proprietorship or are a partner in a general partnership/partnership with joint liability), your sick-pay cover will be less than it will be for employees. However, you can take out insurance in order to obtain better cover.
Sick-pay entitlements for the self-employed
As a self-employed person, you will receive 80% of the sick-pay basis from the 17th day of illness onwards. The 16 days are counted from the date on which you see a doctor or the date on which NAV is notified of your incapacity. No sick-pay will be calculated on income in excess of 6G (currently NOK 599 148).
Calculating the sick-pay basis for self-employed persons
When NAV pays sick-pay, a basis for the sick-pay must be determined. This is normally calculated based on your average pension credits for the past three years for which you have received a tax assessment. The basis for sick-pay is limited to a maximum of six times the National Insurance basic amount (G). If your business was established less than three years ago or its income changes permanently by more than 25% relative to the calculated sick-pay basis, the sick-pay basis will be determined on a discretionary basis.
If you have received income both as an employee and as a self-employed person, the sick-pay will be calculated based on the total annual income according to special rules.
Voluntary sick-pay insurance
In order to obtain better sick-pay cover than 80% from the 17th sick day, you have to out voluntary sick-pay insurance through NAV. There are three alternative insurance schemes.
|Type of sick-pay scheme||Insurance premiums|
|Ordinary sick-pay scheme with 80% of sick-pay cover from the 17th day of sickness||None|
|Voluntary sick-pay insurance with 80% of sick-pay cover from the 1st day of sickness||2.3% of expected annual income|
|Voluntary sick-pay insurance with 100% of sick-pay cover from the 17th day of sickness||2.0% of expected annual income|
|Voluntary sick-pay insurance with 100% of sick-pay cover from the 1st day of sickness||9.4% of expected annual income|
There is also an upper limit for the sick-pay basis of six times the basic amount (G) for the voluntary sick-pay insurance schemes, which means that the insurance will not cover you for income above 6G.
The premium for voluntary sick-pay insurance can be deducted in the tax return.
Applying for sick-pay
Contact NAV for information on how to apply for sick-pay and how it is paid.