Public sector pensions are set to increase in Norway following a rise in the basic amount of national insurance.

As of 1 May, the basic amount in the National Insurance Scheme has been set at NOK 136,549, representing an increase of 4.91 per cent from last year.

In Norway, the basic amount is linked to wage growth and is used in the calculation and indexations of pensions.

Norway’s largest pension company, KLP, said that those born in 1963 or later will see any supplementary pension they have accrued after 2020 adjusted in line with the basic amount.

Meanwhile, those born in 1962 or earlier will see their salary increase regulate their accrual for retirement pension and AFP.

At the Norwegian Public Service Pension Fund (SPK), old-age pension, AFP and early/special retirement pension will increase by 4.69 per cent, alongside those with survivor’s pensions who have reached age 67.

Disability pension and survivor's pension for those under 67 years of age will increase by 4.91 per cent.

“When the basic amount increases, you get more in pension,” said SPK pension expert, Svein Rasmussen.

“The difference comes from different rules for adjustment. Disability pension and accrued old-age pension are adjusted with the basic amount, while old-age pension in payment is adjusted with the average of wage and price inflation.”

The Oslo Pension Fund (OPF) will increase the old-age pension, AFP, early retirement, and over-67s’ survivor’s pensions by 4.69 per cent, while disability pensions and under-67s’ survivor’s pensions will rise by 4.91 per cent.

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