Please keep in mind that Freelancers and independent contractors are not entitled to holiday pay under the Annual Holidays Act, so we sadly cannot save it on your behalf.
If you want to set it aside yourself, here are a few tips:
- Holiday pay amounts to a minimum of 10.2 percent of the salary.
- If you are over the age of 60, the normal rate is 12.5 percent.
Holiday pay is generally exempt from payroll withholding tax. This means that you should not deduct tax from holiday pay when it is paid. However, holiday pay constitutes taxable income for the recipient and will be included in the basis for calculating the tax for the income year.
Please contact Skatteetaten directly if you need help with this. The formula you can use to save your holiday pay is as follows: (Your yearly income x 10.2%)÷100. You can read more about holiday savings here.
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