In 2023, the number of applications for financial assistance (social help) from NAV skyrocketed. Social help in Norway is a temporary financial aid from NAV that is intended to secure a person’s income to cover basic subsistence costs. These payments are not part of the list of benefits in Norway, such as sickness or family-related benefits. They are not considered part of your income, and you do not pay taxes on them. To paint a picture, this help is given by the state to those who have tried all possibilities to pay bills themselves but still struggle to make ends meet.
Norway is known for providing this kind of support to its residents. While other countries in Europe practice it, countries outside the EU rarely have this support system from the state. Take the USA or Russia, for example. If you are jobless and do not have money to pay your bills or buy food, you better find a job quickly because you will not receive any financial assistance from the state. If you still cannot make ends meet, you should consider getting a second job.
According to Statistics Norway, the number of people receiving social help has been increasing. In 2022, it was 10% more than the previous year. We do not know the numbers for 2023 yet, but I bet it is a rising number because the war still continues, banks are upping their interest rates, and prices for food and electricity are going through the roof.
What is interesting in reports from SSB is the age of help recipients. Most of them are in the group from 30 to 39 years old. But the group that skyrocketed last year is 67+. This indicates that retirement in Norway is no bed of roses when we look at expenses overall. In our times, it is unrealistic to hope that after 40 years of working in the country, the country will provide you with a decent living. It is important to do a reality check and start saving up at least a little and invest this money, so you don’t join these statistics.
Another interesting thing in this report is that there were 1700 people who had full-time jobs and still asked for financial help from the state last year. Of course, the majority of people who receive social help are still refugees from Ukraine, Syria, and Somalia. But the fact that retired and people with full-time jobs in Norway have to ask for such help from the state is disturbing.
Last year, I saw a lot of heated debates on American YouTube about how an income of 6 figures is not enough anymore for a family, and people who earn over $100,000 are living from paycheck to paycheck. But of course, a life of paycheck to paycheck there is a life full of mortgage payments, two or more cars for one household, crazy prices for childcare, and health. In Norway, people are given access to medicine that is more or less free, if we are talking about the public health system. Prices of childcare are still not as crazy as in other countries, even countries of the EU. And there is a free education system, including universities. But still, 6 figures might not be enough here anymore.
I will roll out some numbers for my family and do some pretty funny calculations on how much my salary should have been to get a minimum living wage after my rent, utilities, and childcare were paid. But before I do that, I want to emphasize one thing.
I moved here 10 years ago, and for 8 of those years, I was working, except for the first half a year and this last year. Now, I receive social help. But I have paid my share of taxes, both as an employee and as an employer, having had two businesses running. I showed my incomes to the state, and I got my Norwegian citizenship. You cannot receive social help if you are planning to get citizenship.
As a single mom of three kids, I was kind of scared and embarrassed to ask for something extra for my living. If you are from country outside the EU – you will know the feeling. We were raised with the knowledge that the state will not come to save us or give us support. And if you ask, then you might get laughed at or even mobbed for asking.
I received some benefits that I had the right to as a working single mom, but that’s it. At first, I was scared that I would get deported, and then I just thought that I actually had enough money to provide. I went to zero every month after all utilities were paid, and I just had enough to buy basic food. But as I see now, I could have actually asked for social help because, after paying all expenses, I was not even close to the numbers for “daily basic needs” that Norway considers as a living minimum. It makes me wonder how many more people living in Norway can’t make it to the “national minimum living cost” but just don’t ask for help. Of course, we will not see this in future reports from Norwegian statistics.
Some exciting math
Moving forward to now, my biggest expense is of course rent. I was very lucky with the price for the place I live in now. It’s a decent place in the middle of Oslo and it costs 18,000 NOK per month. My last electricity invoice in January was 2,825 NOK. I have a 70 sq m corner flat with a lot of windows, so the heaters are on maximum in every room.
Kindergarten and after school care (AKS) comes at 1,550 NOK. This is very cheap because I get a reduced price based on my low income. As we remember, social help is not an official income, so I get reduced prices everywhere. For people with a household gross income over 450,000 NOK, the price for one child in kindergarten and one child in AKS would be 6,621 NOK. My oldest child is 11 now and does not have after school care anymore, so I do not pay anything for that. But if you have teenage kids, you know that there are more expenses – for pocket money, for other classes they want to attend.
- So, to sum it up:
- Rent: 18,000 NOK
- Electricity: 2,825 NOK
- Kindergarten and after school care (AKS): 1,550 NOK
That’s 22,375 NOK just in basic utilities and rent. Without food, transportation, household items, clothes, phone, internet, extra classes for kids, going out, etc. For this, I’m paying 268,500 NOK per year. By the way, all these payments are covered by social help now.
Now, let’s look at the minimum cost of living decided by the government in Norway for 2024.
According to Government.no , the minimum cost of living in Norway for a single person is 10 412 NOK per month, which includes basic costs such as rent, food, transportation, and other necessary expenses. For a couple living together, the estimated monthly cost is 17,634 NOK in total, or 8,817 NOK per person. The estimated monthly cost for each child is as follows:
- 0-5 years old: 3,332 NOK
- 6-10 years old: 4,420 NOK
- 11-14 years old: 5,580 NOK
- Over 15 years old: 6,418 NOK
On top of the basic utilities and rent cost of 22,375 NOK per month, you should have 23,744 NOK for living expenses. However, this is just enough for your family to break even every month, and does not include a car. This means you need an additional 284,928 NOK per year. All together, my net income is 553,428 NOK, which is roughly equivalent to a gross income of 750,000 NOK if I were working. Please note that I pay the lowest possible price for childcare, which is 17,050 NOK per year. If I had a official gross income of 750,000 NOK, this payment would be 72,831 NOK yearly.According to statistics, only 1 out of 10 working people earn a salary between 700,000 NOK and 1,000,000 NOK in Norway. Additionally, 60% of full-time workers in Norway earn less than the median salary of 572,000 NOK.
Deductions removed
In 2023, the Norwegian government removed an important tax deduction for single parents called “særfradrag”, which was worth 52,400 NOK. Instead, they increased the monthly child benefit, which is good for people on social help because it is not taxable, and NAV does not take it into account when calculating social help payments
I feel lucky to live in Norway and receive help from the state. Social help should be directed towards families with kids, not grown-up, single healthy males who sit in front of the TV every day and refuse to work. Knowing that the state has my back and understands why I’m applying for such help makes me less anxious and stressed.
As a single parent with three kids, it’s impossible to work full-time without any support from family and stay sane. I have my kids 100% of the time, and now, while I’m waiting for my fourth child, I’m studying. This shows NAV that I’m doing something to get towards a higher salary in the future.
As I said, this is temporary help that needs to be justified. You can’t receive money for years without doing anything. If you can work but refuse to do so, NAV will decline your application in the end. Together with NAV, you make a plan of how you will come back to work, if you need to study more, and what obstacles you might need to overcome to achieve your working goals.
Final thoughts
To sum it up, for women or men in the same situation as me – alone, with kids, and not earning a lot – there is no point in killing yourself with a full-time job, while state keeps such high taxes and cuts deduction. No matter how much I earn, if it’s less than 700,000 NOK, I still can and need to apply for social help.
It’s unfortunate that a country with such huge oil wealth, which is dreaming about increasing its demography, is making it difficult for people to have kids by crashing their balls when they decide to do so. However, I’m grateful for the help I’m receiving from the state, and I hope that the government will continue to support families in need.
Maria Markes 