The redundancy performance of low-income families is better than that of high-income families. In the worst-case scenario, income fell by about one-fifth of ordinary income.
A year ago, after Norway closed down, unemployment immediately surged, and the number of completely or partially unemployed surged to over 400,000.
Recently, Norway has never had so many unemployed people. Unemployment leads to a decline in income. Unemployment benefits only accounted for part of previous wages.
For a family with two adults and two children, one parent will be dismissed from April 1 to the end of the year, and actual after-tax income usually drops by about 10%.
The average annual salary last year was NOK 593,500. The actual income after the change is the income after the change minus inflation.
The benefits of the unemployed were raised last spring, which reduced the decline in income. Among other things, unemployment benefits for the unemployed have been increased. Calculated as part of the previous salary, the unemployment benefit for the first 300,000 Swedish kronor increased from 62.4% to 80%.
Income statistics for 2020 will be put on hold for a long time. However, the Revenue Settlement Technical Calculation Board (TBU) exemplified last year’s layoffs, unemployment benefits and tax changes.
TBU showed off the final before Easter
report. On the same day, NHO and LO interrupted their negotiations during the salary settlement this spring. Now mediation will take place this week.
In the example, TBU studied how the incomes of different types of households change redundantly. Income includes salary, severance payment and child support.
Starting from April 1 last year, half or all of them are assumed to be redundant in the short or long term.
The calculation is for the percentage change in actual income after tax in 2020:
Calculated as a percentage of previous wages, unemployment benefits for high-income earners are less than those for low-income earners. Therefore, in percentage terms, their income has fallen the most.
The basis for comparison is those who work full-time during 2020. Their actual after-tax income growth rate last year was slightly higher than 2% and slightly lower than 2%, depending on the wage level and family size.
In the example, assume that the couple has children between 6 and 18 years old. For children of this age, the child benefit will be 25,300 Norwegian kroner by 2020. This includes family income, as well as salaries and benefits resulting from layoffs.