Today, the OECD presents its “health check” of Norway. They are concerned about the demographic change that awaits Norway with more elderly people. It will cost the state more in pensions and health. But right now the increase in sickness absence is causing concern. The long-term absence not only costs a lot of money, but also increases the risk of people dropping out of working life. They believe that the increasing and high sickness absence in Norway and the proportion receiving disability benefits are a problem for the treasury: Norway spends 22 per cent of public spending on sick pay and disability benefits, according to the OECD. It amounts to 8 per cent, measured against value creation (gross domestic product). That is more than any other OECD country. The OECD believes that sickness absence is not due to Norwegians being sicker than in other countries, but believes that it may be about policy and the organization of the schemes. “Very generous” They call the sick pay scheme “very generous” because employees receive 100 per cent compensation for their wages while they are sick. At the Prime Minister’s half-yearly press conference on Tuesday, Støre said that it was an important principle in Norway that you should not be punished financially if you fell ill. Now the OECD recommends that Norway carry out reforms. The OECD points out that Norway spends a lot of money on benefits, and points out that previous political plans to reduce the proportion of sick and disabled people have had little effect. – Sickness and disability insurance reforms have had limited impact, the organization writes. They are particularly concerned about a strong increase in young people who are ill or disabled, and recommend stricter requirements for receiving disability benefits for young people. They also point out that Norway is worse than other countries in getting people with disabilities into work. In 2023, disability benefits were the next largest benefit with NOK 116 billion. This was an increase of 7 per cent from the previous year, says Nav. This year, Nav expects that disability benefits will increase to NOK 125 billion, while sick pay is expected to cost NOK 62 billion. Questioning the doctor’s scheme They also question the fact that one doctor assesses disability benefits. – Since the medical assessment is often carried out by the injured party’s own doctor, there are many people who are admitted to the scheme, writes the OECD. They follow up. – Reform of the medical assessment procedure is necessary. Medical assessment is still mainly carried out by the injured party’s own GP, which makes the system vulnerable to assessments in favor of the applicant, writes the OECD. It appears from the report that of those who apply for disability benefits, fully 90 per cent are granted this. In comparison, Austria grants disability benefits to only 43 percent of applicants. Less growth in the economy They refer in particular to a high figure for longer sick leave. In general, the OECD is concerned that the Norwegian economy is growing more slowly, and that productivity growth over time has been low. – Growth in the economy has slowed. Inflation is still high, but is expected to decline further. Growth is estimated to slow further before picking up again, writes the OECD. The OECD also believes that it is a weakness in fiscal policy that budgets are set for one year at a time, without planning how expenses will be covered over time. They point out that the growth in public expenditure has been high. Tracks stronger economic growth Despite this, the OECD is positive about Norway’s economic future. They predict increasing economic growth this year and next year. – GDP growth will increase from 0.5 per cent in 2023 to 1.2 per cent in 2024 and 2.1 per cent in 2025, writes the OECD. Director of country reports in the OECD economics department, Luiz de Mello, says the recommendations must be taken as an encouragement to do even better. – I always tell my colleagues in the OECD that it is incredibly difficult to work with Norway. Because it is very difficult to find areas where we can criticize you without working hard, he initially boasts. Published 20.06.2024, at 10.02 Updated 20.06.2024, at 10.36
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Unsettled by increasing sickness absence – calls sick pay “very generous” – news Norway – Overview of news from different parts of the country
