New government figures show that a single refugee with two children can in practice receive public benefits equivalent to an annual salary of almost NOK 600,000.

Minister of Labour and Social Inclusion Kjersti Stenseng (Ap) has been under intense pressure from Norwegian municipalities, after several of them have told stories about how social assistance budgets are dwindling – and that it doesn’t pay to work for many of the refugees arriving in the country.

Now she presents a calculation that shows that a single refugee with two children today in practice can receive public benefits equivalent to an annual salary of almost NOK 600,000.

The calculation is based on social assistance, coverage of rent and tax exemption – and is one of the main arguments in favour of the government’s announced tightening of integration policy.

According to the Ministry of Labour and Social Inclusion, the figure is based on a theoretical but realistic scenario in the capital. The calculation is based on indicative government rates for social assistance: NOK 8,100 per month for the adult, NOK 4,050 per child, and full coverage of rent for a three-room apartment of around NOK 18,200. In addition, a discretionary amount has been included for other expenses.

In total, this results in a monthly benefit of NOK 36,400, equivalent to NOK 436,800 a year. Since social assistance is tax-free, this corresponds to a gross earned income of around NOK 576,000 – almost NOK 600,000 – to be left with the same amount after tax.

The Ministry also points out that Oslo has higher municipal rates than the state rates and that, according to Statistics Norway, the average rent for a three-room apartment in Oslo and Bærum is more than NOK 19,000 a month.

Refugees currently receive introductory benefits as long as they participate in the introductory programme, which is mandatory for people aged between 18 and 55. The benefit is equivalent to two times the National Insurance basic amount for adults. Any social assistance is deducted from this benefit.

The government now wants to replace the current scheme with a new integration benefit, where the maximum amount is set at NOK 383,000 a year. At the same time, it is proposed that refugees will no longer be entitled to social assistance or housing benefit for the first five years in Norway, with the exception of emergency assistance.

The reason for this is that an increasing proportion of refugees receive social assistance. In 2024, this was over 31 per cent, according to Statistics Norway. The proportion is significantly higher than for both other immigrant groups and the general population.

The Ministry’s calculations are supported by some stakeholders in the field. At the same time, the Norwegian Organisation for Asylum Seekers (Noas) believes that the presentation is misleading. Spokesperson Jon Ole Martinsen points out that the introductory benefit is currently around NOK 18,600 a month after tax, and that the benefit varies considerably depending on place of residence.

“This particularly affects those who live in central areas with high rents. With the proposed rates, it will in practice be difficult to settle in the big cities,” says Martinsen.

Noas fears that lower benefits will lead to increased exclusion, and refers to research which, according to the organisation, does not document that cuts in support result in a faster transition to work.

The government, for its part, believes that the current system weakens work incentives and that a change is needed to get more people into work and fewer people on permanent public support.

 

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