Norway’s government has announced a wide-ranging review of Norwegian Labour and Welfare Administration, better known as NAV, the powerful agency responsible for unemployment benefits, pensions, sickness pay, and a large part of the country’s social safety net.
An expert panel will be appointed to examine whether NAV is functioning as intended today and whether it is equipped to handle the challenges of the coming decades.
The review comes almost 20 years after the major NAV reform that merged employment services, social services, and parts of the national insurance system into a single organisation.
Labour and Inclusion Minister Kjersti Stenseng said the government accepts that significant problems remain within the Norwegian welfare system.
“Not everything is working optimally today,” Stenseng said in a government statement. “That has to change if we are to reach our goal of getting more people into work and fewer people relying on benefits.”
What Is NAV and Why Does It Matter?
NAV plays a central role in everyday life in Norway. Each year, around 2.9 million people interact with the agency at some point, whether through unemployment support, sickness benefits, disability payments, parental leave, or pensions.
For many foreign residents, NAV is one of the most important (and often most frustrating!) public bodies they deal with.
Long case processing times, complex rules, and inconsistent communication are common complaints, even though the agency is also responsible for delivering some of Norway’s most generous welfare benefits.
Stenseng emphasised that NAV’s dual mission makes reform particularly challenging. “NAV’s main task is to get more people into work,” she said. “At the same time, it must ensure that those who need help receive it at the right time.”
Long Delays and Complex Rules Under Scrutiny
The government pointed to several long-standing weaknesses as reasons for launching the review. These include lengthy case processing times across multiple benefit areas, welfare rules that are difficult to understand, and weak internal oversight highlighted by Norway’s state auditors.
Although many parts of NAV function well, Stenseng said the overall picture shows the need for a broad reassessment of how labour and welfare administration operates today.
This review also ties into the government’s broader “Plan for Norway” strategy, announced in late 2025, which aims to create a more unified and efficient public sector that works better for users.
Welfare Law Reform Already Underway
Alongside the expert review, the government has already established a separate group tasked with simplifying Norway’s national insurance legislation, known as folketrygdloven.
The goal is to make welfare rules easier to understand and better suited to digital systems. According to the government, these legal changes, combined with the expert group’s findings, will form the foundation for developing a modern labour and welfare system for the future.
Preparing NAV for an Ageing Population
While the expert panel will describe NAV’s current situation, its main focus will be on the years ahead. Norway, like many European countries, is facing major demographic changes.
The number of pensioners is expected to rise by 25% by 2035, increasing pressure on the welfare system. At the same time, labour shortages are expected, even as NAV continues to rely on manual case processing for many complex benefit decisions, despite increased digitalisation.
These trends raise fundamental questions about whether today’s organisational structure, division of responsibilities, and cooperation between state and municipal services are still fit for purpose.
What Happens Next?
The expert group will be appointed by the Ministry of Labour and Inclusion and will include representatives from trade unions and key interest organisations. A separate reference group will also be created to ensure broader input from affected parties.
The work will be divided into two phases. First, the group will produce a report based on research, analysis, and assessment of the current system. In the second phase, it will evaluate concrete measures that could improve NAV’s performance and ability to meet its goals.
The expert group has been given around 18 months to complete its work. Details of the group’s mandate and membership have not yet been finalised.
For the millions of people who rely on NAV at different points in their lives, the review could shape how Norway’s welfare system functions for decades to come and determine whether long-standing frustrations finally lead to meaningful change.
