Norway
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Norway
Everything you need to know about payroll, benefits & hiring top talent in Norway
Currency
Norwegian Krone (NOK)
Salary payment frequency
Determined by the parties
Capital
Oslo
Time Zone
GMT +1:00
Official Languages
Norwegian
Is English spoken?
Yes
Quick Links
Introduction
General Overview & Economic Facts
- Norway, officially known as the Kingdom of Norway, is a Nordic country in Northern Europe
- It spans a total area of 385,207 km2 (148,729 sq mi) and had a population of approximately 5.3 million
- Norway is known as one of the world’s happiest, wealthiest and well-developed nations. They maintain the Nordic welfare model with universal health care as well as an extensive social security system
- Norway’s economy ranks 33rd by nominal GDP (2020) and 49th by PPP (2020)
- Norway ranks 1st on the HDI (2019)
Why Employ In Norway?
- The main exports from Norway are mineral fuels, petroleum, gas and fish
- 12.02% of the population is between the ages of 15 and 24 years, with 40.75% of the population being between the ages of 25 and 54. Norway has a fairly youthful population, making it a favourable country to employ young, energetic employees
Overview Of The Labour Law
- The main source of labour law in Norway is the Norwegian Working Environment Act, which sets out the provisions for employee protections and workers’ rights. In addition, collective bargaining agreements are applicable
- The Norwegian labour laws protect employees against discrimination based on age, religion, sexual orientation and race
Fun Country Facts
- Norway supplies England with a Christmas tree every year as a thank you for their assistance during World War II
- Norway knighted a king penguin
- Norway has its own Statue of Liberty
Why Use Playroll Services For Norway?
- Employing in Norway requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Norway
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Social Security
Social Security varies by geographical zone
Calculated on monthly earnings
Social Security varies by geographical zone
Zone I
14.10%
Zone Ia
14.10%
Zone II
10.60%
Zone III
6.40%
Zone IV
5.10%
Zone IVa
7.90%
Zone V
14.10%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Social Security
Called National Insurance
Calculated on monthly earnings
Cap of 25% of personal income which exceeds NOK 64,650.00
Non pensionable income
8.20%
Pensionable income
5.10%
Occupational Pension Scheme
There are two types of occupational pension plans:
1) Defined benefit pension plans and
2) Defined contribution pension plans
This is not applicable if the employee has an A1 certificate according to which the employer pays social tax and pension costs in the employee’s home country
2.00%
Income Tax
Income tax is on worldwide income
Income bracket per annum
0.00 – 190,349.00
22.00%
190,350.00 – 267,899.00
22.00% base rate plus Income between NOK 190,350.00 – NOK 267,899.00 @ 1.70% bracket tax
267,900.00 – 643,799.00
22.00% base rate plus Income between NOK 267,900.00– NOK 643,799.00 @ 4.00% bracket tax
643,800.00 – 969,199.00
22.00% base rate plus Income between NOK 643,800.00 – NOK 969,199.00 @ 13.40% bracket tax
969,200.00 – 1,999,999.00
22.00% base rate plus Income between NOK 969,200.00 – NOK1,999,999.00 @ 16.40% bracket tax
2,000,000.00 or more
22.00% base rate plus income over NOK 2,000,000.00 @ 17.40%
Employment Terms
General
Minimum Wage
- No statutory minimum wage
- Minimum wage is determined by the applicable collective agreement
Working Hours
- Maximum of 9 hours per day and 40 hours per week
- Minimum of 30-minute meal interval after 8 hours of work
- Typical working hours are 08h00 to 17h00, Monday to Friday
Overtime
- Maximum of 200 hours per year and 25 hours per month
Notice Period
- Employed between 0 and 5 years- 1 months’ notice
- Employed between 5 and 10 years- 2 months’ notice
- Employed for 10 or more years, age 50 and younger- 3 months’ notice
- Employed for 10 or more years, age 50 to 54 years- 4 months’ notice
- Employed for 10 or more years, age 55 to 59 years- 5 months’ notice
- Employed for 10 or more years, age 60 years and older- 6 months’ notice
Severance Pay
- No statutory severance pay
Probation Period
- No statutory probation period
- Employees can expect of probation period of a maximum of 6 months
Bonus
- There is no statutory bonus
Public Holidays
Public holidays 2022
- January 1st – New Year’s Day
- April 14th – Maundy Thursday
- April 15th – Good Friday
- April 17th – Easter Sunday
- April 18th – Easter Monday
- May 1st – Labour Day
- May 17th – Constitution Day
- May 26th – Ascension Day
- June 5th – Whit Sunday
- June 6th – Whit Monday
- December 25th – Christmas Day
- December 25th – 2nd Day of Christmas
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- Age 60 and younger- 25 days per year
- Age 60 and older- 30 days per year
Sick Leave
- Paid leave
- Paid by employer and Social Security
- 260 days per year
Maternity Leave
- Part of parental leave
Paternity Leave
- Part of parental leave
Parental Leave
- Paid leave
- Paid by Social Security
- 49 weeks- 1 child and 100% of salary claimed
- 59 weeks- 1 child and 80% of salary claimed
- 66 weeks- 2 children and 100% of salary claimed
- 80 weeks- 2 children and 80% of salary claimed
- 95 weeks- 3 or more children and 100% of salary claimed
- 115 weeks- 3 or more children and 80% of salary claimed
Adoption Leave
- Paid leave
- Paid by Social Security
- 46 weeks- 1 child and 100% of salary claimed
- 56 weeks- 1 child and 80% of salary claimed
- 63 weeks- 2 children and 100% of salary claimed
- 77 weeks- 2 children and 80% of salary claimed
- 92 weeks- 3 or more children and 100% of salary claimed
- 112 weeks- 3 or more children and 80% of salary claimed
Additional Parental Leave
- Paid leave
- Paid by Social Security
- 1 year per child
Start hiring in Norway today!