Payroll and Benefits Guide - Norway

Norway
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Currency

Norwegian Kronar
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Capital

Oslo
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Employer Taxes

19.10% 

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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Norway is often called the “Land of the Midnight Sun” due to the phenomenon of continuous daylight during summer.

Norway is known for its progressive stance on environmental conservation and renewable energy.

Norway awarded the Nobel Peace Prize annually in Oslo, its capital city.

The Viking heritage is rich in Norway, with museums and historical sites dedicated to their history.

The country has a strong social welfare system and a high standard of living.

The Norwegian language is closely related to Danish and Swedish.

Norway

Contributions

Employee Payroll Tax

Contribution TypeRate
Social Security5.10% – 8.20%

Employer Payroll Tax

Contribution TypeRate
Social Securityup to 14.10%
For income exceeding 750,000 NOK5.00%

Payroll

Payroll Cycle

In Norway, salary payments must be made at least once a month, with the frequency determined by the employer and employee in the employment contract.

13th Salary

There is no mandatory provision for a 13th-month salary in Norway. Performance-based bonuses are granted at the discretion of the employer.

Work Hours and Week

Full-time employment consists of a maximum 9-hour workday or 40 hours for a 7-day period.

Overtime

All overtime hours in excess of 40 hours a week are paid at an overtime compensation rate; this rate is commonly 140.00% of the employee’s regular rate of pay.

Norway

Leave

Paid Time Off

Employees receive a paid annual leave entitlement of 21 working days per year; most CBAs and many companies offer 25 working days to employees.

Public Holidays

There are 8 holidays.

Sick Days

In Norway, employees will receive sick pay directly from the employer until day 16 of sickness at 100.00% of the employee’s salary. The maximum sick leave entitlement is 52 weeks of leave

Maternity Leave

Female employees are entitled to 59 weeks of paid maternity leave which is compensated by national insurance. The national insurance will pay a mother 80.00% of the regular income for 59 weeks of leave. If the employee opts to take a reduced leave of 49 weeks, they will be compensated at 100.00% of their income.

Paternity Leave

Fathers receive two weeks of unpaid paternity leave.

Parental Leave

Maternity leave may be split between the mother and father, however, three weeks before the expected due date and six weeks after the birth are reserved for the mother. Employees who earn more than 480,000 NOK annually are not entitled to paid parental leave.

Termination

Termination Process

In Norway, the termination process depends on the employment agreement and reasons for termination, with no requirement for a warning before dismissal, no at-will employment, and the need for a solid cause and proof for termination.

Notice Period

If an employee wishes to terminate their employment, they must provide one month’s notice and submit their resignation in writing.

If an employer wishes to terminate an employee, the notice period is dependent on the age and seniority of the employee, as follows:

  • If an employee has served fewer than five years, one month’s notice is required. A shorter period of notice than one month is only permitted if agreed in writing or laid down in a collective pay agreement.
  • If an employee has served over five years of employment, two months’ notice is required.
  • Over ten years of employment, three months’ notice is required.
  • Over the age of 50, 4 months’ notice is required.
  • Over the age of 55, 5 months’ notice is required.
  • Over the age of 60, 6 months’ notice is required.

Severance Pay

No statutory right to severance pay. However, employers often offer severance pay so the employee accepts notice.

Probation Period

Probation Period

No probation period is required but it is common to use 6 months.

Immigration

  • Non-EU/EEA citizens should contact the Norwegian Directorate of Immigration (UDI) to determine applicable regulations.
  • Business visitors typically use the Schengen C Visa, with a 90-day limit within a 180-day period.
  • Work authorization options include the Residence and Work Permit for Service Providers (up to 6 years) and the Residence and Work Permit for Skilled Workers (with no total stay limit).
  • Having a residence permit in one Nordic country doesn’t automatically allow living in another; check with the relevant immigration authority and possibly require a double-entry visa.

For Work Permits

Skilled Worker Permit

Seasonal Worker Permit

Work Permit for Service Providers

Work Permit for Researchers

Work Permit for Athletes and Cultural Workers

Work Permit for Interns and Trainees

Work Permit for Foreign Nationals with a Job Offer.

Documents Required

Completed application form

Valid passport

Employment contract

Educational qualifications

Work experience

Proof of financial means

Health insurance

Accommodation proof

VAT

The standard rate of VAT in Norway is 25%