Norway
Make employment in Norway easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in , all in one easy-to-use platform.
- Capital city
Oslo
- Currency
Norwegian krone (kr, NOK)
- Languages
Norwegian
- Population size
5,391,369
Facts & Stats
- Capital city
Oslo
- Currency
Norwegian krone (kr, NOK)
- Languages
Norwegian
- Population size
5,391,369
- Ease of doing business
Very easy
- Cost of living index
$$$$ (3 of 139 nations)
- Payroll frequency
Bi-Monthly/Monthly
- VAT - standard rate
25%
- GDP - real growth rate
1.2
The Kingdom of Norway is a Scandinavian constitutional monarchy famous for its rich cultural history, mythology, and economic performance. Norway is one of the world’s happiest, most developed, and wealthiest nations, strengthened by free universal healthcare and education.
Grow your team in Norway with Remote
Looking to employ workers in Norway? Companies hiring in Norway must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Norway on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Norway team. You can also pay contractors now in Norway with Remote.
Risks of misclassification
Norway, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Norway may lead to fines and penalties for the offending company.
Employing in Norway
The Norwegian Working Environment Act (Arbeidsmiljøloven) spells out provisions for employee protections and workers’ rights, which apply to Norway’s workforce of 2.8 million. In addition to rights guaranteed by legislation, 50% of Norwegian employees belong to unions, which outline further rules in collective bargaining agreements.
Employees in Norway enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Norway.
Minimum Wage
There’s no government-mandated minimum wage in Norway. Employers are free to bargain with unions and individuals, depending on the role and industry. Despite the lack of a minimum wage, Norway has one of the highest average wages in the world, at around 640,000 NOK, equivalent to over $75,000.
High Average Salaries
The average salary in Oslo, Norway is currently around 31000 NOK per month after taxes as of 2021. That is around 3600 USD per month, and one of the highest average salaries for any European capital.
Payroll Cycle
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
Onboarding Time
We can help you get a new employee started in Norway fast. The minimum onboarding time we need is only 4 working days.
12 Public holidays
Competitive benefits package in Norway
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Norway are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Norway
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Norway.
14.10%
National Insurance (Folketrygdloven)
12%
Mandatory Holiday Pay
2%
Mandatory occupational pension scheme (OTP)
NOK 1500 - Accident insurance (calculated at 1500 NOK on top of the base monthly salary)
Types of Leave
Non-union employees are entitled to four weeks and one day of paid time off annually, while unionized employees are entitled to five weeks of paid leave annually. However, holiday days are not paid in Norway.
Every employee is entitled to 25 day vacation days, but whether these are considered paid leave days or not, will depend on whether these are deducted from salary. The annual five week entitlement will have to be deducted from the salary to be considered as paid leave.
For practical reasons, one prescribed way of performing this salary deduction is through a holiday pay distribution in the June of every year. There will be no tax on the holiday pay earned from the previous year. The tax free holiday pay will cover for the lost income. The four weeks of vacation days are deducted from the monthly salary of the employee, and the extra week (to complete the 25 days) is deducted from the holiday pay.
Employment termination
Termination process
Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offenses. Employers are required to discuss the intention to terminate with employees before the decision is finalized.
Notice period
Firstly, a period of 1 months notice period must be provided for all employees regardless of their tenure.
2 months notice: More than 5 years of Employment
3 months notice: More than 10 years of Employment
4 months notice: Employee who is over the age of 50
5 months notice: Employee who is over the age of 55
6 months notice: Employee who is over the age of 60
Severance pay
There are no provisions for severance payments under Norwegian labor law.
Probation periods
Probation periods can last for up to six months under Norwegian regulations.