Facts & stats
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
To employ in Norway, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Norway can get complicated, especially without established local relationships.
Remote’s global employment solution makes it easy for your company to employ workers in Norway quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.
Like many other countries, Norway treats self-employed individuals or contractors and full-time workers differently. Misclassifying contractors may result in fines or penalties. Understanding Norway’s employment laws can help you avoid these penalties while ensuring your employees and contractors are treated fairly.
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.
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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
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.
- For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
- We can help you get a new employee started in Norway fast. The minimum onboarding time we need is only 10 days. During this time, Remote handles all the paperwork to get your new employee up and running as quickly as possible.
Competitive benefits package in Norway
Remote can help you provide a comprehensive, customized, and compliant benefits package for your employees in Norway. If you have questions or would like to offer a custom benefit, we would be happy to help. A competitive benefits package in Norway may include:
Taxes in Norway
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Norway.
- 14.1% - Social security contribution
- 8.2% - Social security contribution
- 5.1% - Pension contribution (charged to employees aged 17 - 69 only)
Personal income tax rates
- 22% - Income up to 184,800 NOK
- 23.7% - 184,800 – 260,100 NOK
- 26% - 260,100 – 651,250 NOK
- 35.2% - 651,250 – 1,021,550 NOK
- 38.2% - 1,021,550 NOK and above
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.
There are 10 public holidays in Norway for which employees receive paid time off. However, employees typically must work during the holiday during the prior year to be eligible for paid leave the next year. Otherwise, the employee is entitled to unpaid time off.
Employees are entitled to paid sick leave starting the first day of an illness and lasting up to 52 weeks. Employers are responsible for paying sick leave from the first to the 16th day of an employee’s illness, after which the employee can draw benefits from the National Insurance Scheme for 50 weeks. During the first 3 days of sick leave it is not mandatory to have a doctor's certificate, after the 4th consecutive day it is a mandatory requirement.
New mothers are entitled to 54 weeks of paid maternity leave, compensated at a rate of 80% of their usual pay, or 100% if the employee exercises only 44 weeks of the leave entitlement.
Partners can share their spouses’ maternity leave entitlement except for the three weeks before and six weeks after delivery. An employee whose partner opts to take 54 weeks of maternity leave can have 22 weeks transferred to them by the partner.
Employees who have worked with the same employer for at least three years are entitled to three years of unpaid study leave, which can be taken in one stretch or broken into smaller time periods.
- Work related
Occupational injury insurance is mandatory for Norweigan employees. If an employee is injured at their workplace, they must report the injury to the Norwegian Labour and Welfare Administration (NAV) with proof that the accident happened at work. An employee is entitled to receive up to 72,662 NOK a year in compensation due to a work-related injury. If the employee is unable to work, they are entitled to disability compensation. This compensation will depend on the percentage of incapacity the employee is able to work.
- Hospitalization leave: Each parent is entitled to 10 days of annual leave should their child or child care provider fall ill.
- Adoption: Adoptive parents can exercise the same leave entitlements available to birth parents.
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.
- 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
There are no provisions for severance payments under Norwegian labor law.
Probation periods can last for up to six months under Norweigian regulations.