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Payroll and Benefits Guide Norway

Last updated: May 16, 2023

Currency
Norwegian Krone (NOK)
Employer Taxes
14.10%-19.10%
Payroll Frequency
Bi-Monthly / Monthly
Employee Costs
8.2%
Capital
Oslo
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
up to 14.10%
Social Security (depending on zone)
5.00%
For income exceeding 850,000 NOK
14.10%-19.10%
Total Employment Cost
Employee Employee Payroll Contributions
5.10% – 8.20%
Social Security (income not exceeding 64,650 NOK is exempt; the contribution may not constitute more than 25% of the income for amounts in excess of 64,650 NOK)
Income derived by individuals under 17 or over 69 years of age is subject to the contribution, but at a low rate of 5.1%.
5.10% to 8.20%
Total Employee Cost
Employee Income Tax
22%
Base Income Tax*
For employees earning more than 190,350 NOK a year, a progressive bracket tax is levied on top of the 22 % income tax as follows:
1.7%
208,051 NOK – 292,850 NOK
4.0%
292,851 NOK  – 670,000 NOK
13.60%
670,001 NOK – 937,900 NOK
16.60%
937,901 NOK – 1,350,000 NOK
17.60%
1,350,001 NOK and above
* Please notice that special tax rules apply for persons living in the county Troms and Finnmark

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

There is no official national minimum wage in Norway; minimum wages are often outlined by individual sector collective bargaining agreements and employment contracts.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

In Norway, the employer and employee determine the payroll frequency stipulated in the employment contract. However, salary payments are to be made at least once a month.

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.

Working Hours

General

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

Overtime

All work over a standard working week is to be paid as overtime and is regulated by employment contracts/collective agreements etc. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed. These maximums include 13 hours of work within 24 hours, 10 hours in 7 days, 25 hours in 4 consecutive weeks, and 200 hours in 52 weeks.
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.

Leave

Annual Leave (vacation)

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

For employees over 60, the entitlement increases to 31 days per year. Three weeks of continuous leave can be taken by any employee between 1st June and 30th September, though the employer and employee must agree upon the leave.
Annual leave is compensated at a minimum rate of 10.20% of the employee’s total salary, commonly paid in June. Some collective bargaining agreements will state an increased rate of vacation payment at 12.00%, and employees over the age of 60 are compensated at 12.50% of their total salary.

Leave entitlement is not accrued monthly. An employee that starts on any date before Sept 1 will always be entitled to all contractual days (5 days if the start date is after Sept 1).

Public Holidays

Public holidays that fall on the weekend are usually lost.

Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
28 Mar 2024 Thursday Maundy Thursday
29 Mar 2024 Friday Good Friday
31 Mar 2024 Sunday Easter Sunday
1 Apr 2024 Monday Easter Monday
1 May 2024 Wednesday Labour Day
9 May 2024 Thursday Ascension Day
17 May 2024 Friday Constitution Day
19 May 2024 Sunday Whit Sunday
20 May 2024 Monday Whit Monday
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday 2nd Day of Christmas

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; From the 17th – 52nd day, sick leave is compensated by a Social Security sickness benefit capped at six times the National Insurance base amount of 99,858 NOK. The limit of the sickness benefit is 599,148 NOK.
To be eligible for the Social Security benefit, an employee must meet a specific criterion, including being a member of the National Insurance Scheme, working for four consecutive weeks, and have a minimum income of 49,929 NOK annually.
Within three days of sickness, an employee must provide a completed written sick leave form and if the sick leave exceeds three days, a doctor’s note is required.

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. A parent can take an additional year of unpaid leave after maternity leave. Employees who earn more than 480,000 NOK annually are not entitled to paid parental leave.

Other Leave

In Norway, employers must take out occupational injury insurance for their employees.
If an employee is injured in the workplace, they are entitled to compensation up to 72,662 NOK per year. If the employee is unable to work, they will be entitled to disability compensation. The rate of compensation depends on the employee’s incapacity to work.
To be compensated, an employee must report the workplace injury to the Norwegian Labour and Welfare Administration (NAV), proving that the accident happened in the workplace.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

The termination process varies according to the Employment Agreement or Collective Agreements that are in place and is based on the type of contract and reason for termination. An employer is not required to issue a warning before an employee is dismissed and there is no at-will employment in Norway. As such, an employer must have a solid cause for terminating an employee and must prove the ground for termination.
All employers must adhere to strict requirements outlined in the Working Environment Act. An employer must conduct a consultation with the employee to discuss the potential dismissal before the 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.

If an employee is in their probation period, either the employee or employer can terminate the employment with a 14-day notice period.
The notice period begins on the first day of the month following when the notice was given.

Severance Pay

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

Probation Period

The probation period is optional and it is common to use six months.

Common Benefits

  • Meal Allowance: between 450 – 1000 NOK per month (taxable)
  • Gym/Wellness allowance: between 150 – 600 NOK per month (taxable)
  • Transport/Commuting Allowance: approx. 1000 NOK
  • Private health allowance: between 300-500 NOK per month, highly variable as it is entirely dependent on the worker’s personal situation
  • Private pension: the common employer contribution would be 5-10%
  • Additional leave: common to give 4 additional days off (total of 25 working days)
  • Cell phone allowance: between 300 – 800 NOK per month

VISA

VISA

If you are a citizen of a country outside the EU/EEA, you should contact the Norwegian Directorate of Immigration (Utlendingsdirektoratet, UDI) to determine what regulations apply to you. Norway’s immigration system provides several options for employers of foreign nationals.
Business visitors to Norway typically use a local version of the Schengen C Visa, unless they are visa-exempt based on their nationality. The Schengen Area limits stay for visitors to 90 days in 180 days.
The main work authorization categories are the Residence and Work Permit for Service Providers, suitable for highly skilled staff on temporary assignment to a Norwegian subsidiary or client, available in two-year increments up to a total stay of six years and the Residence and Work Permit for Skilled Workers, suitable for the highly skilled staff locally hired by a Norwegian company, available in three-year increments with no limit on total stay.
A residence permit in a Nordic country does not automatically entitle you to live in another Nordic country. You must check with the relevant immigration authority whether you can move to that country; a double-entry visa may be required.

VAT

General

VAT is 25% standard rate.

Stay up to date on payroll & employment law changes

Version History

February 4, 2024
Tax Brackets have been updated for 2024
February 4, 2024
The threshold amount for employer social security contribution has been increased to NOK 850,000.
February 27, 2022
Payroll contributions and personal income tax rates have been updated.
January 1, 2021
Income Tax Rates: for Income between NOK 184,800 – 260,100, rate changed to 1.7% in additional taxes.
Income Tax Rates: for Income between NOK 260,100 – 651,250 rate changed to 4.0% in additional taxes.
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Questions & Answers

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Perry M.
Perry M.
2 years ago

Hi, are employees allowed to carry over unused vacation days?

Erez Greenberg
Erez Greenberg
2 years ago
Reply to  Perry M.

Hi Perry, employees can carry over up to 10 unused vacation days that must be taken early in the following year.

Anouschka
Anouschka
8 months ago

Hi, do you know the interest rate for late payment for social security contributions?

Enny Shmurin
Admin
Enny Shmurin
7 months ago
Reply to  Anouschka

Hi,

We recommend reaching out to the official website of the Norwegian Tax Administration ( Deadlines and payment – The Norwegian Tax Administration (skatteetaten.no) for information on deadlines and payment.

The interest rates and specific penalties may vary depending on factors such as the duration of the delay and the outstanding amount of contributions. In general, late payment penalties can be either a fixed daily amount or a percentage of the unpaid contributions.

Anouschka
Anouschka
2 months ago

Hi, the income exempt for social security (64.650 NOK) is that amount exempt on a yearly or a monthly basis?

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Payroll and Benefits Guide in Norway

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Payroll and Benefits Guide
in Norway

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Norway
Download:
CSV
PDF
ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
28 Mar 2024 Thursday Maundy Thursday
29 Mar 2024 Friday Good Friday
31 Mar 2024 Sunday Easter Sunday
1 Apr 2024 Monday Easter Monday
1 May 2024 Wednesday Labour Day
9 May 2024 Thursday Ascension Day
17 May 2024 Friday Constitution Day
19 May 2024 Sunday Whit Sunday
20 May 2024 Monday Whit Monday
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday 2nd Day of Christmas