☑️ The Basics

Currency: Norwegian krone (Rate)

Public Holidays: 12 public holidays (see here)

Employer Taxes: 14.1%% of gross salary

Official Language: Norwegian

Payroll frequency: Bi-Monthly, monthly

Three things to know about employing in Norway

1. Employees are entitled to annual holiday of 25 unpaid "work days". However, it is common for companies to offer five weeks of unpaid holiday leave.
2. Instead of paid leave, after one year of employment, employees are entitled to receive holiday pay. Holiday pay is equal to 10.2% of the annual salary and is paid the year after it is earned.
3. Employers are not required to compensate former employees for complying with non-compete agreements during the restriction period.

Employment in Norway

Notice Period

Resignations: One month’s notice.

Dismissals: Notice period depends on seniority

• Less than five years of employment: One months' notice
• Over five years of employment: Two months’ notice
• Over 10 years of employment: Three months’ notice
• Over the age of 50: Four months’ notice
• Over the age of 55: Five months’ notice
• Over the age of 60: Six months’ notice

Termination & Severance

There is no statutory severance pay in Norway, but it can be negotiated through collective bargaining agreements.

Probationary period

Six months

Minimum Wage

There is no set minimum wage in Norway. It is common for minimum wages to be set by collective agreements.

IP protection and non-compete agreements

Non-compete agreements must be reasonable in scope and should be limited to senior employees.

There is no requirement that the employer must compensate the employee during the restriction period.

Working Hours

Normal working hours cannot exceed nine hours per 24 hours, or 40 hours per seven days.

Overtime

Work, including overtime, cannot exceed

• 13 hours of work within a 24-hour period
• 10 hours in seven days
• 25 hours during four consecutive weeks
• 200 hours in 52 weeks

Overtime pay is generally 140% the employee’s hourly wage.

Paid Holidays

Employees are entitled to 25 unpaid work days each year. **Instead of paid leave, employees receive holiday pay, which is equal to 10.2% of the annual remuneration. It is accumulated the year prior to when the holiday is taken. For employees over the age of 60, this amount is 12.50%.

If an employee was not employed the previous year, they can still take time off, but will not be entitled to the holiday pay.

Sick pay and time off

Employees must have completed at least four weeks of employment to be eligible for paid sick leave. They can take up to 52 weeks of sick leave in a year.

The first 16 days of the leave are paid by the employer. After that,the Norwegian National Insurance scheme takes over.

Parental leave

Employees are entitled to 54 weeks of maternity leave paid throgh the National Insurance scheme.

If they avail all 54 weeks of leave, they are paid at 80% of their regular wage. If they take only 44 weeks of leave, they are paid at 100%.

Maternity leave can be split between both parents. However, three weeks before the expected due date and six weeks after birth are reserved for the birth-giver.

A parent can also take an additional year of unpaid leave after maternity leave.

Taxes in Norway

<aside> 💡 You can get a detailed breakdown of the employer contributions for any gross salary by using our Oyster Platform Quote Generator.

For access please email [email protected].

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Employees

Social Security (8.2%)

Income tax

• 0-180,800 NOK: Nil
• 180,880-254,500 NOK: 1.9%
• 254,500-639,750 NOK: 4.2%
• 639,750-999,550 NOK: 13.2%
• 909,500 NOK and above: 16.2%

Employers

Total social contributions

• Social Security (depending on zone): up to 14.1%

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