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Norway

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Norway

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  • Norway
  • Taxes
  • Employment cost calculator
  • Benefits
  • Employee rights
  • Employment conditions
  • Remote work
  • Hours of work
  • Payment
  • Leave
  • End of employment
  • Independent contracting
  • Local employment solution

    • Hiring employees in Norway at a glance

    CURRENCY
    Norwegian krone / NOK
    WORKING HOURS
    37.5 - 40 hours
    PUBLIC/BANK HOLIDAYS
    12 days
    CAPITAL
    Oslo
    LANGUAGE
    Norwegian
    REMOTE WORKERS
    15.8% of the population
    MINIMUM HOURLY SALARY
    No statutory min salary
    TAX YEAR
    1st of Jan - 31st Dec
    DATE FORMAT
    DD/MM/YYYY
    MISCLASSIFICATION PENALTIES
    Up to two annual salaries when misclassifying an employee as contractor.
    FUN FACT
    The sun doesn't set in the summer

    Employer tax: 

    16.1% - 39.2%

    Social security -  14.1% (can be lower for some sparsely populated areas)

    Supplementary pension - 2% - 25.1%

    Employee tax: 

    30% - 47.4%

    Social security: 8%

    Income tax: 22% + the following progressive supplements

    GROSS INCOMEADDITIONAL PROGRESSIVE TAX 

    NOK 0 – 190,349

    		0%

    NOK 190,350 – 267,899

    		1.7%

    NOK 267,900 – 643,799

    		4%

    NOK 643,800 – 969,199

    		13.4%

    NOK 969 200 – 1 999 999

    		16.4%

    over NOK 2,000,000

    		17.4%

    Norway Employment Cost Calculator

    Use our handy calculator to understand what are all the employment costs you have to consider in Norway.

    Provide us with some extra details and we will send you a full breakdown of the salary costs.

    Employer of Record in Norway

    Read more
    While an Employer of Record is the most typical way for legally employing a worker in a different country where the company doesn't have an entity, an Employer of Record Norway is not possible. Instead, we directly employ your worker. Doing so, we take care of all Norwegian compliance aspects of employment, including payroll, taxes, statutory benefits, written employment contracts and more.

    We are responsible for:

    Ensuring their employment is compliant with Norway labor laws
    Processing local payroll
    Filing employment related taxes and returns
    Issuing payslips to the employee
    Distributing salary payments

    How employment in Norway works

    COMPANY

    Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

    BOUNDLESS

    Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

    EMPLOYEE

    Signs an employment contract with Boundless and fulfils all of their obligations as a worker for the company.

    Statutory Benefits in Norway

    Read more
    Medical coverage
    Supplementary pension
    Work injury insurance
    Medical examination

    Common Non-mandatory Benefits in Norway

    Read more
    Work from home
    Life insurance
    Private health insurance
    Stock options
    Free meals
    Paid relocation
    Additional payment during parental leave
    Gym membership
    Flexible working hours

    Employee Rights and Protections in Norway

    Read more
    Written employment contract
    Payslip
    Workload revision meeting
    Right to receive compensation during a non-compete period
    Whistleblower protection
    Protection from discrimination, harassment and dismissal of some categories of employees
    Working environment committee
    Overtime pay
    Unemployment allowance

    Paid leave annually: 21- 25 working days.

    Paid paternity leave: 2 weeks

    Paid sick leave: 52 weeks, requires a medical certificate

    Parental leave: 12 months paid + 12 months unpaid

    Paid maternity leave: 12 month and 15 weeks

    Probationary Period

    Read more
    The probationary period in Norway is up to 6 months.

    Payment Frequency

    Employees in Norway are paid monthly.

    End of Employment

    Read more
    Norway has stringent laws that make termination more bureaucratic than most countries. An employer can compliantly dismiss an employee in such cases:

    - Economic reasons (redundancy)

    - Personal reasons (poor performance, gross misconduct)

    - Mutual consent upon signing a termination contract

    In case of a temporary need to reduce the workforce, the employer may temporarily impose layoffs.

    In a dispute concerning termination, an employee may remain in the post until the courts have legally decided the matter.

    Norwegian law does not include legislation on severance pay, but it is customary to offer it as a part of a termination agreement.

    Frequently Asked Questions

    What are my options if I want to hire a worker in Norway?

    While there are generally four ways of employing people across borders, not all are legal or sensible. Here is an overview of each way to employ a worker in Norway, outlining the potential cons.

     

    HQ country employment & payroll

    While the person is in Norway, they are employed and payrolled directly by the company’s HQ entity.
    Cons: This may appear attractive, but it generally isn't legal in the long term. HQ payroll won't be possible if the person is not a tax resident in the HQ country.

     

    Independent contractor agreements

    People are locally registered as sole traders or limited liability company owners in Norway and invoice for their work. There is no direct employment relationship.
    Cons: In Norway, this is not a compliant or legal way to engage full-time workers who work solely for your company. There will be challenges in attracting and retaining talent.

     

    Direct local employer setup

    The company sets up as a fully-compliant local employer. This often involves setting up a local entity and local tax registration.
    Cons: Expensive, time-consuming, high-level of complexity. Unknowns around how obligations and costs will evolve over time. There will be a need to stay on top of changes in regulations.
     

    Employment through a local entity established for the purposes of employment/professional employer organization

     
    Employment is handled by a company that specialises in employing people on behalf of customer companies. That company signs the employment agreement directly with the employee, stating that the employee will provide services for the client company.

    Cons: The ongoing costs may be higher than direct employment. Some education is needed to inform employees about how the employment relationship will work. The setup comes with certain limitations.

    How long does it take to set up a company in Norway?

    Setting up a local company in Norway is relatively straightforward. However, the difficult part comes after the initial setup when payroll needs to be calculated and run every month, taxes filed, benefits extended, change of rules and regulations followed. Here is an overview of everything you will find yourself needing to do.

    Can I employ people as independent contractors in Norway?

    While many employers practice employing remote workers as independent contractors, it's a bad practice. If an individual is giving their full and undivided attention to your company in Norway, treating them as an independent contractor is a likely breach of Norwegian employment laws and of those in your country.
     
    Your company could be liable for fines on owed holiday pay, sick pay, social welfare payments, paternity benefit, maternity benefit, or other legal measures. Since the individuals you are working with do not receive the benefit of local employment laws and protections that are often afforded to people working full-time hours.
     

    What does HR compliance mean in Norway, and why does it matter?

    When you hire employees in Norway, you have certain obligations as an employer. HR compliance is about ensuring your policies and procedures respect all applicable laws and regulations regarding employment and work practices. Complying with Norwegian labor law is fundamental for the correct running of your business - not only because these laws are in place to protect employees and guarantee their rights are safeguarded, but to minimise your risk of liabilities as an employer. Being compliant means respecting and following all local labour laws, sick leave and illness benefits, annual leave, minimum wage, tax credits, working hours regulations.

    How much does it cost to employ someone in Norway?

    As with every other country, certain costs are associated with employing a worker in Norway that come on top of the gross salary you are offering. A Norwegian employer must make social security and supplementary pension contributions based on each employee’s total taxable remuneration monthly. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.

    What does Employer of Record mean in Norway?

    While an Employer of Record is the most typical way for legally employing a worker in a different country where the company doesn't have an entity, in Norway, the model doesn't exist. Instead, the employing organisation employs a worker through a company established explicitly for that purpose. The employee then provides their services to the client company. We are responsible for:
    • informing you about any pre-employment requirements
    • ensuring their employment is compliant with Norwegian labor law
    • informing you about the length of the maternity leave, paternity leave, public holidays, illness benefits, medical benefits
    • providing a locally compliant employment contract
    • processing local payroll
    • filing employment-related tax returns
    • issuing payslips to the employee
    • distributing salary payments
    • payments to the local tax authorities
    Customers that work with Boundless in Norway are responsible for the following:
    • sourcing and recruiting their own workers
    • managing the employee’s day-to-day work load
    • contributing to the personal / professional development of the employee through their work
    • following any guidance we give on employment and HR best practices or legal obligations in Norway, such as the employment contract, public holidays, annual leave, sick leave, maternity and paternity benefits, probationary periods, overtime pay, statutory redundancy payments, liability insurance and many others
    • ensuring that payroll bills relating to their team are paid to Boundless before the cut-off point in each pay cycle

    Who is responsible for filing and paying employees' taxes and social insurance contributions in Norway if employing through a local legal employer?

    Boundless as the Employer of Record Sweden that has established an entity specifically for the purposes of employing on behalf of customers, files all pertinent taxes and contributions as they relate to the compliant employment of an individual in Norway.

    How does Boundless as a company employing workers in Norway ensure HR compliance in Norway?

    We carefully choose employment lawyers or advisories to partner with in each country we operate in, including Norway. They ensure the Norwegian employment contracts, and any other relevant documents required for new employees comply with the local jurisdiction. We have thorough discussions on specific norms such as payroll services, social protection, data protection, notice period or work-from-home regulations. Whenever a potentially sensitive issue arises in Norway, our internal team contacts the relevant firm to ensure all steps are taken to resolve it promptly.

    What are the legal responsibilities of a company when they use an employing service like Boundless in Norway?

    The company remains responsible and informs employees of the day-to-day management of the people and teams that are employed through Boundless, including any disciplinary or performance issues.
     
    Boundless ensures compliance with Norwegian-specific procedures, practices and labour laws while employing people and teams on behalf of the company.

    Do employees get all their rights and benefits when employed through a separate employing entity in Norway?

    Any new employee locally employed through an Employer of Record that has set up a company specifically to employ on behalf of customers gets full employment rights and benefits as specified in Norwegian employment law. They get a locally compliant employment contract, statutory maternity leave, holiday pay, parental benefits, relevant tax credit, etc. 

    What taxes do I need to pay in Norway?

    In Norway, both employers and employees have to pay taxes. Norway employers make social security contributions and pension contributions. Employees contribute to social security and pay income tax. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.

    Choose Boundless as your employment partner in Norway
    Talk to us
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