Payroll & Employment Guide: Norway

Hiring in Norway

When hiring in Norway, employers should first determine whether a collective bargaining agreement (CBA) applies, then ensure proper registrations and social security arrangements are in place. For non-EEA hires, work and residence permits must be secured before employment starts.

Key hiring steps include:

• Identifying the relevant CBA and sectoral minimum wage rules, where applicable.
• Registering the company with the Brønnøysund Register Centre and the Norwegian tax authorities.
• Setting up employer social-security contributions and occupational pension (OTP) schemes.
• Managing visas and work/residence permits for non-EEA nationals.

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Employee Benefits

Norway offers strong statutory and CBA-based employee protections, especially in relation to annual leave, sick pay, and parental leave. Employers are also required to provide occupational pensions and often add extra benefits to stay competitive.

Mandatory Benefits:

• Annual Leave: Typically 25 working days of annual leave (statutory patterns vary; some CBAs specify 21 or 30 days). Employees over 60 often receive additional leave days.
• Sick Leave: Employers usually pay full salary for the first 16 calendar days of sickness. Longer-term sick leave is covered by national insurance (NAV), and employer reimbursement rules may apply.
• Parental Leave: Norway has a generous parental-leave system with shared quotas and paid leave via NAV. Employers must coordinate with NAV and the employee regarding leave and benefits.
• Occupational Pension (OTP): Employers are required to provide an occupational pension scheme for eligible employees.

Common Employer Benefits:

• Enhanced occupational pension contributions (above the minimum OTP level).
• Private health insurance or wellness benefits.
• Bonuses, flexible working arrangements, and other perks to attract and retain talent.

A well-designed benefits package in Norway balances statutory obligations with local expectations around pensions, wellness, and work–life balance.

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Taxes in Norway

Norway operates a progressive personal-income tax system. Employers must withhold tax under the PAYE scheme and remit employer social contributions.

Income Tax & PAYE:

• Employers deduct income tax directly from salary based on employee tax cards and remit it to the tax authorities.
• Employees are taxed on their worldwide income if considered tax-resident; non-residents may be subject to special regimes.

Employer Contributions:

• Employer national-insurance contributions (social security) apply, with rates varying by municipality and sometimes by sector.
• Employers also fund occupational pension (OTP) contributions and may pay additional insurance or accident premiums depending on sector risk.

The combination of income tax, national insurance, and pension costs shapes the total cost of employment in Norway and must be factored into any hiring strategy.

Payroll in Norway

Payroll in Norway must be processed in NOK and comply with national rules on tax withholding, employer contributions, and sectoral minimum wages where applicable.

Payroll Currency: NOK.

Payroll Cycle:
Monthly payroll is standard in Norway. Contracts should specify pay frequency and the exact pay date.

Payslips & Deductions:
Payslips generally show:

• Gross salary and any variable components (e.g., overtime, bonuses).
• PAYE income tax withheld.
• Employee social contributions where applicable.
• Employer contributions (national insurance) and pension details.
• Net pay and pay period.

Minimum Wage Compliance:
Although Norway has no universal national minimum wage, several sectors are covered by statutory or CBA-based minimums. Employers must refer to Labour Inspection guidance to ensure applicable hourly minima are respected.

Looking for help with Norwegian payroll, including national-insurance, pension, and sectoral minimum wage checks?

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Legal Regulations

Norwegian labour law is primarily governed by the Working Environment Act, national regulations, and collective bargaining agreements. These define working time, dismissal rules, health and safety, and pay structures.

Key Employer Responsibilities:

• Register with the tax authorities and NAV as an employer.
• Ensure occupational pension (OTP) schemes are set up and funded for eligible employees.
• Follow statutory sick-pay procedures and required reporting to NAV.
• Comply with working-time limits, rest periods, and overtime rules.

Total Employment Cost:
Employers should plan for gross salary plus employer contributions for social security, pension (OTP), insurance, and other sector-specific costs. Total employer burden commonly ranges from roughly 14–25% or more on top of gross salary.

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Work Permits & Visas for Norway

Work-permit rules in Norway depend on the worker’s nationality and the nature of employment. EEA/Swiss nationals generally benefit from free movement, while non-EEA nationals require employer-sponsored permits.

EEA/Swiss Nationals:
Citizens of EEA countries and Switzerland can typically live and work in Norway without a traditional work permit, though they may need to register their residence and employment.

Non-EEA Nationals:
Non-EEA workers generally require an employer-sponsored work and residence permit. Common permit types include:

• Skilled Worker permits
• Seasonal worker permits
• Intra-Company Transfer permits

The employer is usually responsible for providing documentation, sponsoring the permit application, and ensuring ongoing compliance with immigration rules.

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EOR & PEO Services in Norway

Employer of Record (EOR) and Professional Employer Organisation (PEO) services in Norway help you hire locally without building a full in-country HR and payroll function.

Employer of Record (EOR) in Norway:

An EOR can:

• Draft Norwegian employment contracts compliant with the Working Environment Act and relevant CBAs.
• Run payroll and withhold PAYE and NAV contributions correctly.
• Administer occupational pension (OTP) and manage sick-pay reporting to NAV.
• Coordinate or sponsor work permits for non-EEA hires.

PEO Services in Norway:

For companies that already have a Norwegian entity, PEO services provide:

• Payroll administration and tax filing support.
• HR administration and day-to-day workforce support.
• CBA interpretation and employment-terms guidance.

These solutions reduce risk and complexity while ensuring local compliance.

EOR in Norway

Payroll Calculator

Estimate gross-to-net pay, employer national-insurance rates, and pension liabilities for Norway using Dhi ADT’s payroll calculator. Model different salary levels, municipal contribution zones, and OTP configurations.

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