Good to know
Local Currency: Norwegian Krone (NOK)
Minimum Salary: no national minimum wage.
In 2021, the average wage in Norway across all sectors was NOK 50,790 per month (before tax) according to Statistics Norway,
Salary Calculation: gross to net
Legal Working Hours: The statutory working hours in Norway are:
- 9 hours in a 24-hour period
- 40 hours in a 7-day period
Paid Leave: 25 working days per year.
Employees who turn 60 during a vacation year receive an additional 6 working days of vacation.
About Norway
Norway is a country located in Western Europe, bordered by the Norwegian Sea, Sweden, and Finland. Norway is considered one of the wealthiest and most developed countries in the world, with a high GDP per capita and a very low unemployment rate.
The country’s economy is based on significant natural resources (oil, natural gas, and hydro energy). Norway is also a major exporter of fish and forestry products.
Fun fact: Norway has one of the most generous maternity/paternity leave systems in the world. Mothers are entitled to 44 weeks of paid leave at 80% of their salary or 34 weeks at 100% of their salary. Fathers also have the right to an additional 12 weeks of paid leave to be with their child.
Are you looking to settle in Norway? Do you need help with payroll or human resources management? Our Norwegian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
Ready to Benefit from Norway HR & Payroll Experts?
The Norwegian social security system
The Norwegian social security system is universal, with the entire population covered on the basis of residence.
For employees, there are benefits that partially compensate for loss of income due to illness, disability or age. They are also covered against unemployment and are obliged to be insured against work-related accidents.
Administrative Organisation
The Norwegian welfare system consists of 3 main general schemes:
- The family allowance scheme (barnetrygd)
- The childcare cash benefit scheme (kontantstøtte)
- The national insurance scheme (folketrygden) which covers all other branches.
The National Agency for Employment and Social Protection (NAV) administers the benefits of all branches except health insurance benefits in kind.
The reimbursement of health care costs is the responsibility of the Directorate of Health (Helsedirektoratet) through its external agency Helfo , administration of economy and health.
The tax authorities are responsible for collecting social security contributions. They are headed by the Directorate of Taxes (Skattedirektoratet), the main office of the Norwegian tax administration (Skatteetaten).
Social contributions in Norway
Salary contributions
Salary contributions are calculated based on gross income, without a cap. The salary contribution is not due when the annual income is less than 64,650 NOK. Additionally, the total amount of the contribution should not represent more than 25% of the employee’s income exceeding 64,650 NOK. In 2022, the employee contribution (trygdeavgift) is 8%.
Pensioners pay a 5.1% contribution on the amount of their pension. This rate is also applicable to the professional income of workers under 17 or over 69 years old.
Employer contributions
The employer’s contribution rate varies depending on the geographical location of the employer (see table below). In general, the employer contributes at the full rate of 14.1%, but some regions have reduced rates. However, even in these regions, the full rate of 14.1% is applied to certain sectors.
Special cases: The employer contribution does not apply to parents who pay someone to take care of their children under 12 (or older children who need care). It is also not required for private employers who employ someone for domestic work, as long as the salary paid does not exceed 60,000 NOK per year.
In addition to the national insurance, a portion of the coverage for work-related accidents and illnesses (yrkesskadeforsikring) which is mandatory for employees is provided by private insurance companies. The employer pays a premium to his insurer for this coverage.
Finally, the majority of employers are required to contribute for their employees under the mandatory professional pension scheme (obligatorisk tjenestepensjon, OTP).
Employer Contributions 2022 | |||||
| Geographical area | Regular business sectors | Agriculture and fishing | |||
| I | 14,1% | 14,1% | |||
| Ia | 14,1% | 10,6% | |||
| II | 10,6% | 10,6% | |||
| III | 6.4% | 6.4% | |||
| IV | 5.1% | 5.1% | |||
| Iva | 7.9% | 5.1% | |||
| V | 0% | 0% | |||
Collection
Social security contributions are collected by the Tax Administration (Skatteetaten) along with taxes. Employers must declare the remuneration paid to their employees each month (a-melding) before the 5th of the following month.
Contact
Skattedirektoratet (Directorate of Taxes, main office)
Skatteoppkrever utland (International collection)
Income Tax
Income tax for individuals is withheld from salary in Norway. The Norwegian system of income tax for individuals is based on a dual taxation system, which is:
General Income Tax
A tax resident of Norway must pay taxes on general income earned during a calendar year. General income consists of personal income (salaries, pensions, etc.) and other sources of income such as interest income, rental income from real estate, and income from stocks after deductions. General income is taxed at a fixed rate of 22%.
Personal Income Tax
Progressive Personal Income Tax Individuals is calculated on the personal income defined in the previous paragraph. The progressive income tax is calculated on the gross personal income. This means that deductions to which a person may be entitled will not be deducted before calculating the progressive tax. The progressive income tax operates in 6 steps and averages 17.4% of income when it exceeds 2 million NOK per year.
Tax brackets for personal income tax | |||||
| Step | Income brackets | Taxed percentage | |||
| I | 0 – 190 349 NOK | 0% | |||
| 2 | 190 350 – 267 899 NOK | 1.7% | |||
| 3 | 267 900 – 643 799 NOK | 4% | |||
| 4 | 643 800 – 969 199 NOK | 13.4% | |||
| 5 | 969 200 – 1 999 999 NOK | 16.4% | |||
| 6 | Above 2 000 000 NOK | 17.4% | |||
Source: The Norvegian Tax Administration, 2022
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Norway.
Our Payroll and HR services in Norway
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in Norway
HR & Payroll in Norway
Good to know
Local Currency: Norwegian Krone (NOK)
Minimum Salary: no national minimum wage.
In 2021, the average wage in Norway across all sectors was NOK 50,790 per month (before tax) according to Statistics Norway
Salary Calculation: gross to net
Legal Working Hours: the statutory working hours in Norway are :
- 9 hours in a 24-hour period
- 40 hours in a 7-day period
Paid Leave: 25 working days per year.
Employees who turn 60 during a vacation year receive an additional 6 working days of vacation.
Ready to Benefit from Norway HR & Payroll Experts?
About Norway
Norway is a country located in Western Europe, bordered by the Norwegian Sea, Sweden, and Finland. Norway is considered one of the wealthiest and most developed countries in the world, with a high GDP per capita and a very low unemployment rate.
The country’s economy is based on significant natural resources (oil, natural gas, and hydro energy). Norway is also a major exporter of fish and forestry products.
Fun fact: Norway has one of the most generous maternity/paternity leave systems in the world. Mothers are entitled to 44 weeks of paid leave at 80% of their salary or 34 weeks at 100% of their salary. Fathers also have the right to an additional 12 weeks of paid leave to be with their child.
Are you looking to settle in Norway? Do you need help with payroll or human resources management? Our Norwegian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
The Norwegian social security system
The Norwegian social security system is universal, with the entire population covered on the basis of residence.
For employees, there are benefits that partially compensate for loss of income due to illness, disability or age. They are also covered against unemployment and are obliged to be insured against work-related accidents.
Administrative Organisation
The Norwegian welfare system consists of 3 main general schemes:
- The family allowance scheme (barnetrygd)
- The childcare cash benefit scheme (kontantstøtte)
- The national insurance scheme (folketrygden) which covers all other branches.
The National Agency for Employment and Social Protection (NAV) administers the benefits of all branches except health insurance benefits in kind.
The reimbursement of health care costs is the responsibility of the Directorate of Health (Helsedirektoratet) through its external agency Helfo , administration of economy and health.
The tax authorities are responsible for collecting social security contributions. They are headed by the Directorate of Taxes (Skattedirektoratet), the main office of the Norwegian tax administration (Skatteetaten).
Social contributions in Norway
Salary contributions
Salary contributions are calculated based on gross income, without a cap. The salary contribution is not due when the annual income is less than 64,650 NOK. Additionally, the total amount of the contribution should not represent more than 25% of the employee’s income exceeding 64,650 NOK. In 2022, the employee contribution (trygdeavgift) is 8%.
Pensioners pay a 5.1% contribution on the amount of their pension. This rate is also applicable to the professional income of workers under 17 or over 69 years old.
Employer contributions
The employer’s contribution rate varies depending on the geographical location of the employer (see table below). In general, the employer contributes at the full rate of 14.1%, but some regions have reduced rates. However, even in these regions, the full rate of 14.1% is applied to certain sectors.
Special cases: The employer contribution does not apply to parents who pay someone to take care of their children under 12 (or older children who need care). It is also not required for private employers who employ someone for domestic work, as long as the salary paid does not exceed 60,000 NOK per year.
In addition to the national insurance, a portion of the coverage for work-related accidents and illnesses (yrkesskadeforsikring) which is mandatory for employees is provided by private insurance companies. The employer pays a premium to his insurer for this coverage.
Finally, the majority of employers are required to contribute for their employees under the mandatory professional pension scheme (obligatorisk tjenestepensjon, OTP).
Employer Contributions 2022 | |||||
| Geographical area | Regular business sectors | Agriculture and fishing | |||
| I | 14,1% | 14,1% | |||
| Ia | 14,1% | 10,6% | |||
| II | 10,6% | 10,6% | |||
| III | 6.4% | 6.4% | |||
| IV | 5.1% | 5.1% | |||
| Iva | 7.9% | 5.1% | |||
| V | 0% | 0% | |||
Collection
Social security contributions are collected by the Tax Administration (Skatteetaten) along with taxes. Employers must declare the remuneration paid to their employees each month (a-melding) before the 5th of the following month.
Contact
Skattedirektoratet (Directorate of Taxes, main office)
Skatteoppkrever utland (International collection)
Income Tax
Income tax for individuals is withheld from salary in Norway. The Norwegian system of income tax for individuals is based on a dual taxation system, which is:
General Income Tax
A tax resident of Norway must pay taxes on general income earned during a calendar year. General income consists of personal income (salaries, pensions, etc.) and other sources of income such as interest income, rental income from real estate, and income from stocks after deductions. General income is taxed at a fixed rate of 22%.
Personal Income Tax
Progressive Personal Income Tax Individuals is calculated on the personal income defined in the previous paragraph. The progressive income tax is calculated on the gross personal income. This means that deductions to which a person may be entitled will not be deducted before calculating the progressive tax. The progressive income tax operates in 6 steps and averages 17.4% of income when it exceeds 2 million NOK per year.
Tax brackets for personal income tax |
|||||
| Step | Income brackets | Taxed percentage | |||
| I | 0 – 190 349 NOK | 0% | |||
| 2 | 190 350 – 267 899 NOK | 1.7% | |||
| 3 | 267 900 – 643 799 NOK | 4% | |||
| 4 | 643 800 – 969 199 NOK | 13.4% | |||
| 5 | 969 200 – 1 999 999 NOK | 16.4% | |||
| 6 | Above 2 000 000 NOK | 17.4% | |||
Source : The Norwegian Tax Administration, 2022
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Norway.
Our Payroll and HR services in Norway
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Norwegian Krone (NOK)
Minimum Salary: no national minimum wage.
In 2021, the average wage in Norway across all sectors was NOK 50,790 per month (before tax) according to Statistics Norway.
Salary Calculation: gross to net
Legal Working Hours: the statutory working hours in Norway are :
- 9 hours in a 24-hour period
- 40 hours in a 7-day period
Paid Leave: 25 working days per year.
Employees who turn 60 during a vacation year receive an additional 6 working days of vacation.
Ready to Benefit from Norway HR & Payroll Experts?
About Norway
Norway is a country located in Western Europe, bordered by the Norwegian Sea, Sweden, and Finland. Norway is considered one of the wealthiest and most developed countries in the world, with a high GDP per capita and a very low unemployment rate.
The country’s economy is based on significant natural resources (oil, natural gas, and hydro energy). Norway is also a major exporter of fish and forestry products.
Fun fact: Norway has one of the most generous maternity/paternity leave systems in the world. Mothers are entitled to 44 weeks of paid leave at 80% of their salary or 34 weeks at 100% of their salary. Fathers also have the right to an additional 12 weeks of paid leave to be with their child.
Are you looking to settle in Norway? Do you need help with payroll or human resources management? Our Norwegian payroll and HR experts will provide you with a fast and accurate service in full compliance with local legislation.
The Norwegian social security system
The Norwegian social security system is universal, with the entire population covered on the basis of residence.
For employees, there are benefits that partially compensate for loss of income due to illness, disability or age. They are also covered against unemployment and are obliged to be insured against work-related accidents.
Administrative Organisation
The Norwegian welfare system consists of 3 main general schemes:
- The family allowance scheme (barnetrygd)
- The childcare cash benefit scheme (kontantstøtte)
- The national insurance scheme (folketrygden) which covers all other branches.
The National Agency for Employment and Social Protection (NAV) administers the benefits of all branches except health insurance benefits in kind.
The reimbursement of health care costs is the responsibility of the Directorate of Health (Helsedirektoratet) through its external agency Helfo , administration of economy and health.
The tax authorities are responsible for collecting social security contributions. They are headed by the Directorate of Taxes (Skattedirektoratet), the main office of the Norwegian tax administration (Skatteetaten).
Social contributions in Norway
Salary contributions
Salary contributions are calculated based on gross income, without a cap. The salary contribution is not due when the annual income is less than 64,650 NOK. Additionally, the total amount of the contribution should not represent more than 25% of the employee’s income exceeding 64,650 NOK. In 2022, the employee contribution (trygdeavgift) is 8%.
Pensioners pay a 5.1% contribution on the amount of their pension. This rate is also applicable to the professional income of workers under 17 or over 69 years old.
Employer contributions
The employer’s contribution rate varies depending on the geographical location of the employer (see table below). In general, the employer contributes at the full rate of 14.1%, but some regions have reduced rates. However, even in these regions, the full rate of 14.1% is applied to certain sectors.
Special cases: The employer contribution does not apply to parents who pay someone to take care of their children under 12 (or older children who need care). It is also not required for private employers who employ someone for domestic work, as long as the salary paid does not exceed 60,000 NOK per year.
In addition to the national insurance, a portion of the coverage for work-related accidents and illnesses (yrkesskadeforsikring) which is mandatory for employees is provided by private insurance companies. The employer pays a premium to his insurer for this coverage.
Finally, the majority of employers are required to contribute for their employees under the mandatory professional pension scheme (obligatorisk tjenestepensjon, OTP).
Employer Contributions 2022 | |||||
| Geographical area | Regular business sectors | Agriculture and fishing | |||
| I | 14,1% | 14,1% | |||
| Ia | 14,1% | 10,6% | |||
| II | 10,6% | 10,6% | |||
| III | 6.4% | 6.4% | |||
| IV | 5.1% | 5.1% | |||
| Iva | 7.9% | 5.1% | |||
| V | 0% | 0% | |||
Collection
Social security contributions are collected by the Tax Administration (Skatteetaten) along with taxes. Employers must declare the remuneration paid to their employees each month (a-melding) before the 5th of the following month.
Contact
Skattedirektoratet (Directorate of Taxes, main office)
Skatteoppkrever utland (International collection)
Income Tax
Income tax for individuals is withheld from salary in Norway. The Norwegian system of income tax for individuals is based on a dual taxation system, which is:
General Income Tax
A tax resident of Norway must pay taxes on general income earned during a calendar year. General income consists of personal income (salaries, pensions, etc.) and other sources of income such as interest income, rental income from real estate, and income from stocks after deductions. General income is taxed at a fixed rate of 22%.
Personal Income Tax
Progressive Personal Income Tax Individuals is calculated on the personal income defined in the previous paragraph. The progressive income tax is calculated on the gross personal income. This means that deductions to which a person may be entitled will not be deducted before calculating the progressive tax. The progressive income tax operates in 6 steps and averages 17.4% of income when it exceeds 2 million NOK per year.
Tax brackets for personal income tax |
|||||
| Step | Income brackets | Taxed percentage | |||
| I | 0 – 190 349 NOK | 0% | |||
| 2 | 190 350 – 267 899 NOK | 1.7% | |||
| 3 | 267 900 – 643 799 NOK | 4% | |||
| 4 | 643 800 – 969 199 NOK | 13.4% | |||
| 5 | 969 200 – 1 999 999 NOK | 16.4% | |||
| 6 | Above 2 000 000 NOK | 17.4% | |||
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in Norway.
Our Payroll and HR services in Norway
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure