Norway is located in northwestern Europe with a population of 5.3 million and low unemployment rates. Norway’s economy benefits from oil and gas production, accounting for 20% of the GDP. Norway is ranked as one of the least corrupt countries, and in the top 10 for best countries for business. The currency is the Norwegian Krone.
Employees must be registered in a mandatory pension plan and be registered with the local National Insurance and Directorate of Labour. Foreign nationals will need a D number to begin work. Corporate bank accounts must be opened with at least 30,000 Krone, although no minimum is required for sole proprietorship.
If your company does business in Norway, you need more than a basic payroll process – you need an experienced partner to guide you through the payroll and compliance requirements. At Blue Marble Payroll, we take the risk out of doing business in Norway with cloud-based payroll technology and in-country experts to manage payroll and compliance.
Corporate income tax in Norway is 22%, but finance-related companies pay 25% corporate tax. Tax Returns must be filed by May 31st each year, and advanced payments are required. Working hours are limited to 9 hours in each 24 hour period and 40 hours per 7 days. Norway does not have a national minimum wage, but some industries use collective bargaining to determine minimum wages.
In accordance with the labor laws of Norway, employees who have been employed for at least four weeks before sick leave begins are entitled to 52 weeks of paid sick leave. The employer is responsible for the sick pay for the first 16 days, after this the National Insurance scheme takes over. National Insurance pays 100 percent of the employee’s earnings to a maximum of six times the National Insurance base amount. Employers can establish in collective agreements or employment contracts that they will cover the difference between sick pay from the National Insurance and the employee’s full salary for the same or a shorter period.
If you have employees in Norway, you can simplify your payroll and HR administration with integrated payroll and compliance technology. Our cloud-based payroll has customized monthly reporting so you can view your payroll in real-time across all countries and currencies. Get started and save time and resources with our easy-to-use technology and in-country experts. Learn more