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. The currency is the Norwegian Krone. Corporate bank accounts must be opened with at least 30,000 Krone.

Payroll and Tax Considerations in Norway

  • Employment contracts must be in writing and signed within one month of the employee start date
  • There are no minimum wages set by the government. Some industries have a standard wage determined by collective bargaining agreements
  • Overtime cannot exceed 10 hours per 7 days, 25 hours for 4 consecutive weeks, or 200 hours within a 52 week period
  • Employees are paid 140% of normal wages for overtime
  • There are no provisions regarding severance pay
  • The general income tax for people who make less than NOK 180,800 is 22%. Employees making more than this pay an additional percentage depending on the amount earned, up to an additional 16.2% for those earning more than NOK 999,550

HR and Statutory Requirements

  • Employees are entitled to 25 days of annual leave each calendar year
  • Employees over 60 are entitled to 6 extra days of leave
  • Employees are entitled to 3 self-declared sick days. For more than 3 calendar days the employee must present a medical certificate
  • Sick leave can be declared 4 times in a 12-month period
  • Female employees receive 12 weeks of maternity leave
  • There is a parental benefit period of 49 weeks (15 weeks for each parent) that includes 100% wage coverage or 59 weeks (19 weeks per parent) with 80% wage coverage
  • Fathers are entitled to 2 weeks of paternity leave
  • The legal retirement age is 67. To be eligible for retirement an employee must have had at least 3 years of insurance
  • Retirement is paid as a base amount fixed for the year, unrelated to previous income

Holidays in Norway

  • January 1 – New Year’s Day
  • April 14 – Maundy Thursday
  • April 15 – Good Friday
  • April 17 – Easter Sunday
  • April 18 – Easter Monday
  • May 1 – Labor Day
  • May 17 – 17 May Constitution Day (1814)
  • May 26 – Ascension Day
  • June 5 – Whit Sunday
  • June 6 – Whit Monday
  • December 25 – Christmas Day
  • December 26 – Boxing Day

If you are expanding in Norway or need to simplify operations, we can help. Blue Marble has a cloud-based payroll platform with customized reporting to ensure compliance. Our service model gives you a dedicated US-based team and direct access to in-country experts when questions come up. Simplify your payroll in Norway and ensure compliance with integrated tools and resources for your global workforce.  Learn more