Overview

Capital
Oslo
Currency
Norwegian Kronar

Taxes

Employer
14.1% - Social Security
Employee
8.2% - Social Security
5.1% - Pension Fund
0% - Up To 158,800
0.8% - 158,800 - 224,900 NOK
1.6% - 224,900 - 565,400 NOK
10.6% - 565,400 - 909,500 NOK
13.6% - 909,500 NOK and above

Minimum Wage

General

There is no minimum wage in Norway.  However, it is common for minimum wages are set by collective agreements in most sectors.

VAT

General

VAT is 25% standard rate.

Payroll

Payroll Frequency

Payroll cycle in Norway is monthly.  

Pay Date

Salaries are paid on the 15th of each month, but if the 15th falls over a weekend, salaries must be paid on the last working day before the weekend. 

Working Hours

Full-time employment consists of a 9-hour workday or 40 hours for a 7-day period. 

Overtime Payment

Overtime is only permitted in irregular circumstances and can’t be requested from the employee on a regular basis. In addition, an employee may not exceed a total of 13 hours of work within a 24-hour period. 

Termination

Termination Process

In Norway, the employer is not required to issue a warning before an employee is dismissed. However, there are strict requirements set forth in the Working Environment Act that must be adhered to.  There is no at will employment in Norway, and therefore, the employer must have a solid, just cause for terminating an employee and they must prove the grounds for termination. 

Before the employee is terminated, the employer must consult with the employee to discuss the possible termination.

Advance Notice

Employees are required to give at least one month’s notice. 

If the employee is being terminated:

  • Over 5 years of employment: 2 months’ notice
  • Over 10 years of employment: 3 months’ notice
    • Over the age of 50: 4 months’ notice
    • Over the age of 55: 5 months’ notice
    • Over the age of 60: 6 months’ notice

The notice period begins the first day of the month following when the notice was given. 

Severance Pay

There is no statutory severance pay in Norway.