Norway

Employment

A written contract between the employer and the employee discussing the implied terms of employment.

Payroll

The payroll frequency is agreed in the employment contract by the employee and the employer.

HR & Labor

Working Hours: Working hours are 9 hours every 24 hours and 40 hours per seven days. Each employee is entitled 30 minutes break after working five consecutive hours. Overtime is only permitted if there is an exceptional and time limited need for it. Minimum Age: The minimum working age is 15 years old.

Immigration

To work in Norway, an employee must obtain a worker’s permit. EU and citizens of the Nordic countries do not require a working permit. The permit must be granted prior to arrival, unless the employee is defined as “specialist”, in that case the permit can be obtained after arriving in Norway. An employee can apply through foreign services in their home country or the employer can apply for the employee directly.

Minimum Wage

No official minimum wage.

Pension Fund

Everyone who has lived in Norway after the age of 16 for 40 years is entitled to state funded pension of NOK 88, 730 per year.

Employer contributes 14.1% of regular wages.

Employee contributes 8.2% of gross income. Contributions are not made on income less than NOK 39,600.

Severance Payments

There is no official severance payments for Norwegian employees.

Advance Notice

Advance notice is one month of written notice.

Termination Procedure

One month notice if the employee has been in the company for less than 5 years. Over 5 years, additional time applies.

Sick Days

Employer is responsible for the first 16 days of the sick leave of the employee, afterwards the National Insurance Scheme will pay for a maximum of 36 weeks.
To be sickness benefits from the Norwegian Labor and Welfare Administration, one must be fully able to work for 26 weeks after last receiving sickness benefit. Doctors' certificate required when sick for more than 3 days to receive benefits.

Public Holidays

There are 10 public holidays.

Vacation Days

Four weeks and 1 day of paid vacation time. Holiday pay is 10.2% of the annual remuneration. An extra 5 weeks of vacation days are granted once an employee reaches the age of 60 years old.

Parental Leave

In Norway, parents are entitled to receive parental leave of either 49 weeks paid 100%, or 59 weeks paid 80% or salary. Some parents choose 100 percent (due to better benefits), and extend their leave unpaid (up to 14 days). In the 100% paid scheme, 5 additional weeks are paid per additional child, and in the 80% paid scheme, 7 additional weeks are paid per additional child.
The first three weeks of this period must be used prior to the birth by the mother.

Maternity Leave

46 weeks of full paid leave and 10 additional weeks of leave at 80% rate. An additional 5 weeks at 100% rate and an additional 7 weeks at 80% rate are granted for every extra child.

Expat Benefits

Expats can choose 10% deduction of gross income with salary ceiling of NOK 40,000 per year. The deduction is available for the first two years of living in Norway.

Additional Employee Withholdings

1. Social Security / Pension - Employer contributes 14.1%.

1. Social Security / Pension - Employee contributes 8.2%.

VAT

VAT is 25% standard rate.