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
Termination
Termination Process One month notice if the employee has been in the company for less than 5 years. Over 5 years, additional time applies.
Advance Notice Advance notice is one month of written notice.
Severance Pay There is no official severance payments for Norwegian employees.
Mandatory Benefits
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.
Minimum Wage
General No official minimum wage.
Non Mandatory
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.
Payroll
Additional Employee Withholding
1. Social Security / Pension - Employer contributes 14.1%.
1. Social Security / Pension - Employee contributes 8.2%.
Paid Time Off
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.
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.
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.
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.
Public Holidays There are 10 public holidays.
VAT
General VAT is 25% standard rate.
