Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
There is no minimum wage in Norway. However, it is common for minimum wages to be set by collective agreements in most sectors.
The payroll cycle is determined by the parties involved but must be made at least monthly.
Full-time employment consists of a 9-hour workday or 40 hours for a 7-day period.
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.
Other overtime limits include:
- 10 hours in 7 days.
- 25 hours during 4 consecutive weeks.
- 200 hours in 52 weeks.
Overtime pay is either a fixed supplement agreed upon by the employer and employee or 140% the employee’s hourly wage.
In Norway, employees are entitled to 25 unpaid workdays as per the Holidays Act, however, it is common for employees to receive 5 weeks. Instead of paid leave, employees receive holiday pay.
Holiday pay is accumulated the year prior to when the holiday is taken. It is paid out to the employee on the payday prior to when the holiday is taken or at the latest, one week before. Alternatively, it is possible and common practice to pay out the holiday pay on a chosen month, one time a year. If an employee was not employed the previous year, they are able to take time off, however, they are not entitled to the holiday pay.
In Norway, the employer must set aside 10.20% of the salary. If the employee has a commission or bonus-based salary, the bonus or commission must be included when calculating the holiday pay.
For employees over the age of 60, the amount to be set aside is 12.50%.
There are 10 public holidays.
For the first 3 days of an illness, an employee is not required to provide a certificate from a doctor. After the 4th day, this is required.
To be eligible for sick leave and benefits, the employee must have completed at least 4 weeks of employment. The maximum benefit is 52 weeks and begins on the first day of the illness and must be documented by a medical certificate.
For the first 16 days of the illness, it is the responsibility of the employer to pay the employee the sick pay. After 16 days, the Norwegian National Insurance scheme takes over.
In Norway, mothers are entitled to up to 54 weeks of maternity leave.
National insurance is responsible to pay the mother at a rate of 80% of their regular pay if she takes all 54 weeks of maternity leave or at a rate if 100% if she chooses to take 44 weeks of maternity leave.
Paternity leave falls under parental leave.
Maternity leave may be split between the mother and father, however, 3 weeks before the expected due date and 6 weeks after the birth are reserved for the mother. A parent can take an additional year of unpaid leave after maternity leave.
Work related injury leave: In Norway, it is mandatory for the employer to take out occupational injury insurance for the employees.
If an employee is injured at their workplace, they must report the injury to the Norwegian Labour and Welfare Administration (NAV) with proof that the accident happened at work.
An employee is entitled to receive up to 72,662 NOK a year in compensation due to a work-related injury.
If the employee is unable to work, they are entitled to a disability compensation. This compensation depends on the percentage of the incapacity the employee is able to work.
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.
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 on the first day of the month following when the notice was given.
There is no statutory severance pay in Norway.
VAT is 25% standard rate.