How to hire and pay employees in Norway

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Norway Facts and Stats

Currency

Norwegian Krone is the official currency of Norway. Its currency symbol is KR

Employer Costs

Estimated at 30-32% of employees salary

Languages

Norwegian is the official language of Norway

Population

The population of Norway is 5.5 Million

Payroll frequency

Employees are paid monthly

Hiring

Grow your team in Norway

No entity, no problem

To start growing your team in Norway, you must establish a local entity – including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months. Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Norway

Hiring employees in Norway presents a range of benefits and challenges that are important for businesses to consider. On the positive side, Norway boasts a highly educated and skilled workforce, with a strong emphasis on innovation, technology, and sustainability. The workforce is also known for its high proficiency in English, making it easier for international companies to operate. Additionally, Norway’s stable economy, robust infrastructure, and high standard of living contribute to a productive work environment. The country’s commitment to work-life balance, including flexible working hours and parental leave, can enhance employee satisfaction and retention. However, there are some significant challenges. Norway has one of the highest labour costs in the world, driven by generous social benefits such as comprehensive healthcare, pensions, and extended paid leave entitlements. This can significantly impact the overall cost of employment. Furthermore, Norway’s strict labour laws and strong union presence require employers to navigate complex regulations regarding employee rights, working conditions, and collective bargaining agreements. This regulatory environment can increase administrative burdens and limit flexibility in managing the workforce. Despite these challenges, companies that can effectively manage these costs and regulations may find Norway an attractive location for accessing top-tier talent and operating within a stable and prosperous market.

Why Norway is good for remote workers

Hiring remotely in Norway offers employers the opportunity to tap into a highly skilled and tech-savvy workforce without bearing the high costs associated with on-site employment. Norway has a strong digital infrastructure, making remote work seamless and efficient. Additionally, Norwegian employees are accustomed to flexible working arrangements and possess a high degree of autonomy, which can lead to increased productivity in a remote setting. By hiring remotely, companies can access top Norwegian talent while avoiding the significant expenses related to office space, local taxes, and some of the strict employment regulations that come with having a physical presence in the country.

Start growing your remote workforce now

Employer Costs
National Insurance Contributions14.1%
Pension ContributionsBetween 2-7%
Vacation Pay12%
Employment

Probation

Probation periods in Norway can range anywhere between 1 and 6 months.

Emerald Technology can onboard employees in Norway within 48 hours.

Restrictive Covenants

Restrictive covenants in Norway are clauses in employment contracts that limit an employee’s ability to work for competitors, solicit clients, or use confidential information for a certain period after leaving the company, but they must be reasonable in scope, duration, and geography to be enforceable under Norwegian law.

Insurance
01.

Health Insurance

In Norway, all citizens and residents are entitled to access numerous healthcare services without direct charges at the point of service, so the healthcare system is primarily funded through taxation, which could be general taxes or contributions to the National Insurance Scheme. Generally, health insurance contributions are not required as funding comes from general taxations, meaning that those who receive higher incomes, contribute a larger amount to the funding of the healthcare system.

02.

Social Security

Social security contributions in Norway provide funding for many benefits such as healthcare, pensions and family support, so they are mandated by law and managed by the Norwegian National Insurance Scheme. Employers contribute around 14.1% of each employee’s gross salary and employees contribute around 8.2% of their gross income.

Leave Policy
01.

Maternity Leave

In Norway, mothers are entitled to up to 49 weeks of maternity leave with full pay or 59 weeks with 80% pay, depending on the choice of leave duration. This leave can start up to 12 weeks before the expected due date.

02.

Paternity Leave

Employees are entitled to 2 weeks of paternity leave post-birth. There is no mandatory law for employers to pay a salary during this period.

03.

Parental Leave (if applicable)

The combined parental leave available to parents is up to 49 weeks at full pay or 59 weeks at 80% pay. This leave can be shared between parents and includes both maternity and paternity leave.

04.

Sickness Leave

In Norway, the first 16 days of sickness leave are covered in full by the employer. Beyond this point, employees will receive their full pay from the National Insurance Scheme.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Norway within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Length of employment

Notice period

< 5 years

1 month

5 - 10 years

2 months

10 Years +

3 months

10 Years + (age over 50)

4 months

10 Years + (age over 55)

5 months

10 Years + (age over 60)

6 months

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Severance pay is not legally required in Norway unless specified in the employment contract or collective agreements. However, employers may offer severance packages based on company policy or negotiated terms.

Time off

Statutory Time off

Employees in Norway are entitled to 25 working days of paid annual leave per year. This includes a statutory holiday allowance of 12% of the annual salary.

Public Holidays

  • New Year’s Day
  • Maundy Thursday
  • Good Friday
  • Easter Monday
  • Labor Day
  • Constitution Day
  • Ascension Day
  • Whit Monday
  • Christmas Day
  • Boxing Day
Emerald Technology can onboard employees in Norway within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage

Norway does not have a set national minimum wage.

02.

Working time and Overtime

Working Hours: The standard working week in Norway is 40 hours over 7 days.
Overtime: Employees are entitled to receive 140% of their normal wages for overtime, with the rate doubling for overtime on weekends. Overtime is capped at 10 hours per week and 25 hours per month.

03.

Salary Payments

Monthly.

04.

Bonus or 14th month salary (if applicable)

Bonuses and additional salary payments, such as a 13th or 14th-month salary, are not legally required but may be offered by employers as part of their compensation packages or collective agreements.

05.

Income Tax

Annual Income Bracket (NOK)                       Tax Rate

Up to 200,000                                                         0%

200,001 – 600,000                                                1.7%

600,001 – 1,000,000                                            4.0%

Over 1,000,000                                                    13.4%

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