Payroll & Employment Guide Norway flag

Payroll & Employment Guide Norway

Norway is known for its high standard of living, strong economy, and transparent labour market. With a skilled, well-educated, and English-speaking workforce, it’s a popular destination for businesses looking to expand in the Nordics. Competitive employment benefits and a stable regulatory environment make Norway an ideal choice for remote hiring and global growth.

Payroll & Employment Guide Norway
CurrencyNorwegian Krone (NOK)
LanguagesNorwegian
Minimum wageNOK 40,075/month
Employment cost18% higher than employee's gross salary
Working hours40 hours per week
VAT25%
Probation periodUp to 6 months
Paid leave days25 working days
Categories

Hiring guide

Norway offers a highly regulated but employer-friendly hiring environment. From collective agreements to generous leave policies, businesses must stay compliant with detailed employment rules. With no statutory minimum wage but high average salaries, hiring in Norway also requires careful cost planning.

Get details on Norway’s employment laws, tax obligations, and cost structures in our complete hiring guide before expanding.

Learn more

Employment contracts

In Norway, employment contracts must be in writing and provided no later than one month after the employment begins. These contracts must include job responsibilities, salary, working hours, and notice periods.

Notice periods: Range from 1 to 6 months depending on tenure and agreement.

Termination of employment: Must follow structured legal processes and can vary depending on contract terms and union rules.

Want to learn more about employment contracts in Norway? Get our full template now!

Employee benefits

Employee benefits in Norway are largely governed by law and collective bargaining agreements. In addition to mandatory social security, employers often offer generous perks to remain competitive.


Mandatory benefits: Old-age pensions, disability benefits, medical benefits, holiday pay, etc.
Common perks: Tax-free company holiday accommodations, tax-free overtime subsistence for meals up to NOK 200, health and wellness benefits, childcare subsidies, and flexible working arrangements.

Leave policies: Annual leave, parental leave, sick leave, maternity, paternity, bereavement, educational leave, and public holidays.

Want to learn more about all the employee benefits available in Norway?

Taxes

Norway has a structured and progressive tax system. Employers are responsible for deducting and submitting income taxes and social security contributions to the Norwegian Tax Administration.

  • Income tax: Flat 22% on ordinary income (net income after deductions). A bracket tax on personal income that ranges from 0% to 17.7% depending on income level
  • Dividends and capital gains: Taxed at an effective rate of 37.84% on shares
  • Wealth tax: Applies to net wealth over NOK 1,760,000. 1.0% on wealth above the threshold, and 1.1% on higher wealth levels, depending on the municipality.
  • Social security contributions: Employer contribution is 14.1%.
  • Special tax regimes: The PAYE scheme offers a flat 25% tax for certain foreign workers staying temporarily in Norway
  • VAT: 25%

Want to find out more about Norway’s tax allowances and similar tax regulations? Click here to read more now!

Payroll

Salaries are typically paid monthly and must comply with the terms outlined in the employment contract. Payments are usually made at the end of each month.

Salary payment deadline: Typically by the end of each month

Taxes and contributions payment deadline: Monthly, along with payroll

Payroll declarations deadline: Monthly, to the Norwegian Tax Administration

Payroll currency: Norwegian Krone (NOK)

Work permits & visas

Most EU/EEA citizens do not need a visa to work in Norway, but registration is required. Non-EU citizens must apply for a residence permit for work.

Types of permits: Residence permit for skilled workers

Process length: 3- 4 months

Process cost: Starts at 3250€

Want to learn more about obtaining visas and work permits in Norway? Get our full country handbook now, or click here to find out more!

EOR services

Using EOR services in Norway allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:

  • Legal employment and contracts
  • Payroll processing
  • Tax withholding
  • Benefits administration
  • Onboarding/offboarding employees

PEO services

Using PEO services in Norway provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Norway but need support to manage their workforce operations, including:

  • HR support and workforce administration
  • Payroll and benefits management
  • Compliance and local labour law guidance
  • Employment contracts assistance

Payroll calculator

Native Teams provides a payroll calculator adjusted per Norway’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in Norway with our localised calculator. Designed to meet all payroll and compliance requirements.

Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.

Last update: July 30, 2025

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Frequently asked questions

Freelancers and gig workers in Norway are generally considered self-employed and are responsible for managing their own taxes and social security contributions. As a client, you are not required to make contributions on their behalf. 

However, to avoid potential misclassification, it’s important that the working arrangement does not resemble an employer-employee relationship. Always ensure that you have a clearly defined contract that outlines the scope of work, deliverables, payment terms, and other key conditions.