Payroll and Benefits Guide Norway
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
14.10 – 19.10%
|
Social Security (applied rate depends on region)
|
| 14.10%-19.10% |
Total Employment Cost |
| Employee Payroll Contributions | |
|
5.10% – 8.20%
|
Social Security (income not exceeding 64,650 NOK is exempt; the contribution may not constitute more than 25% of the income for amounts in excess of 64,650 NOK)
Income derived by individuals under 17 or over 69 years of age is subject to the contribution, but at a low rate of 5.1%.
|
| 5.10% to 8.20% |
Total Employee Cost |
| Employee Income Tax | |
|
22%
|
Base Income Tax*
|
| For employees earning more than 217,400 NOK a year, a progressive bracket tax is levied on top of the 22% income tax as follows: | Annual |
|
0.0%
|
Up to 217,400 NOK |
|
1.7%
|
217,401 – 306,050 NOK |
|
4.0%
|
306,051 – 697,150 NOK |
|
13.70%
|
697,151 – 942,400 NOK |
|
16.70%
|
942,401 – 1,410,750 NOK
|
|
17.60%
|
1,410,750 NOK and above
|
Employer taxes
Employee taxes
Minimum Wage
General
There is no official national minimum wage in Norway; minimum wages are often outlined by individual sector collective bargaining agreements and employment contracts.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
In Norway, the employer and employee determine the payroll frequency stipulated in the employment contract. However, salary payments are to be made at least once a month.
13th Salary
There is no mandatory provision for a 13th-month salary in Norway. Performance-based bonuses are granted at the discretion of the employer.
Working Hours
General
Full-time employment consists of a maximum 9-hour workday or 40 hours for a 7-day period.
Overtime
| Aspect | Regulation Details | Notes |
| Statutory Ordinary Hours | 9 hours per day and 40 hours per week. | Overtime (overtid) is triggered when work exceeds these limits. |
| Collective Agreement Standard | Many Collective Agreements (CAs) set a lower threshold, such as 7.5 hours per day and 37.5 hours per week, triggering overtime earlier. | |
| Overtime Requirement | Overtime can only be imposed when there is an exceptional and temporary need for it (e.g., unexpected illness, emergency). It cannot be a planned, permanent arrangement. | |
| Absolute Daily Cap | Total working hours, including overtime, cannot exceed 13 hours per 24-hour period. | CAs may agree to extend this to 16 hours, but compensatory rest must be granted. |
| Absolute Weekly Cap (Average) | The average cumulative working hours must not exceed 48 hours per week over an 8-week reference period. | |
| Employee Right to Refuse | Employees have the right to be exempted from overtime work at their request for health or compelling social reasons. |
Mandatory Overtime Pay Rates
Overtime must be compensated with a minimum monetary supplement. While the total hours may be taken as time off in lieu, the premium supplement must always be paid out in money.
| Day/Condition | Statutory Minimum Compensation Rate (Supplement) | Total Pay Rate | Notes |
| Standard Overtime Pay | +40% of the employee’s ordinary hourly wage. | 140% | This is the non-negotiable legal minimum for all overtime hours worked. |
| Higher Rates | N/A (Contractual) | Varies | Collective Agreements often mandate higher rates, such as 50% for evening work and 100% for work on Sundays and public holidays. |
| Time Off in Lieu (TOIL) | Time off granted must be equal to the hours worked (1:1). | N/A | The employee and employer may agree that the overtime hours are taken as paid time off, but the 40% minimum supplement must still be paid in cash. |
Overtime Limits (Statutory & Collective Agreement)
The law sets clear tiers for maximum overtime allowed before further authorization is needed.
| Period | Maximum Overtime Employer Can Impose (WEA) | Maximum Overtime Agreed with CA Representatives |
| 7-Day Period | 10 hours | 20 hours |
| 4 Consecutive Weeks | 25 hours | 50 hours |
| 52-Week Period (Annual Cap) | 200 hours | 300 hours |
-
Note: The Norwegian Labour Inspection Authority (Arbeidstilsynet) may grant further expanded overtime upon special application in exceptional cases.
Leave
Annual Leave (vacation)
In Norway, employees receive a paid annual leave entitlement of 21 working days per year; most CBAs and many companies offer 25 working days to employees.
For employees over 60, the entitlement increases to 31 days per year. Three weeks of continuous leave can be taken by any employee between 1st June and 30th September, though the employer and employee must agree upon the leave.
Annual leave is compensated at a minimum rate of 10.20% of the employee’s total salary, commonly paid in June. Some collective bargaining agreements will state an increased rate of vacation payment at 12.00%, and employees over the age of 60 are compensated at 12.50% of their total salary.
Leave entitlement is not accrued monthly. An employee that starts on any date before Sept 1 will always be entitled to all contractual days (5 days if the start date is after Sept 1).
PTO carryover
In Norway, unused leave must be carried over if it wasn’t taken due to sickness, parental leave, or the employer’s failure to allow it, and it may also be carried over by agreement.
Note:
- For People 2.0, 5 days can be carried over every year with no deadline to be used.
Public Holidays
Public holidays that fall on the weekend are usually lost.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 2 April 2026 | Thursday | Maundy Thursday | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 5 April 2026 | Sunday | Easter Sunday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 17 May 2026 | Sunday | Constitution Day | Standard holiday |
| 24 May 2026 | Sunday | Whit Sunday (Pentecost) | Standard holiday |
| 25 May 2026 | Monday | Whit Monday | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | St. Stephen’s Day / 2nd Day of Christmas | Standard holiday |
Sick Days
In Norway, employees will receive sick pay directly from the employer until day 16 of sickness at 100.00% of the employee’s salary. The maximum sick leave entitlement is 52 weeks of leave; From the 17th day – 52nd week, sick leave is compensated by a Social Security sickness benefit capped at six times the National Insurance base amount The limit of the sickness benefit is 744,168 NOK.
To be eligible for the Social Security benefit, an employee must meet a specific criterion, including being a member of the National Insurance Scheme, working for four consecutive weeks, and have a minimum income of 49,929 NOK annually.
Within three days of sickness, an employee must provide a completed written sick leave form and if the sick leave exceeds three days, a doctor’s note is required.
Maternity Leave ( Mom’s Qu0ta)
The mother must commence her parental benefits 3 weeks before the due date. This includes the mother’s right to take up to 12 weeks of leave during pregnancy, as well as 6 weeks of mandatory leave exclusively for the mother following the birth.
Parental Leave
The Parental leave may be split between the mother and father.
In Norway, you have the option of choosing between:
- 49 weeks of parental leave with 100% salary coverage
- 61 weeks + 1 day of parental leave with 80% salary coverage
These weeks ( Parental leave) includes both the “mum quota” and “dad quota,” as well as the flexible weeks that can be shared between both parents.
The national insurance will pay the parent 80.00% of the regular income for 61 weeks of leave and 1 day (Up to the national insurance limit ). If the employee opts to take a reduced leave of 49 weeks, they will be compensated at 100.00% of their income. Equalizing the total payout for both options.
Paternity Leave
Fathers receive two weeks of unpaid paternity leave.
Other Leave
In Norway, employers must take out occupational injury insurance for their employees.
If an employee is injured in the workplace, they are entitled to compensation up to 72,662 NOK per year. If the employee is unable to work, they will be entitled to disability compensation. The rate of compensation depends on the employee’s incapacity to work.
To be compensated, an employee must report the workplace injury to the Norwegian Labour and Welfare Administration (NAV), proving that the accident happened in the workplace.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
The termination process varies according to the Employment Agreement or Collective Agreements that are in place and is based on the type of contract and reason for termination. An employer is not required to issue a warning before an employee is dismissed and there is no at-will employment in Norway. As such, an employer must have a solid cause for terminating an employee and must prove the ground for termination.
All employers must adhere to strict requirements outlined in the Working Environment Act. An employer must conduct a consultation with the employee to discuss the potential dismissal before the termination.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| The payment interval is specified in the employment contract, but it’s common practice to pay once a month. | There is no universal statute that sets a fixed “within X days” after termination for final payment of all wages. Earned remuneration must be settled when employment ends. | Legal guidance states that wages shall be paid from the employer to the employee’s bank account via a bank or payment service, unless payment in cash is impossible or extremely difficult. |
Notice Period
If an employee wishes to terminate their employment, they must provide one month’s notice and submit their resignation in writing.
If an employer wishes to terminate an employee, the notice period is dependent on the age and seniority of the employee, as follows:
- If an employee has served fewer than five years, one month’s notice is required. A shorter period of notice than one month is only permitted if agreed in writing or laid down in a collective pay agreement.
- If an employee has served over five years of employment, two months’ notice is required.
- Over ten years of employment, three months’ notice is required.
- Over the age of 50, 4 months’ notice is required.
- Over the age of 55, 5 months’ notice is required.
- Over the age of 60, 6 months’ notice is required.
If an employee is in their probation period, either the employee or employer can terminate the employment with a 14-day notice period.
The notice period begins on the first day of the month following when the notice was given.
Severance Pay
No statutory right to severance pay. However, employers often offer severance pay so the employee accepts notice.
Probation Period
The probation period is optional and it is common to use six months.
Common Benefits
- Meal Allowance: between 450 – 1000 NOK per month (taxable)
- Gym/Wellness allowance: between 150 – 600 NOK per month (taxable)
- Transport/Commuting Allowance: approx. 1000 NOK
- Private health allowance: between 300-500 NOK per month, highly variable as it is entirely dependent on the worker’s personal situation
- Private pension: the common employer contribution would be 5-10%
- Additional leave: common to give 4 additional days off (total of 25 working days)
- Cell phone allowance: between 300 – 800 NOK per month
Immigration
If you are a citizen of a country outside the EU/EEA, you should contact the Norwegian Directorate of Immigration (Utlendingsdirektoratet, UDI) to determine what regulations apply to you. Norway’s immigration system provides several options for employers of foreign nationals.
Business visitors to Norway typically use a local version of the Schengen C Visa, unless they are visa-exempt based on their nationality. The Schengen Area limits stay for visitors to 90 days in 180 days.
The main work authorization categories are the Residence and Work Permit for Service Providers, suitable for highly skilled staff on temporary assignment to a Norwegian subsidiary or client, available in two-year increments up to a total stay of six years and the Residence and Work Permit for Skilled Workers, suitable for the highly skilled staff locally hired by a
Norwegian company, available in three-year increments with no limit on total stay.
A residence permit in a Nordic country does not automatically entitle you to live in another Nordic country. You must check with the relevant immigration authority whether you can move to that country; a double-entry visa may be required.
VAT
General
VAT is 25% standard rate.
Stay up to date on payroll & employment law changes
Version History
Income Tax Rates: for Income between NOK 260,100 – 651,250 rate changed to 4.0% in additional taxes.
Questions & Answers
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Payroll and Benefits Guide
in Norway
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 2 April 2026 | Thursday | Maundy Thursday | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 5 April 2026 | Sunday | Easter Sunday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 17 May 2026 | Sunday | Constitution Day | Standard holiday |
| 24 May 2026 | Sunday | Whit Sunday (Pentecost) | Standard holiday |
| 25 May 2026 | Monday | Whit Monday | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | St. Stephen’s Day / 2nd Day of Christmas | Standard holiday |
Hi, are employees allowed to carry over unused vacation days?
Hi Perry, employees can carry over up to 10 unused vacation days that must be taken early in the following year.
Hi, do you know the interest rate for late payment for social security contributions?
Hi,
We recommend reaching out to the official website of the Norwegian Tax Administration ( Deadlines and payment – The Norwegian Tax Administration (skatteetaten.no) for information on deadlines and payment.
The interest rates and specific penalties may vary depending on factors such as the duration of the delay and the outstanding amount of contributions. In general, late payment penalties can be either a fixed daily amount or a percentage of the unpaid contributions.
Hi, the income exempt for social security (64.650 NOK) is that amount exempt on a yearly or a monthly basis?