Employment taxes in Norway

Overview

Norway enforces detailed regulations on employment taxes, social contributions, and employee protections. Employers and employees must comply with legal requirements covering employment contracts, social security, tax obligations, working hours, and leave.

This guide summarizes the core aspects of Norwegian employment laws and compliance duties.

Employer tax and social security contributions

Employers in Norway contribute to various social insurance schemes on behalf of their employees. These contributions fund benefits such as pensions, sickness pay, parental leave, and unemployment support.

• Social security contribution is required for all employees
• Employers must enroll workers in occupational injury insurance
• Pension contributions of at least 2% of each employee's salary up to 12 G (G = "Folketrygdens grunnbeløp", 1 G = NOK 118,010 as of 2025)

Employers often provide additional insurance such as group life or private health coverage, but these are not mandated by law beyond injury insurance.

Employee tax obligations

Employees are taxed on personal income including wages, pensions, and taxable benefits. Norway distinguishes between tax residents and non-resident workers, each with specific rules.

• Resident status applies if an individual is present over 183 days in a year or over 270 days within 36 months
• Tax residents are taxed on global income and wealth, with relief possible under tax treaties
• The general income tax rate is 22%; additional bracket tax and social security contributions apply
• Employers withhold income tax at source and remit it to the tax authorities

Special rules for foreign workers

Individuals not qualifying as Norwegian tax residents may opt for a simplified withholding tax scheme.

• Flat withholding tax rate of 25% on salary income
• No deductions apply
• No requirement to file a personal tax return under this scheme

Benefits-in-kind and deductions

Employment-related benefits such as company vehicles or housing are generally taxed at market value. Exceptions exist for certain business-related reimbursements.

• Travel expenses for business may be non-taxable in some cases
• Standard deduction of 46% of salary income for residents; deduction limited to NOK 31,800–109,950
• Deductions allowed for costs directly linked to earning income

Working hours and overtime

Statutory working limits are in place to protect work-life balance and prevent excessive hours.

• Normal maximum working hours are 9 hours per day and 40 hours per week
• Overtime permitted, but compensable by extra pay or time off
• Collective agreements may set lower standard hours

Leave entitlements

Employees in Norway are entitled to paid annual leave and statutory paid leave for illness, parenting, and public holidays.

• Minimum annual paid leave is 25 working days
• Paid maternity, paternity, and parental leave under social security schemes
• Sick pay at full salary for up to 52 weeks for qualifying employees

Employee rights and protections

Norwegian law sets strong protections for employee rights and workplace standards.

• Written employment contract required
• Protection against discrimination
• Rules for workplace safety and accident prevention
• Notice periods for termination specified by law or collective agreements

Termination and probation

Termination rules are outlined in the Working Environment Act. A notice period applies, based on length of service or contract terms.

• Minimum notice: typically one month, but varies
• Probationary period can last up to 6 months
• Fair dismissal procedures required

Visas and work permits

Foreign nationals generally need a valid residence permit to work in Norway. Specific requirements depend on nationality and the nature of the employment.

• EU/EEA citizens register with local authorities
• Non-EU nationals must apply for a work permit before arrival
• Sponsorship and documentation requirements apply

Employer obligations and compliance

Employers must fulfill several obligations regarding payroll, reporting, and employee welfare.

• Withholding and remitting income tax and social security contributions
• Maintaining accurate work and pay records
• Providing statutory insurance and pension coverage
• Ensuring a safe and discrimination-free workplace

FAQs

What income tax rate applies to employees in Norway?

The general income tax rate for employees in Norway is 22 percent. Employees may also be subject to additional bracket tax and social security contributions withheld by the employer at source.

Do employees in Norway receive paid annual leave?

Employees are entitled to a minimum of 25 working days of paid annual leave per year. Additional leave or benefits may be available under collective agreements or employer policies.

What contributions must employers make to employees' pensions?

Employers are required to contribute at least 2 percent of each employee's salary toward a supplementary occupational pension. This applies on earnings up to 12 times the basic amount (G) set by Norwegian authorities.

When does a foreign worker become a tax resident in Norway?

A person becomes a tax resident if they stay in Norway for more than 183 days in a single year or over 270 days within a 36 month period. Tax residents are taxed on their global income and wealth.

Are foreign workers required to file tax returns in Norway?

Foreign workers using the 25 percent withholding tax scheme do not file personal tax returns. Other non-residents and all tax residents generally must file annual tax returns with the tax authorities.