How to hire and pay employees in Norway
With Instahirin, your business can easily hire employees in Norway. No more worrying about local laws, complex tax systems, or managing international payroll.
Before hiring
EMPLOYEES IN The Norway
Before hiring employees in Norway, one key thing employers should be aware of is the country’s strict adherence to the EU General Data Protection Regulation (GDPR), as incorporated through national law. Employers must handle employee personal data with care, ensuring transparency, consent, and secure data transfers especially when transferring data outside of the European Economic Area (EEA).
Another important factor is understanding Norway’s labor laws and mandatory benefits, which strongly protect workers’ rights. Employers are required to contribute to social security (National Insurance Scheme), covering healthcare, pensions, parental benefits, unemployment benefits, and more. Employees are entitled to at least 25 working days of paid annual leave, plus paid sick leave, parental leave, and public holidays. Most working conditions are regulated by the Working Environment Act and may be supplemented by collective agreements, even in non-unionized workplaces.
At a glance
CURRENCY
Norwegian Krone (NOK)
OFFICIAL LANGUAGE
Norwegian & English
PAYROLL FREQUENCY
Monthly
EMPLOYER TAXES
14.1%
of gross salary
13th / 14th SALARY
N/A
Good to know
Norway offers universal public healthcare, funded primarily through taxes. All residents have access to comprehensive healthcare services, including hospital care and general practitioners. Employers do not pay separate health insurance contributions, but many offer private health insurance as a perk to reduce wait times for non-emergency care.
The standard workweek is 37.5 hours, typically 7.5 hours per day over 5 days. Overtime is allowed but strictly regulated and must be compensated at minimum 140% of the normal wage. Employees are entitled to 25 days of paid annual leave, with an additional week for those over 60, plus 10–12 public holidays, depending on the region.
Labor laws in Norway
Working hours and overtime
Norway’s WEA stipulates the normal working week is 40 hours, and the normal working day should not exceed nine hours. Many collective agreements, however, mandate that employees work no longer than 37.5 hours per week.
Employment contracts
Contracts must be in Norwegian or English and can be bilingual. They must be in writing and signed by both parties.
- Name of employee and employer
- Workplace
- Job description
- First day of employment
- Duration of employment
- Probation period
Probationary period
In Norway, probation periods typically last up to 6 months and must be stated in writing. During this time, either party can terminate the contract with 14 days' notice, but dismissal must still be justified.
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Benefits and leave in Norway
Annual leave in Norway
In Norway, employees are entitled to 25 working days of paid annual leave each year, not including weekends. Those over 60 receive an extra 6 days. Vacation pay (feriepenger) is usually 10.2% of the previous year's earnings, paid out in place of salary during time off.
Sick leave
Employees can take three consecutive days off work without presenting a medical certificate. After that time, employees must present a certificate for their absence.
Employees are entitled to 100% of their pensionable salary while on sick leave for up to 52 weeks. Employers must pay employee salaries for the first 16 calendar days. The National Insurance Scheme is responsible for paying employees afterward.
Parental leave
Each parent is entitled to a year of unpaid parental leave following the birth of their child. Parents taking care of a child alone are entitled to two years of unpaid leave.
Employees must apply for leave at least three months before the leave will begin.
Employees are entitled to 100% of their salaries when taking parental leave for 49 weeks and 80% of their salaries when taking leave for 59 weeks.
Holidays
Norway has 12 official public holidays each year, including fixed dates like New Year’s Day and Constitution Day, plus movable ones like Easter and Pentecost. Some widely observed days, such as Christmas Eve and New Year’s Eve, are not official holidays but often see early closures.
Employer tax
In Norway, employers typically contribute around 14% to 15.5% of an employee’s gross salary to mandatory social security schemes, including the National Insurance Scheme (covering pensions, unemployment, sickness, and accident insurance), with exact rates varying slightly depending on the region and industry.
Individual tax
In Norway, individuals pay progressive income tax rates ranging from about 22% to 38%, including national and municipal taxes, along with mandatory social security contributions of approximately 8% to 9%, with the total tax burden varying based on income level and municipality.
Termination in The Norway
Terminations in Norway can be complex. There is no at-will termination in Norway for employers outside the probation period, and termination must be done for just cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- By the expiration of the contract
- Termination during probation shall be based on the employee’s lack of suitability for the work or lack of proficiency or reliability
Notice period
The minimum notice period is one month but the notice period increases based on length of employment.
- Probation period - 14 days notice period
- Up to 5 years of employment - 2 months notice period
- Up to 10 years of employment - 3 months notice period
Start hiring employees in
Norway
Setting up a business entity in every country you want to hire from isn’t scalable it’s time-consuming, costly, and legally complex. In Norway, understanding labor laws, tax regulations, social security contributions, and pension obligations can be challenging. Managing contracts, payroll, and compliance manually through spreadsheets and emails often leads to inefficiencies and risks.
With InstaHirin, you can easily manage HR, payroll, and automate compliance in Norway and 180+ countries all from one user-friendly platform so you can hire quickly and confidently without setting up a local entity.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While InstaHirin yster strives to provide current and accurate information, InstaHirin makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
