Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Norwegian Kroner
Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in


, particularly if you don't have established local relationships. You can hire employees in


effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Norway, formally the Kingdom of Norway, is a Nordic nation in Northern Europe, occupying the western and northernmost parts of the Scandinavian Peninsula on its mainland. The archipelago of Svalbard and the small Arctic island of Jan Mayen are both part of Norway. Bouvet Island is a Norwegian dependency in the Subantarctic, and it also claims the Antarctic territories of Peter I Island and Queen Maud Land. Norway covers 385,207 square kilometers and has a population of 5,385,300 people as of November 2020. Sweden shares a long eastern border with the nation. Norway is bordered to the north-east by Finland and Russia, and to the south by the Skagerrak strait, with Denmark on the other hand. Norway has a long coastline that runs parallel to the North Atlantic Ocean and the Barents Sea. Norway's climate is dominated by the maritime influence, with moderate lowland temperatures along the sea coasts, while the interior, while colder, is still much milder than regions elsewhere in the world at such northerly latitudes. Temperatures above freezing are normal on the coast, except during polar night in the north. Some areas of the country experience heavy rainfall and snowfall due to the maritime impact. The new King of Norway is Harald V of the House of Glücksburg. Since 2013, when she took over for Jens Stoltenberg, Erna Solberg has served as Prime Minister. Norway is a constitutional monarchy with a unitary sovereign state. The 1814 constitution divides state authority between the assembly, cabinet, and supreme court. The kingdom was established in 872 as a result of the merger of several petty kingdoms and has lasted for 1,149 years. Norway was a member of the Kingdom of Denmark–Norway from 1537 to 1814, and then a personal union with the Kingdom of Sweden from 1814 to 1905. Norway was neutral during World War I and remained so until April 1940, when it was invaded and occupied by Germany until the end of WWII. Norway is divided into two administrative and political levels: counties and municipalities. Through the Sámi Parliament and the Finnmark Act, the Sámi people have some self-determination and authority over traditional territories. Norway has strong relations with the European Union as well as the United States. Norway is a founding member of the United Nations, NATO, the European Free Trade Association, the Council of Europe, the Antarctic Treaty, and the Nordic Council; a member of the European Economic Area, the World Trade Organization, and the Organization for Economic Cooperation and Development; and a member of the Schengen Area. Furthermore, the Norwegian languages and Danish and Swedish are mutually intelligible. Norway adheres to the Nordic welfare model, which includes universal health coverage and a robust social security system, as well as democratic principles.

04. Public holidays

05. Types of leave

Paid time off

Employees in Norway are entitled to 25 unpaid workdays under the Holidays Act, though it is more customary for them to get 5 weeks. Employees receive holiday compensation instead of paid time off.Holiday pay is accrued the year before the vacation is taken. It is paid to the employee on the payday preceding to the vacation or, at the very least, one week before the vacation. Alternatively, it is conceivable and popular to pay out holiday pay once a year on a certain month. Employees who were not employed the previous year are allowed to take vacation time, but they are not eligible to holiday pay.In Norway, the employer is required to set away 10.20% of the employee's pay. If the employee is paid on a commission or bonus basis, the bonus or commission must be factored into the holiday pay calculation.The amount should be set away for employees over the age of 60 is 12.50 percent.

Public holidays

Norway recognizes ten public holidays.

Sick days

An employee is not obliged to present a doctor's certificate for the first three days of an illness. This is necessary after the fourth day.The employee must have worked for at least four weeks to be eligible for sick leave and benefits. The maximum benefit period is 52 weeks, beginning on the first day of the sickness and must be supported by a medical certificate.The employer is responsible for paying the employee's sick pay for the first 16 days of the sickness. The Norwegian National Insurance program takes over after 16 days.

Maternity leave

Mothers in Norway have the right to up to 54 weeks of maternity leave.If the mother decides to take all 54 weeks of maternity leave, national insurance is liable for paying her at a rate of 80% of her usual income, or 100% if she decides to take only 44 weeks of maternity leave.

Paternity leave

Paternity leave is enclosed in the parental leave provisions.

Parental leave

Maternity leave can be divided between the mother and the father, although the mother gets 3 weeks before the projected due date and 6 weeks following the delivery. After maternity leave, a parent can take an extra year of unpaid leave.

Other leave

Workplace injury leave: In Norway, employers are required to purchase occupational injury insurance for their employees.If an employee is wounded at work, they must report the incident to the Norwegian Labour and Welfare Administration (NAV) along with documentation that the accident occurred on the job.Due to a work-related injury, an employee is eligible to compensation of up to 72,662 NOK each year.Employees are entitled to disability pay if they are unable to work. This remuneration is based on the proportion of time the employee is able to work despite his or her disability.

06. Employment termination

Termination process

In Norway, employers are not obligated to offer a warning prior to dismissing an employee. However, the Working Environment Act contains stringent regulations that must be followed. In Norway, there is no such thing as at-will employment, and hence the employer must have a valid, just reason for terminating an employee, as well as the ability to substantiate the grounds for termination.

Prior to terminating an employee, the employer must communicate with the employee to discuss the termination possibility.

Notice period

Employees are required to give at least one month's notice before terminating their employment. If an employee is terminated and has worked for the company for more than five years, the employee will receive two months' notice. If the employee has worked for the company for more than ten years, the notice period will be at least three months. Employees who are over the age of 50 are entitled to a four-month notice period. If the employee is over the age of 55, a five-month notice period will apply. If the employee is over the age of 60, a six-month notice period will apply. The notice period commences on the first day of the month following the date of receipt of the notice.

Severance pay

There is no statutory severance pay in Norway.

Probation period

The probationary period in Norway usually lasts for 6 months.

07. Working hours


In Norway, the standard workweek is 40 hours spread over five days. Numerous employees are covered by collective bargaining agreements that limit their weekly work hours to 37.5 hours. Between the hours of 8 a.m. and 4 p.m. are the most common working hours. Many employees, however, work flexible hours and report to work earlier or later than 8 a.m.


Employees are legally permitted to work up to nine hours per day. Overtime is permitted only when a specific, urgent need exists and may be for a limited period of time. Overtime is permitted up to ten hours per week, 25 hours in four consecutive weeks, and 200 hours per year. An employee may not work more than 13 hours per day or more than 48 hours per week on average over eight weeks.

Employers and employees may agree in a collective bargaining agreement to allow up to 20 hours of overtime per week, 50 hours in four consecutive weeks, or 300 hours in a calendar year. Additionally, an employer may petition the government Labor Inspection Authority to permit employees to work longer periods of overtime if they agree.

Overtime is compensated at a rate of at least 140 percent of the employee's standard hourly rate.

08. Minimum wage


Norway has no minimum wage. However, in most industries, minimum salaries are determined through collective bargaining.

09. Employee benefits


All Norwegians have a right to free treatment in public hospitals. The patient bears the whole expense of treatment at a private clinic that does not have an agreement with the public health system. EU nationals have the same right to care as Norwegian citizens. Private health insurance is expanding, but it only covers approximately 5% of healthcare treatments, and the overwhelming majority of them are elective. The quality of treatment is good, but there may be lengthy wait periods, which can lead to people seeking out-of-pocket care in other nations.

Stock options are often granted to salaried workers in higher-level jobs, consultants, and those in management. In general, we suggest budgeting 20% of the gross pay for benefits in order to distribute the entire employer's cost including benefits in Norway.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in


to hire a team takes time, money, and effort. The labor law in


has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into


simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in


give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in


via our Employer of Record / PEO solution.

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