Key Takeaways for Hiring in Norway
- There is no national minimum wage, with compensation levels generally set through collective bargaining agreements.
- Employees are entitled to 25 working days of paid annual leave, along with statutory holiday pay of at least 10.2% of the previous year’s earnings.
- Parental leave is generous and flexible, offering 49 weeks at full pay or 59 weeks at reduced pay, funded through social security.
- Termination without cause is not permitted under Norwegian law; employers must always demonstrate a valid, objective reason.
Continent
Europe
Capital
Oslo
Currency
Norwegian Krone (NOK)
Language
Norwegian
Payroll Cycle
Monthly
Pay Date
25th of the month
VAT
25%
Norway Employment Contract Overview
Below is the core structure we use when preparing compliant employment contracts for hires in Norway, aligned with local labour law requirements and standard market practice.
After probation:
- Less than 5 years: 1 month
- 5–10 years: 2 months
- 10–15 years: 3 months
- More than 15 years: 4 months
What Do You Need To Include In A Norway Employment Contract?
To stay compliant with Norway labour law, employment contracts must clearly set out the core terms of the working relationship from day one. At a minimum, contracts must include:
Employee Information
- Identification of both parties
- Workplace location
- Job title or description of duties
- Employment start date
- Anticipated duration if the position is temporary
- Terms regarding any probationary period
- Employee’s entitlement to vacation, vacation pay, and rules for scheduling leave
- Required notice periods
- Salary details and payment method
- Daily and weekly working hours
- Break duration
- Any agreements concerning special working-hour arrangements, if relevant
- Information on applicable collective agreements, where relevant
Payroll
Average employer cost
14.10%
| Category | Details |
|---|---|
| 13th Salary | Not mandatory; subject to employer discretion |
| Avg employer tax | 14.10% |
Tax Breakdown
Personal Income Tax (PIT)
| Category | Rate / Details |
|---|---|
| General Income Tax Rate | 22% |
Bracket Tax Rates (2025)
| Category | Rate / Details |
|---|---|
| Income between NOK 217,400 and NOK 306,050 | 1.7% |
| Income between NOK 306,051 and NOK 697,150 | 4.0% |
| Income between NOK 697,151 and NOK 942,400 | 13.7% |
| Income between NOK 942,401 and NOK 1,350,000 | 16.7% |
| Income exceeding NOK 1,410,750 | 17.7% |
Corporate Income Tax (CIT)
| Category | Rate / Details |
|---|---|
| Standard Rate | 22% |
| Financial Sector Companies | 25% |
National Insurance Contributions (NIC)
| Category | Rate / Details |
|---|---|
| Employee Contribution | 7.7% |
| Employer Contribution | 14.1% |
VAT
| Category | Rate / Details |
|---|---|
| VAT | 25% |
Mandatory Employee Benefits in Norway
| Benefits | Provider | Funded Through | Notes |
|---|---|---|---|
| Health Insurance | Government |
General Taxation and Payroll Contributions |
Norway has a universal public healthcare covering doctor visits, hospital care, maternity, mental health, and prescribed medications (with copayments). |
| Pension/Social Security | Government |
Payroll Contributions |
Retirement at age 67 after 40 years of contributions. Employers must also offer a supplementary pension plan (2% of gross earnings). |
| Other Statutory Benefits | Employer |
Additional Cost |
Vacation Pay: During annual leave, employees receive a special payment equal to 10.2% of their previous year’s earnings. The holiday pay must be disbursed immediately before the vacation begins. | |
Leave And Holiday Entitlement In Norway
Annual Leave
Under the Holidays Act, employees are entitled to 25 working days of paid annual vacation.
During annual leave, employees receive holiday pay equal to 10.2% of their previous year’s earnings, which must be paid immediately before the vacation begins.
Employees do not have full discretion over vacation dates. The employer determines the timing but must first consult with the employee or their representative.
Employees are entitled to take three consecutive weeks of vacation between June 1 and September 30, with the remaining days taken as a single block.
In principle, all vacations must be used within the same calendar year. However, written agreements may allow up to 12 unused days to be carried over to the following year.
Public Holidays
Employees are entitled to 10 paid public holidays, including:
-
January 1 – New Year’s Day
-
Maundy Thursday – Thursday before Easter
-
Good Friday – Friday before Easter
-
Easter Monday
-
May 1 – Labor Day
-
May 17 – Constitution Day
-
Ascension Day – Sixth Thursday after Easter
-
Whit Monday – Monday after Pentecost
-
December 25 – Christmas Day
-
December 26 – Boxing Day
Sick Leave
According to the National Insurance Act, employees who have worked for at least 4 weeks before the start of sick leave are entitled to up to 52 weeks of paid sick leave.
Employees qualify for sick pay from the first day of absence, provided the illness is verified by a medical certificate.
The employer pays sick pay for the first 16 days, after which the National Insurance Scheme (Folketrygden) assumes responsibility.
The scheme provides full pay, up to a maximum of six times the National Insurance base amount. Employers may agree, through collective agreements or contracts, to top up the benefit to match the employee’s full salary.
Maternity Leave
Norway offers 49 weeks of paid leave at full pay or 59 weeks at 80% pay.
Employees who earn at least 50% of the National Insurance base amount and have worked at least 6 months within the previous 10 months qualify for paid maternity leave.
Of the total leave period, 10 weeks are reserved for the father and are forfeited if not used. The remaining weeks may be shared between both parents.
Mothers must take at least 3 weeks (and up to 12 weeks) before the expected delivery date and 6 weeks immediately after childbirth. Some portions may be deferred, but all leave must be used within 3 years. Payments are made through the social security system.
For adoptive parents, parental benefits begin once they assume responsibility for the child. Adoptive parents receive 46 weeks at full pay or 56 weeks at 80% pay.
Paternity Leave
New fathers are entitled to up to two weeks of unpaid leave.
Other Types of Leave
-
Parental Leave:
Employees meeting income and service thresholds may take 49 weeks at full pay or 59 weeks at 80% pay, with 10 weeks reserved for fathers. Leave may be deferred but must be used within 3 years and is funded by social security.
-
Religious Leave:
Employees not belonging to the Church of Norway may take up to 2 unpaid days per year for religious observance, with at least 14 days’ notice.
-
Educational Leave:
Employees with 3 years of work experience, including 2 years with the current employer, may take leave for organized vocational training if it does not disrupt operations.
-
Leave to Care for Dying Relatives:
Employees may take up to 20 days to care for a terminally ill close relative at home.
-
Leave for Official Duties:
Employees are entitled to time off to fulfill legal obligations related to public bodies.
-
Military Leave:
Employees may take leave for military service and must notify the employer if they intend to return. Reinstatement is not required until one month after notification of availability.
Termination and Offboarding in Norway
Termination and offboarding in Norway are strictly regulated under the Working Environment Act, with clear rules around notice, documentation, final pay, and employee protections.
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | No. Norwegian law requires that there be a valid reason for terminating employment. |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Norway Employee Resignation
Notice
Form
In writing.
Notice period
Employees wishing to end their employment are required to give one month’s notice.
Payment in lieu of notice or notice waiver:
Payment in lieu of notice (PILON) is not a statutory right in Norway but may be agreed contractually or by mutual agreement. Employers and employees may also waive the notice period by mutual consent.
End-of-Service Benefits
Severance/Gratuity
There is no statutory severance pay or gratuity requirement for resignations initiated by the employee. If a collective agreement or individual employment contract includes severance provisions, those terms apply.
Other Benefits
-
Final salary, including accrued but unused holiday pay, must be paid at the end of the employment relationship.
-
Employees are entitled to compensation for earned but unused vacation days, normally paid as holiday pay of at least 10.2% of the previous year’s earnings (or 12% if the employee is entitled to five weeks of holiday).
Termination Documentation
-
Employers must provide written confirmation of the resignation or termination, including the last working day and settlement details if requested.
-
While not legally required, it is standard practice to issue a reference letter or certificate of employment upon request.
Employer Termination With Cause in Norway
Termination with cause must be objectively justified, documented, and proportionate to the circumstances.
Acceptable grounds
-
Serious breach of contract or misconduct (e.g., theft, violence, gross negligence).
-
Lack of qualifications or ability to perform essential job duties despite reasonable improvement efforts.
-
Repeated breaches of company policies after prior warnings.
-
Other serious circumstances making continuation of the employment relationship impossible.
Notice
Form
Written notice clearly stating the reasons for dismissal.
Notice period
Statutory notice periods apply unless the dismissal involves gross misconduct, which may justify immediate termination.
Payment in lieu of notice or notice waiver
Notice may be shortened or waived by mutual agreement. PILON is permitted if agreed but is not mandatory
End-of-Service Benefits
Severance
There is no statutory severance entitlement for dismissal with cause. Severance may apply only if agreed contractually or through a collective agreement.
Other Benefits
-
Salary and benefits are payable up to the final working day, including accrued holiday pay.
-
Any outstanding expenses or bonuses must be settled.
Termination Documentation
-
A written termination letter detailing the grounds for dismissal must be issued.
-
Employees may request a certificate of employment or reference letter, which is usually provided unless exceptional circumstances apply.
Employer Termination Without Cause in Norway
This termination type isn’t possible under the Employer of Record setup in Norway due to local labor law restrictions. For compliant termination options, see:
- Mutual Termination Agreements
- Employee Resignation
- Fixed-term Contract Expiry
If you need termination without cause, you’ll need to establish your own Norwegian entity.
Mutual Termination Agreements in Norway
A mutual termination agreement (also known as a settlement agreement or frivillig avslutning) allows both parties to end the employment relationship by mutual consent. While regulated under the Working Environment Act, these agreements are primarily governed by contract law principles and must be voluntary and clear.
Notice
Form
The agreement should be documented in writing and signed by both parties.
Notice period
The parties may agree on a notice period that differs from statutory or contractual requirements, including waiving it entirely.
Waiver of notice
Any waiver must be explicitly stated, and both parties should fully understand the implications, including potential loss of income.
End-of-Service Benefits
Severance
Severance is not mandatory unless specified in the employment contract or collective agreement. Any severance or gratuity must be clearly stated in the agreement.
Other Benefits
Unused holiday pay, bonuses, pension contributions, or other benefits should be clearly addressed in the agreement.
Termination Documentation
-
Written agreement: Must clearly outline notice terms, severance (if any), benefits, and obligations.
-
Final settlement: The agreement should confirm payment of all outstanding wages, unused holiday pay, and other entitlements before termination takes effect.
Offboarding Process for the End of Fixed-term Contracts in Norway
Termination and offboarding in Norway are strictly regulated under the Working Environment Act, with clear rules around notice, documentation, final pay, and employee protections.
Final Payment Timing & Immigration and Visa Compliance in Norway
Final Payment Deadline
In Norway, the Working Environment Act (Arbeidsmiljøloven) requires employers to settle all earned remuneration and compensation including unused holiday pay on the employee’s last day of employment when a fixed-term contract expires or employment is terminated.
Penalty
If final payments are not made on time, the employee has the right to claim a penalty for late payment under Norwegian law.
Visa and Immigration Compliance
- Employers are obligated to report the termination of employment to the UDI. This ensures that the employee’s immigration status is accurately updated in the UDI’s system.
- Employers should also provide the employee with all required termination documentation, such as a written termination letter, to help them meet immigration and compliance obligations.
Supporting Guides
Frequently Asked Questions
What are the notice and severance rules if I need to let someone go?
Notice scales with tenure: one month for under five years, two months for five to ten years, three months for ten to fifteen years, and four months for over fifteen years. Norwegian law does not permit termination without cause—employers must always demonstrate a valid, objective reason such as serious misconduct, lack of qualifications, or repeated policy breaches. Statutory severance is not required unless specified in a collective agreement or employment contract.
Do I need to set up a legal entity to hire in Norway?
Not if you use an Employer of Record like RemotePass. An EOR acts as the legal employer, handling payroll, compliance, and contracts while you manage day-to-day work.
Is there a minimum wage in Norway?
No national minimum wage exists (except in construction and cleaning industries). Wages are typically set through collective bargaining agreements.
How does holiday pay work in Norway?
Employees receive holiday pay equal to 10.2% of their previous year’s earnings, paid immediately before their vacation begins. This is in addition to the 25 working days of paid annual leave.
How generous is parental leave in Norway?
Parental leave offers 49 weeks at full pay or 59 weeks at 80% pay, funded through social security. Ten weeks are reserved for fathers and forfeited if not used, with the remaining weeks shared between parents. Mothers must take at least six weeks immediately after childbirth.
What happens to work permits when employment ends?
Employers must report the termination to the Norwegian Directorate of Immigration (UDI) to ensure the employee’s immigration status is accurately updated. Provide all required termination documentation to help employees meet immigration and compliance obligations.
