Social security - 14.1% (can be lower for some sparsely populated areas)
Supplementary pension - 2% - 25.1%
Social security: 8%
Income tax: 22% + the following progressive supplements
|GROSS INCOME||ADDITIONAL PROGRESSIVE TAX|
NOK 0 – 190,349
NOK 190,350 – 267,899
NOK 267,900 – 643,799
NOK 643,800 – 969,199
NOK 969 200 – 1 999 999
over NOK 2,000,000
Paid leave annually: 21- 25 working days.
Paid paternity leave: 2 weeks
Paid sick leave: 52 weeks, requires a medical certificate
Parental leave: 12 months paid + 12 months unpaid
Paid maternity leave: 12 month and 15 weeks
HQ country employment & payroll
Independent contractor agreements
Direct local employer setup
Employment through a local entity established for the purposes of employment/professional employer organization
Cons: The ongoing costs may be higher than direct employment. Some education is needed to inform employees about how the employment relationship will work. The setup comes with certain limitations.
As with every other country, certain costs are associated with employing a worker in Norway that come on top of the gross salary you are offering. A Norwegian employer must make social security and supplementary pension contributions based on each employee’s total taxable remuneration monthly. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
Boundless as the Employer of Record Sweden that has established an entity specifically for the purposes of employing on behalf of customers, files all pertinent taxes and contributions as they relate to the compliant employment of an individual in Norway.
Any new employee locally employed through an Employer of Record that has set up a company specifically to employ on behalf of customers gets full employment rights and benefits as specified in Norwegian employment law. They get a locally compliant employment contract, statutory maternity leave, holiday pay, parental benefits, relevant tax credit, etc.
In Norway, both employers and employees have to pay taxes. Norway employers make social security contributions and pension contributions. Employees contribute to social security and pay income tax. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.