General Overview

Norway is a highly developed, export-oriented economy with a strong welfare system and high living standards. The country is known for its robust regulatory framework and collective bargaining traditions, which ensure clear protections for employees and fair conditions across various sectors.

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Employment Contracts

Written Contracts: Employers must provide a written employment contract to all employees—whether permanent or temporary—no later than one month after the employee begins work.‍

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Content: Contracts must clearly state terms and conditions, and any clauses contrary to legal provisions are invalid.

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Probation Period

Trial Period: An employment contract may include a probation period of up to 6 months.‍

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Notice: During this period, the notice period is 14 days (unless otherwise agreed through collective agreements).

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Working Hours

Normal Hours: Maximum normal working hours are 9 hours per 24 hours and 40 hours per week.‍

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Breaks: Employees must receive at least one break if they work more than 5 hours and 30 minutes in a day.

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Vacation Days

Holiday Entitlement: Employees are entitled to at least 25 working days of holiday leave per year (with Saturdays counted as working days).‍

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Holiday Pay:

• Holiday pay is earned during the previous holiday year and is generally 10.2% of wages, increasing to about 12% if the employee is entitled to five weeks of holiday.
• For employees over 60 who receive an extra week, holiday pay may be 12.5% or 14.3%, depending on the total holiday entitlement.

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Sick Leave

Coverage:

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• Employees must have been employed for at least 4 weeks to be eligible for sick leave.
• Sick pay starts on the first day of absence.

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Employer's Obligation:

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• The employer is responsible for paying sick pay for up to 16 calendar days (the employer's period).
• If an employee falls ill again within less than 16 calendar days of returning, it is treated as a continuation of the same period.‍

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‍Reimbursement: Employers can reclaim sick-pay payments from NAV for amounts not exceeding the set thresholds.

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Wages and Salary Payment

Payment Date: Salaries are typically paid on the 25th of each month.‍

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Minimum Wage: There is no statutory minimum wage; wages are generally determined via collective agreements and individual negotiations.

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Public Holidays

Norway recognizes the following national public holidays (additional regional holidays may also apply):

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• January 1: New Year’s Day
• April 14: Maundy Thursday
• Good Friday (movable)
• Easter Monday (movable)
• May 1: International Workers’ Day
• May 17: National Constitution Day
• May 26: Ascension Day
• June 6: Whit Monday
• December 24: Christmas Eve (early closing for shops)
• December 25: Christmas Day
• December 26: Boxing Day

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Employer Taxes

Social Security: Employers must contribute 31.42% of the total taxable remuneration (with no cap).

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Wage Tax on Pension Costs: Employers also pay a particular wage tax of 24.26% on pension costs relating to tax-qualified company pension plans.

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Employee Taxes

Income Tax:

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• For income between 0 and NOK 180,800, there is no bracket tax.
• For income between NOK 180,800 and NOK 254,500, a 1.9% tax applies.
• For income between NOK 254,500 and NOK 639,750, a 4.2% tax applies.
• For income between NOK 639,750 and NOK 999,550, a 13.2% tax applies.
• For income above NOK 999,550, a 16.2% tax applies.

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Social Security: Employees have social security deductions amounting to 8.2% of their salary.

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Notice Period

Standard Notice:

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• For permanent employees, the notice period starts at 1 month for employment less than 2 years.
• For employees with at least 5 consecutive years of service, the notice period is at least 2 months.
• For those with 10 or more years, notice is extended further: at least 4 months after reaching 50 years of age. At least 5 months after 55 years. At least 6 months after 60 years

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Termination and Severance Pay

Termination:

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• Termination procedures are complex and depend on the reason for dismissal.
• Employees receive salary and contractual benefits during the notice period.

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Severance Pay:

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• There is no statutory right to severance pay in Norway.
• Severance schemes in collective agreements are often based on fee-based insurance contributions made by employers.
• Additional compensation may be negotiated or awarded if the dismissal is deemed unjust by a court.