There is no general minimum wage in Norway. There are specific minimum wages introduced in certain industries.
Individual Income Tax
The individual income tax rate is 22%. Income tax is calculated using a flat tax rate.
Payroll Cost
The employer cost is generally estimated at 18% of the employee salary.
Public Pension Fund - 4% Employer Social Security (ER SS) - 14.1%
Please note: The maximum salary for the Public Pension Fund contribution is NOK 1,423,440 for 2023. This cap is equivalent to 12 times the G-amount (Grunnbeløp) and is set yearly by the Norwegian government.
Employer Social Security (ER SS) is calculated on the sum of the employee's pension plan and total monthly remuneration, including salary, bonuses, commissions, allowances, etc.
Conditional Costs: Additional Social Security - 5% of the sum of the employee's pension plan and total monthly remuneration, including salary, bonuses, commissions, allowances, etc.
The additional social security contribution is applicable only for employees with annual salaries higher than NOK 750,000, and only after the employee's salary has reached this amount. In 2024, this limit will increase to NOK 850,000.
Annual Costs:
Vacation bonus
Employees aged up to 59: 12% of the annual total compensation, including salary, bonuses, commissions, allowances, etc.
Employees aged 60 or older: 14.3% f of the annual total compensation, including salary, bonuses, commissions, allowances, etc.
Employer Social Security (ER SS) on Vacation bonus: 14.1% of the vacation bonus
Overtime Pay & Maximum Hours
Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 10 hours of overtime per week, and 25 hours every 4 weeks. For additional hours, employees are paid:
140% of salary per hour of overtime during weekdays
200% of salary per hour of overtime during night shifts and weekends
Standard working hours are 7.5 hours per day, 37.5 hours per week. The standard workweek is from Monday to Friday.