Norway Employer of Record

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Norway, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Norway ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Norway and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs. 

The Holidays Act covers vacation entitlement, while sick leave is covered by the National Insurance Act of 1997 and data protection by the Personal Data Act of 2000. Protections against discrimination are found in the Discrimination in Gender Neutrality Act of 2013, the Act Against Discrimination Based on Ethnicity of 2013, the Discrimination and Accessibility Act of 2013 and the Act Against Discrimination Based on Sexual Orientation.

Employment contracts must be in writing and entered into “as early as possible” but no later than one month following the commencement of employment. 

As you look to hire employees in Norway, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Normal working hours generally are limited to nine per day and 40 per week.

The employer and the employee may agree in writing that normal working hours be averaged over a period of up to 52 weeks, provided that working time does not exceed nine hours on any day and 48 hours in any week.

Special rules apply to shift workers, people who work underground, people who are required to work on Sundays or at night, and people younger than 18. 

Rest breaks are compulsory after five and a half hours of work and must be for at least 30 minutes. Employees are entitled to continuous off-duty time of at least 11 hours between shifts and 35 hours per week unless agreed otherwise in a collective agreement.

The maximum amount of overtime that employees are permitted to work is 10 hours per week, 25 hours in four weeks, or 200 hours per year, except as agreed to in a collective pay agreement, as authorized by the Labor Inspection Authority or with the agreement.

As you consider the appropriate salary to offer new employees, keep in mind:  

As your employer of record in Norway, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

There are no provisions in the labor code governing bonuses.

Probationary periods can last six months in Norway.

Under Norwegian law, there must be a cause for dismissal. The notice period for dismissal varies from 14 days during the trial period to six months, depending on the employee’s age and seniority.

Employees who wish to terminate their employment must provide one month’s notice.

There is no requirement in the Employment Act for termination pay other than that earned during the notice period and pay for unused annual leave. 

When negotiating terms of an employment contract with a candidate in Norway, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Workers earning at least 50% of the National Insurance base amount and who have worked at least six months in the previous 10 months are entitled to paid maternity leave; Norway provides 49 weeks of paid leave or 59 weeks of 80% pay. Parents may share the remaining 10 weeks of paternity leave (which is forfeited if not used).

The mother must take at least three weeks (but no more than 12 weeks) of leave before the expected birth date, and six weeks immediately after the child is born. She may postpone taking a portion of the leave, but all leave must be taken within three years. The leave is paid by the social security system.

At adoption, the parental benefit period starts when the parents assume care of the child. Therefore, the total benefit period for parental benefit for adoption is 46 weeks at 100% coverage and 56 weeks at 80% coverage.

Under the Holidays Act, employees are entitled to 25 working days paid annual leave. Employees aged 60 or older by September 1 are entitled to an additional six working days of paid leave. A new employee hired by September 30 is entitled to the full annual leave. An employee who starts work after September 30 gets six days.

During annual leave, employees are entitled to a special pay rate equal to 10.2% of the employee’s wages in the previous year. For employees 60 or older, annual leave pay increases by 70.3.

Annual leave pay must be paid out immediately before the holiday.

Employees are entitled to the following paid public holidays: 

Work on public holidays is not permitted unless necessitated by the nature of the employment.

Public holidays that fall on a weekend are not moved to a weekday.

Under the National Insurance Act, employees who have been employed for at least four weeks before sick leave begins are entitled to 52 weeks of paid sick leave. The employer is responsible for the sick pay for the first 16 days, and after this, the National Insurance scheme takes over.

National Insurance pays 100% of the employee’s earnings to a maximum of six times the National Insurance base amount.

Employers can establish in collective agreements or employment contracts that they will cover the difference between sick pay from the National Insurance and the employee’s full salary for the same or a shorter period.

Employees are entitled to sick pay from the first day of absence, but the cause of the sick leave must be documented by a medical certificate.

All employers are required to pay statutory social security contributions to the National Insurance scheme to help fund retirement pensions, disability pensions and other social benefits. The contributions are calculated based on gross pay and allowances.

In addition, employers that are taxed in Norway and have a minimum of one employee must provide a supplementary pension scheme for their workers. The pension can be either a defined contribution scheme or a defined benefit scheme. Under the defined contribution scheme, the employer pays an annual premium equal to about 2% of the employee’s gross income.

Employees may retire with a full pension at age 67 with at least 40 years of contributions to the insurance fund.

In addition to healthcare benefits, employees in Norway are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Norway, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed. 

Updated: January 05, 2024 

We write and validate all local employment contracts, streamlining the onboarding process for you and your Norway employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Norway, we will:   

The entire onboarding process for the employee is often completed in as little as two weeks. 

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Norway. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.