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Dive deeper into Norway
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Global Payroll Team
Written by Global Payroll Team
Last updated May 7, 2026
Expert Reviewed
Payroll in Norway
EOR in Norway
PEO in Norway

Norway map

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Mercans offers complete payroll, PEO and HR services in Norway

Norway offers a high standard of living, a stable business environment, and strong institutions. It is known for its highly skilled workforce, advanced infrastructure, and internationally competitive industries, making it an attractive market for companies looking to expand in the Nordics.

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Doing Business in Norway

Norway has an abundance of renewable energy and world-class industries within the oil and gas, maritime and seafood sectors. New green industries are also being developed, including floating wind, zero-emission shipping and carbon capture. Although not a member of the EU, Norway is integrated into the European single market through the EEA framework and remains an attractive destination for international employers and investors.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Norway is generally straightforward. Businesses can choose from a range of entity types depending on their operational and commercial needs.

Banking

Banks are generally open from Monday to Friday during normal business hours, although digital banking services are widely used across Norway.

Working Week

The standard working week is commonly 37.5 hours, usually based on a 7.5 hour workday.

Labor Law

Employers must comply with Norwegian employment law, including rules on non-discrimination, working environment, written employment contracts, and termination. The general rule is that employees must be employed on a permanent basis, although temporary appointments may be permitted in limited circumstances.

Main Industries

Energy, maritime, seafood, manufacturing, technology, chemicals and mining

GDP Growth

1.6%

Dates & Numbers

dd/mm/yyyy

Official State Name

The Kingdom of Norway

Population

5.6 million

Capital

Oslo

Major Languages

Norwegian

Currency

Norwegian krone (NOK)

Internet Domain

.no

International Dialing Code

+47

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Norway
Oslo, NO
3:42 pm, May 19, 2026
18°C
overcast clouds
47 %
Wind Gust: 4 mph
Clouds: 92%
Sunrise: 4:31 am
Sunset: 9:55 pm

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Payroll in Norway

Mercans payroll in Norway provides a fully managed payroll service to process employees’ salaries and related financial transactions in compliance with Norwegian labour laws and regulations, ensuring accuracy, timeliness, and confidentiality.

In Norway and the Nordic region, payroll and HR administration can be demanding due to statutory reporting requirements and ongoing legislative changes. Working with a local team of experienced specialists can help reduce the administrative burden, save time and resources, and lower the risk of non-compliance.

With our experience, expertise, and smart payroll technology, our Norway payroll team supports employers with reliable payroll outsourcing services, including support for collective bargaining agreements, holiday pay, tax deductions, pension obligations, and statutory reporting.

As an established payroll provider, our payroll services remove the hassle of managing complex and time-consuming payroll procedures, such as monthly reporting, payroll tax withholding, and pension administration, leaving your team free to concentrate on core business activities. For any concerns that you may have regarding payroll in Norway, our dedicated payroll specialists are available to handle all of your payroll queries and requirements in real time.

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Payroll

Employers must deduct tax from salary paid to employees and report payroll information to the authorities through the required monthly reporting process. Employers must also ensure that eligible employees are covered by a mandatory occupational pension scheme. The minimum employer pension contribution is 2% of salary. Holiday pay on salary and other remuneration must also be calculated and accrued by employers.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must generally be kept for 5 years, with some accounting records kept longer

Reports

4 weeks and 1 day of paid holiday each calendar year

Annual Leave

Sickness benefit may be paid for up to 1 year. The first 16 calendar days are generally paid by the employer.

Sick Leave

Parents are entitled to extensive parental leave, with benefit periods varying depending on the chosen coverage level

Maternity & Paternity Leave

Performance based bonus at the employer’s discretion

13th month salary

Minimum of 40% of the agreed hourly pay

Overtime

There is no statutory right to severance pay in Norway

Severance Pay

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Employer of Record (EOR) in Norway

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Mercans Employer of Record (EOR) services in Norway provide a compliant employment solution for foreign companies to hire employees in Norway, handling HR, payroll, tax compliance, and other administrative tasks, while ensuring legal compliance with Norwegian employment laws and regulations. If your main concern is speed or local expertise when expanding into or hiring employees in Norway, our employer of record services can help support your global expansion goals.

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With our EOR in Norway, sometimes called an international PEO, you can hire and onboard workers quickly without incurring the costs and risks of setting up a local company. By using our Global Employer of Record solutions, you can hire your team directly through our local legal entities in each country while we handle payroll, tax, benefits, and compliance so you can focus on what really matters.

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Our platform has been designed to work as a unified employment platform with automated workflows, digital signatures, payroll, contractor payouts, and all types of compliance solutions that you might require to maintain compliance within your organization.

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Discover what the requirements are for hiring, employing, paying, and providing benefits to workers in Norway, as well as how we can assist you as an EOR provider in Norway by offering international employment services, Professional employer organization (PEO) services, and local HR support.

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PEO in Norway

Mercans Professional Employer Organization services in Norway offer a comprehensive HR outsourcing solution to help foreign companies establish a local presence, compliantly hire and manage employees, handle HR, payroll, benefits, tax compliance, and other administrative tasks, while reducing costs and administrative burden. Mercans’ PEO in Norway provides companies looking to outsource their HR and payroll processes with a reliable and efficient service.

As a Professional Employer Organization, Mercans offers a range of services including employee benefits, payroll administration, and compliance with Norwegian labour laws. This allows companies to streamline their HR operations and focus on their core business activities while relying on Mercans to handle the HR and payroll responsibilities.

Partnering with our PEO in Norway presents the fastest and most efficient way to establish your presence in the Norwegian market.

Contact us to explore how our PEO Norway solutions can support your business expansion with full compliance and local expertise!

Benefits of Hiring an employee through a Norway PEO

Norway offers a stable, high-income economy with a strong social model and a tech-savvy workforce. However, entering the market comes with strict labour laws and high employer obligations. Partnering with a PEO in Norway helps you hire confidently while remaining fully compliant. Here’s how:

Quick Access to a Well-Regulated Market

Norway’s business environment is transparent and well-regulated, but establishing a local entity can be time-consuming. A PEO Norway solution allows you to hire and operate within days without opening a local branch.

Compliance with Norway’s Rigorous Labor Standards

From mandatory pension contributions to paid parental leave and collective labour agreements, Norwegian employment law is highly protective of workers. A local PEO helps ensure your practices align with national requirements.

Simplified Payroll and Tax Administration

Payroll in Norway includes components such as holiday pay accrual, employer social contributions, and monthly reporting obligations. A PEO can help manage these requirements accurately and on time.

Employer Branding Aligned with Local Values

Norwegians value trust, transparency, and sustainability in the workplace. A Norway PEO helps you present a locally credible employer brand that resonates with candidates and supports long-term retention.

Access to Top Talent in High-Skill Sectors

Whether you’re hiring in energy, maritime, software, or biotech, Norway offers a highly educated workforce. A PEO streamlines the hiring process so you can access this talent pool quickly and compliantly.

No Need to Manage Local Registrations

Avoid navigating complex registrations with entities like the Brønnøysund Register Centre or Altinn. A PEO in Norway manages the administrative and legal setup for you.

Scalable Hiring Across the Nordics

Using a PEO gives you the flexibility to start small in Norway and expand into neighbouring Nordic markets using a similar model while keeping your growth efficient and controlled.

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Tax and Social Security

Norway’s tax and social security system includes corporate income tax, employee tax withholding, VAT, and contributions to the National Insurance Scheme. Employers must also consider mandatory pension obligations and monthly payroll reporting requirements.

Tax

The main taxes for employers include payroll withholding obligations, employer National Insurance contributions, and corporate income tax. Employer National Insurance contribution rates vary depending on the geographical zone and can range from 0% to 14.1%. Foreign workers may need a D number if they do not have a Norwegian national identity number and need identification for communication with Norwegian authorities and tax registration.

Norway also offers an R&D incentive scheme called SkatteFUNN, which can provide tax relief for qualifying research and development costs.

22%

Corporate Income Tax

47.4%

Personal Income Tax

25%

Sales Tax

25%

VAT

Social Security

The primary general social insurance schemes in Norway are administered through the National Insurance Scheme. Employers and employees both contribute, and employer contribution rates vary by location.

≤ 14.1%

Social Security Rate for Employers

7.7%

Social Security Rate for Employees

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Employment Law

Employers have several key obligations towards their employees under the Working Environment Act, the National Insurance Act and the Annual Holidays Act. Temporary lay-offs may also be used in some situations, subject to applicable legal requirements.

Employment agreement

All employees must have written employment contracts and this requirement applies to permanent positions, temporary appointments as well as casual workers. The Norwegian Labour Inspection Authority provides guidance on the minimum requirements for employment contracts.

Working condition

All employees must be provided with a safe and appropriate working environment that meets the requirements of the Working Environment Act. Employers must work systematically with health, safety and environment procedures.

Leaves

In certain cases, employees have a statutory right to leave. Whether leave is paid or unpaid depends on the type of leave and the legal basis for it. Statutory leave entitlements include holiday leave, sick leave, parental leave, leave to care for sick children, and other protected leave types.

Employment termination

Employees may be dismissed only where there are objective grounds, and the Working Environment Act sets out rules on procedure, consultation, and notice. Employees may also have their employment terminated when they reach the statutory age limits that apply under Norwegian law.

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1 month

Minimum notice period for terminating an employee, unless otherwise agreed in writing or under a collective agreement

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12

Total number of public holidays

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37.5

Working hours per week

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Varies

Total number of days for Compassionate & Bereavement Leave

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Immigration

If employers wish to employ foreign workers, they must first check their eligibility to work in Norway. Foreign nationals wishing to work in Norway must generally have a residence permit, although the rules vary depending on nationality and immigration status.

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Residency permits

Different rules apply depending on whether the worker is from the EU/EEA or from outside the EU/EEA. Workers from outside the EU/EEA generally need a residence permit for work. For skilled workers, permits can typically be granted for up to two years at a time, subject to the underlying employment conditions and immigration requirements.

Work Permit validity

Up to 2 years at a time for many skilled worker permits

Required Documents

Valid passport

Completed application forms and supporting identity documents

Documented job offer or employment contract meeting Norwegian requirements

Evidence of qualifications where required

Any additional supporting documents requested by the immigration authorities for the relevant permit type

Compliant, reliable, error-free and touchless payroll in Norway

Build the best team and hire top talent compliantly in Norway. Get in touch with Norway payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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    FAQs

    What is an Employer of Record (EOR) in Norway and how does it work for foreign companies?

    An Employer of Record in Norway, provided by Mercans, serves as the legal employer for your workforce in the country. Mercans manages employment contracts, payroll, taxes, social security, and full compliance with Norwegian labour regulations, allowing your company to hire employees in Norway without creating a local legal entity.

    Why should businesses use an EOR instead of establishing a legal entity in Norway?

    Using Mercans as your EOR in Norway removes the need to register a company locally, saving both time and cost. It enables fast market entry, ensures compliance with Norwegian employment and tax laws, and allows your business to focus on operations while Mercans handles HR, payroll, and legal obligations.

    How does payroll outsourcing in Norway ensure compliance with tax and labour regulations?

    Mercans’ payroll outsourcing services in Norway ensure accurate salary payments, tax withholdings, pension contributions, and statutory filings in accordance with Norwegian law. By keeping all payroll processes up to date with current regulations, Mercans helps prevent compliance risks and administrative errors.

    Can an Employer of Record in Norway hire employees and manage work permits for international companies?

    Yes. Mercans can hire employees on behalf of international companies and manage visa and work permit requirements for foreign nationals. This enables global businesses to engage both local and expatriate talent in Norway with full compliance and operational efficiency.

    What are the main benefits of using EOR and payroll services in Norway for global expansion?

    Partnering with Mercans provides fast access to the Norwegian talent pool, full compliance with labour and tax laws, reduced operational risks, and complete HR and payroll management. Businesses can expand globally with flexibility, scalability, and peace of mind while Mercans ensures every employment process meets Norwegian legal standards.

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