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Employer of Record and Payroll Services in Norway Norway flag

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Mercans-owned legal entity
We have our own legal entity to protect your business from risk and provide you and your employees with a distinctive experience.

Services available

  • Employer of record
  • Contractor management
  • Global payroll
  • In-country payroll

Mercans offers complete payroll, PEO and HR services in Norway

Norway has been repeatedly ranked “the best country to live in” by the United Nations Human Development Report, based on its levels of education and income and other key factors.

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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 being developed such as floating wind, zero-emission shipping and carbon capture. Although not a member of the EU, Norway is integrated in the European single market. Additionally, Norway ranks among the top ten countries in the world on the world happiness ranking, the world talent ranking, the world competitiveness ranking, the environmental performance index and the ease of doing business ranking.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Norway is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.

Banking

Banks are open from Monday-Friday 9 am - 4 pm

Working Week

The standard working week is a 7.5 hour workday or 37.5 hours during a week.

Labor Law

While an employer can decide on who they wish to employ, there are exceptions to this right including the fact that it is illegal to discriminate against applicants based on gender, pregnancy, parental leave, ethnicity, religion and other factors. The general rule is that employees must be employed on a permanent basis but temporary appointments may be allowed in certain circumstances.

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Main Industries

Shipping, food processing, shipbuilding, metal, chemicals, mining and fishing

GDP Growth

3.80%

Dates & Numbers

dd/mm/yyyy

Official State Name

The Kingdom of Norway

Population

5.379 million

Capital

Oslo

Major Languages

Norwegian

Currency

Norwegian krone (kr)

Internet Domain

.no

International Dialing Code

+47

Norway
Oslo, NO
5:54 pm, February 2, 2023
-7°C
scattered clouds

Payroll in Norway

In Norway and the Nordic region, international payroll services and HR administration are becoming increasingly challenging and resource-consuming due to the demanding statutory requirements and frequent legislative changes.It is a safe bet to outsource the work to a local team of experienced experts. Besides reducing the administrative burden, saving time and resources, it also eliminates the risk of non-compliance and resulting penalties from local statutory authorities.

With their experience, expertise, and smart payroll technology, our Norway payroll team is among the best in the industry in terms of outsourcing payroll services. Mercans is regarded as one of the top payroll companies in Norway. In addition to this, we are also listed as one of the largest payroll outsourcing companies for the provision of payroll services, making us a leader in the field of payroll outsourcing. Even when it comes to Collective Bargaining Agreements, also known as tariffavtale, our team has you covered.

As an established payroll provider, our payroll services remove the hassle of managing complex and time-consuming payroll procedures, such as managing Real Time Information (RTI), reporting, and pension auto-enrolment, leaving your team free to concentrate on their strengths, regardless of ever-evolving regulations. 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, so you can rest assured that you are in good hands.

Payroll

Employers must deduct tax from the salary paid to employees. Multinational organisations who manage global payroll including in Norway should take note that they must ensure the provision of occupational pension for their employees. The minimum pension rate is 2% of gross salary. Holiday pay on salary and other work remuneration must also be calculated and set aside by employers. At the end of the year and before 1 February, the employer must provide each employee with an annual summary of all the information reported to the authorities.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports must be kept for 7 years

Reports

4 weeks and 1 day of paid holiday each calendar year

Annual Leave

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

Sick Leave

Parents are entitled to a total of 12 months' leave in connection with the birth (including after birth)

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

In the event that your main concern is a lack of speed or local expertise when expanding into or hiring employees in Norway, our employer of record services are the best option for achieving your global expansion goals.

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

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.

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.

Tax and Social Security

Transparent and easy to understand, the Norwegian corporate tax system imposes a corporate income tax of 22% on net income. The Social Security Law addresses a range of benefits and payments to the National Insurance Scheme.

Tax

The main taxes for corporations are corporate tax and National Insurance contribution (NIC). The NIC varies depending on geographical location of the work performed. The rate for calculating the employer’s National Insurance contributions varies between 0 and 14.1% depending on where the enterprise is located. Norwegian incorporated companies do not have to pay wealth tax on their net assets. While Norwegian tax rules do not offer many incentives, there is an R&D incentive scheme called SkatteFUNN which offers tax credit for R&D costs.

A d-number can be assigned to a foreign worker who does not have a Norwegian National ID number and who needs an identification document for communicating with Norwegian authorities. This number is also necessary to obtain a tax deduction card.

22%

Corporate Income Tax

38%

Personal Income Tax

25%

Sales Tax

25%

VAT

Social Security

The primary general social insurance schemes in Norway are the National Insurance Scheme, the Family Allowance Scheme and the Scheme providing a cash benefit for families with small children.

14.1%

Social Security Rate for Employers

8.2%

Social Security Rate for Employees

Employment Law

Employers have several key obligations towards their employees including those laid down in the Working Environment Act, the National Insurance Act and the Annual Holidays Act. An employer is entitled to lay off employees in the event of a temporary shortage of incoming orders, accidents or natural events which render restrictions or stoppages necessary.

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 has prepared a standard employment contract which fulfils the minimum requirements for the scope of an employment contract.

Working condition

All employees must be provided with a safe and appropriate working environment that meets the regulations of the Working Environment Act. The law takes a stringent approach to HSE (health, safety and environment) and requires all enterprises to have written descriptions of the HSE targets, routines for dealing with defects and deficiencies and what work must be done and timeframe for it.

Leaves

In certain cases, employees have a statutory right to leave. Whether an employee is entitled to paid or unpaid leave will depend on which leave is applied for and the reason for the leave. There are many different statutory entitlements for leave including for pregnancy check-ups for pregnant women, leave upon take-over of foster child, illness of a child, end of life care, military service and much more.

Employment termination

Employees may be made redundant if there are objective grounds for the redundancy. The Working Environment Act mandates rules regarding discussions which need to occur prior to decisions concerning redundancy. Employees may also have their employment terminated when they reach the age of 72. A lower age limit can be set (not less than 70) provided the limit is notified to employees and practised consistently.

Varies

Minimum notice period for terminating an employee

12

Total number of public holidays

37.5

Working hours per week

3 days

Total number of days for Compassionate & Bereavement Leave

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. The rules vary depending on the country the worker comes from.

Residency permits

There are different rules applicable to employers depending on whether they wish to employ an EU (European Union) or EEA (European Economic Area) national or someone from a country outside the EU/EEA. An EU/EEA national can apply for a residency card or apply for permanent right of residence. If an individual wants to work in Norway, a residence permit is required. If the individual comes from a country outside the EU/EEA and wishes to work in Norway, a residence permit for work (previously called a work permit) must be applied for.

Work Permit validity

2 years

Required Documents

Invitation letter from the Norwegian company that you will be visiting, their address details and the dates of your visit

Certificate from your employer stating that your business travel is permitted

Latest six month business bank statement

Memorandum and Articles of Association in original certified copy (registered with joint stock companies), Trade License and Proprietorship/Partnership documents

Regarding the applicant’s expenses during their stay in the Schengen zone, either the employer or the partner company must outline the coverage of expenses on the letter or invitation itself.

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!

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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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