Payroll in Norway

Mercans is your premier choice for top-notch payroll services in Norway. With our unwavering commitment to excellence, we deliver accurate and compliant payroll solutions tailored to businesses of all sizes. Benefit from timely and precise payroll transactions, along with the convenience of multi-currency payments in the Norwegian market. Count on Mercans as your dedicated local payroll provider in Norway, supported by our team of in-country specialists with extensive knowledge of local laws, ensuring a seamless payroll experience aligned with your business requirements.

Everything you need to know before running payroll in Norway

Scope of Payroll Services in Norway

In Norway, Mercans offers comprehensive payroll services tailored to your business needs. Here’s what we provide:

• Employee Master Data Maintenance: Ensure accuracy and integrity in employee records.
• Payroll Processing: Timely and accurate processing of payroll transactions.
• Statutory End-of-Service Calculations: Calculate statutory end-of-service benefits for employees.
• Processing WFM/Leave & Time Transactions: Handle workforce management, leave, and time transactions efficiently.
• Support Desk for Employer: Provide dedicated support for employer queries and assistance.
• External Statutory Audit Support: Receive expert support for external statutory audits.
• Statutory Compliance Information: Stay informed and compliant with local statutory regulations.
• Statutory Registrations and Declarations (online only): Complete statutory registrations and declarations online.
• Retrieval of Tax Information for New Hires (online only): Obtain tax information for new hires through online platforms.
• Leave Reporting to Statutory Authorities: Submit leave reports to statutory authorities.
• Payroll & HR Advice: Access expert advice on payroll and HR matters.
• Gross-to-net Calculations (Simplified): Perform simplified gross-up calculations for tax purposes.
• Fringe Benefits Processing and Reporting: Manage and report on fringe benefits.
• Time Data Evaluation (statutory overtimes only): Evaluate time data for statutory overtime calculations.
• Collective Labor Agreements & Trade Unions Compliance, Processing and Reporting: Ensure compliance with collective labor agreements and trade unions.
• Private Pension Plan Contributions Processing and Reporting: Process and report private pension plan contributions.
• Voluntary Salary Sacrifice for Additional Pension Contributions: Facilitate voluntary salary sacrifice for additional pension contributions.
• Garnishment Management: Manage garnishments efficiently.
• Voluntary Statutory Contributions & Tax Credits: Handle voluntary statutory contributions and tax credits.
• Financial Accruals Setup and Reporting: Set up and report financial accruals accurately.
• Equity-based Compensation Processing: i.e. RSUs: Process equity-based compensation such as RSUs.
• Third-Party Payment Files: Manage third-party payment files securely.
• Legal Entity Setup & Registration: Assist in legal entity setup and registration.
• Custom Interfaces: Develop custom interfaces as per client requirements.
• Leave Management: Efficiently manage employee leave requests and records.
• Time & Attendance Module: Implement a time and attendance module for tracking.
• Employee & Manager Self-Service (ESS & MSS): Provide self-service portals for employees and managers.
• Payroll Disbursement / Money Movement Services: Facilitate payroll disbursement and money movement services.
• Financial Accruals: Accurately report financial accruals for accounting purposes.
• Client-specific Employee Lifecycle Alerts: Receive alerts for client-specific employee lifecycle events.
• HR Forms & Policies: Access HR forms and policies for compliance.
• Compensation & Benefits Administration: Administer employee compensation and benefits.
• Risk Management: Manage and mitigate HR-related risks effectively.
• Expatriate Management: Manage expatriate assignments and compliance.
• Employee Contact Centre: Provide a dedicated contact center for employee queries.
• Payroll & HR Advisory Services: Access expert advisory services on payroll and HR matters.

Payroll Cycle, Working Hours and Overtime

Payroll Cycle

Payroll in Norway is commonly processed monthly, and many employers pay salary once a month. Unless otherwise agreed, salary must be paid at least twice a month, and payment must be made to the employee’s bank account. A payslip must be provided at or immediately after payment.

Additional payroll types may include advance payment runs, supplemental salary runs, or bonus runs, depending on client requirements.

Working Hours

Normal working hours in Norway are generally 9 hours within 24 hours and 40 hours over 7 days. Employees are also entitled to at least 11 hours of continuous off-duty time per 24 hours and 35 hours of continuous off-duty time per 7 days. Break rules apply once daily working hours exceed 5.5 hours.

Overtime

Work beyond ordinary working hours is overtime. Employees are entitled to an overtime supplement of at least 40 percent of the agreed hourly wage, and the supplement can be combined with time off only if the premium is still paid.

Minimum Wages and 13th Month Salary

Minimum Wages 

Norway has no universal statutory minimum wage. Instead, minimum wages apply only in nine sectors where collective agreements have been generally extended by law. Outside those sectors, wages are set by contract or collective agreement.

13th Month Salary

There is no mandatory requirement to pay a 13th or 14th month salary in Norway.

Company Setup in Norway 

When establishing a business in Norway, registration with the Brønnøysund Register Centre is mandatory for entities that need a Norwegian organisation number. Foreign businesses needing a Norwegian organisation number must register as a Norwegian registered foreign business (NUF).

Choose Your Company Type

Sole Proprietorships

• Unlimited personal liability.
• Owned by a natural person, operating at personal risk.
• Owner cannot be an employee.
• Inferior social security rights.
• Not a separate legal entity, less investor-friendly.
• No equity requirements.

Private Limited Company (AS or ASA)

• Limited personal liability.
• Separate legal entity, investor-friendly.
• Minimum share capital applies for limited companies.
• Owners can also be employees.

Norwegian Branch of a Foreign Company (NUF)

• No equity requirements.
• Subordinate to the foreign company.
• Must follow Norwegian rules.
• Registration in the Register of Business Enterprises is required for commercial activities.

Income Tax Entity

• Subject to corporate income tax under Norwegian rules.
• Advance tax payment schedules depend on the organizational form.
• Notifications and submissions are done through the Altinn web portal.

Setting up a business involves choosing the appropriate company type based on liability, legal entity status, and tax considerations, with the registration process and requirements varying accordingly.

Payroll Processing in Norway

Mercans standard payroll processing in Norway includes the following

• Once Payroll has been submitted for Processing, Mercans processes payroll conducting checks and validations mentioned in this document and Mercans – Payroll Audit Checklist.
• Mercans ensures that the payroll calculations processed by Mercans are in accordance with the applicable statutory regulations, Client-specific calculations rules and Payroll Processing Timetable.
• After payroll results and reports have been validated and checked, standard payroll reports are posted to PAC Payroll view Payroll Reports section.
• Client reviews posted reports to validate correctness of the payroll.
• If any corrections are needed Client Rejects Payroll in PAC Payroll view. Mercans Notification Center informs both parties of Payroll rejection and Mercans re-opens payroll for inputs. This action opens PAC for inputs and payroll processing moves back to the prior step.
• If no corrections are needed, Client Approves Payroll in PAC Payroll view.
• Approving Payroll closes the payroll for any further changes.
• Approving Payroll is preceded by generating Bank/payment files. Value date for the Bank/payment file is input by Mercans before generation of the file.
• Client reviews and releases Bank/payment files.
• Client informs Mercans on the Pay-date to post Pay slips to ESS. Pay-slips are posted only for the employees who have access to ESS.
• Mercans re-generates Pay-slip Summary Report including data on Pay-slip Submission to ESS, issues service fee invoice and posts these to Secure File Transfer portal.
• Payroll period is closed by Mercans once the off-cycle payrolls (if any) have been processed successfully.

Payroll Taxes in Norway

Income Tax

Norwegian income taxation distinguishes between general income and personal income. General income is taxed at 22 percent, while bracket tax applies to personal income at progressive rates. For the 2026 income year, bracket tax starts at NOK 226,101 and rises through five steps up to 17.8 percent.

For foreign workers in the PAYE scheme, the tax rate is 25 percent. If the worker is exempt from paying national insurance contributions in Norway, the PAYE rate for 2026 is 17.4 percent.

Social Security

National insurance contributions for salary income are 7.6 percent for persons aged 17 to 69 in the income year. Employer’s national insurance contributions are calculated on gross salaries and are zone-based; the standard rate in general industries is 14.1 percent.

Payroll Compliance in Norway

Statutory Filings

In Norway, employers are obligated to submit the following statutory filings. Mercans assists you in completing the necessary filings as per the Norwegian local laws.

Payroll Reports: Below is a summary of various payroll reports, detailing their authorities, frequency, and filing methods:

A-melding (A01/A02)

• Authority: Norwegian Tax Administration
• Frequency: Monthly
• Online Filing: Available
• Manual Filing: Not Applicable
• Description: The a-melding is the core monthly payroll report used by employers in Norway. The deadline is the 5th of each month, or the first following working day if the 5th falls on a weekend or public holiday. From January 2026, tax withholding must be paid directly to the Norwegian Tax Administration on the first working day after wages have been paid and withholding has been carried out.

Self-reported sick leave (RA-0182)

• Authority: Statistics Norway (SSB)
• Frequency: Periodically
• Online Filing: Available
• Manual Filing: Not Applicable
• Description: This report, required periodically by Statistics Norway, focuses on self-reported sick leave data. Employers can file online, simplifying the reporting process and ensuring accurate data submission.

Salary and pension cost (RF-1022):

• Authority: Norwegian Tax Administration
• Frequency: Monthly
• Online Filing: Available
• Manual Filing: Not Applicable
• Description: The RF-1022 report, mandated monthly by the Norwegian Tax Administration, encompasses salary and pension cost data. It provides online filing options for efficient reporting and compliance with regulatory requirements.

Income report to NAV (NAV 08-30.01):

• Authority: Norwegian Labour and Welfare Administration (NAV)
• Frequency: Periodically
• Online Filing: Available
• Manual Filing: Not Applicable
• Description: Required periodically by the Norwegian Labour and Welfare Administration, this report focuses on income-related data for benefits processing. It offers online filing options and ensures timely and accurate reporting to NAV.

Employee Benefits in Norway

Mandatory Benefits in Norway

Medical Coverage

• Health care is primarily funded through Norway’s public system.
• Private health insurance may be offered by employers but is not mandatory.

Pension

• Most private-sector employers must set aside funds under the mandatory occupational pension scheme (OTP).
• Employers must save at least 2 percent of salary for pension where OTP applies.

Work Injury Insurance

All employers must take out private occupational injury insurance for their employees.

Non-Mandatory Benefits in Norway:

Working from Home (WFH)

• WFH is increasingly common, with terms usually set out in writing.

Life Insurance

• Many employers offer life and health insurance to cover accidents or incapacity.

Supplementary Health Insurance

• Some companies provide additional health, dental, and vision coverage.

Stock Options

• Often offered by startups, stock options may be taxed when exercised or when shares are sold.

Free Meals

• Subsidized or free meals are common in some sectors and may be taxable benefits.

Paid Relocation

• Some employers cover relocation expenses for new hires.

Flexible Working Hours

• Employers may implement flexible hours to support work-life balance.

Gym Memberships

• Some companies subsidize or reimburse gym memberships.

Public Transportation Reimbursement

• Reimbursement for commuting costs may be provided by some employers.

Cash Bonuses

• Bonus plans may be offered at the employer’s discretion.

Additional Days Off

• Some companies provide extra days off beyond statutory holidays and vacation allowances.

Additional Payment During Parental Leave

• Employers may top up parental benefit payments in some cases.

Other Benefits in Norway:

Mobile Phone and Other Electronic Communication Means:

• Some employers provide mobile phones or reimburse communication expenses.

Insurances

• Additional insurance coverage beyond mandatory requirements may be offered by employers.

Company Car

• Certain employers may provide company cars for employees.

Use of Private Car

• Reimbursement for the use of a private car for work-related travel may be offered by some employers.

Gifts from Employer

• Employers may provide gifts to employees as a form of recognition.

Bonus Points Earned in Connection to Work

• Employees may earn bonus points or rewards in connection to work-related activities.

Paid and Unpaid Leave Policy in Norway

Paid and Unpaid Leave

In specific circumstances, employees have a legal entitlement to leave. Whether leave is paid or unpaid depends on the type of leave and the reason for it. In some cases, NAV pays benefits directly or reimburses the employer. In other cases, the employer must cover salary during the leave period.

Statutory Leave Laws in Norway

PTO (Paid Time Off)

• Employees are entitled to 25 working days of holiday each year, and holiday pay must be at least 10.2 percent of the basis for holiday pay calculations. Employees over 60 are entitled to at least 12.5 percent.
• Collective agreements often provide a fifth week of holiday and a 12 percent holiday pay rate.
• Holiday pay is earned the year before it is paid and is paid when the holiday is taken or when employment ends.

Maternity Leave, Child Raising Leave, Parental Leave

• Parents are entitled to 12 months’ leave in connection with a birth, including the mother’s pregnancy leave and 6 weeks after birth, and each parent is also entitled to an additional year’s leave after the first year.
• Parental benefit and related income reporting are handled through NAV.

Adoption Leave and Foster Child Care Leave

• The right to leave also extends to adoption and foster child care situations.

Sick Leave

• Employers normally pay sick pay for the first 16 days of sickness absence, after which NAV may take over if eligibility conditions are met.
• Employees must provide a doctor’s certificate for absences lasting four or more days.
• Self-certification may be used for short absences under the applicable rules.

Child-Care Leave

• Parents are entitled to leave to care for sick children under NAV rules.

Family Care Leave

• Employees may be entitled to unpaid leave to care for family members under applicable rules.

Jury Duty Leave, Voting Leave, Bereavement Leave, Military Leave

• These types of leave are not specifically regulated by law and may be subject to company policies or collective agreements.

Benefits of Payroll Outsourcing in Norway

In Norway, our Payroll services are driven by a robust tool strategically designed to operate seamlessly across diverse countries, ensuring regional uniformity and meeting our clients’ specific requirements. This tool reflects our commitment to delivering:

• Stringent Security Measures: Incorporating industry-leading security measures to safeguard sensitive data, with ISO 27001 and ISAE3402 certifications ensuring strict adherence to information security protocols.
• Consistent Performance: Ensuring consistent and sustainable performance that meets the dynamic demands of payroll services.
• Flexibility and Scalability: Offering flexibility and scalability to accommodate evolving client needs and adapt to changing business environments.
• Collaborative Cloud Platform: Utilizing a Cloud-based platform that facilitates collaborative work, promoting efficiency and accessibility across teams.

Our adherence to ISO 27001 and ISAE3402 certifications underscores our commitment to maintaining the highest standards of information security and operational integrity.

Key Features of Electronic Payroll Support in Norway:

• Full Traceability: Enabling a traceable process from generation to transmission and validation, with meticulous validation by our expert team ensuring consistency between stored information and that accepted by regulatory bodies.
• Efficiency in Human Resources: Enhancing the efficiency of the human resources area by streamlining the payroll settlement process, resulting in significant time savings through optimized use of our electronic payroll support.
• Certified Suppliers: Partnering with certified suppliers who uphold the highest standards of information security with ISO 27001 certification, ensuring secure data transmission processes that bolster the integrity of our services.

In Norway, Mercans ensures that our clients not only benefit from a state-of-the-art payroll tool but also enjoy the peace of mind that comes with top-tier information security standards upheld by ISO 27001 and ISAE3402 certifications.

Payroll Solutions in Norway

Unlock the potential of seamless payroll processing in Norway with Mercans’ Global Payroll Solutions. Our adaptable models guarantee local compliance, facilitate multi-currency transactions, and integrate seamlessly with global Human Capital Management (HCM) and Enterprise Resource Planning (ERP) systems. Ensuring accurate payments has never been easier.

Discover Our Flexible Models:

• SaaS (Software as a Service): Customized for enterprise businesses managing multi-country payroll with diverse data points, locations, currencies, and languages. Our SaaS model streamlines operations for maximum efficiency.
• Managed Services: Tailored for mid-sized and large enterprise businesses, our Managed Services model supports multi-country payroll operations. It provides access to on-demand HR expertise, ensuring security, reliability, and compliance.

Streamline Payroll with Mercans’ Technology and Integrations

Mercans leads the way in providing outstanding payroll services in Norway, offering a diverse range of tailored solutions to meet our clients’ unique needs. Choose Mercans as your reliable partner, ensuring a smooth and effective payroll process in Norway’s dynamic business environment.

• Innovative Technology: Experience the forefront of innovation with Mercans’ state-of-the-art technology driving our global payroll solutions. Learn more about our technological advancements here.
• Seamless Integrations: Effortlessly integrate your Human Capital Management (HCM) systems with Mercans’ solutions, enhancing efficiency and connectivity. Discover the benefits of integration here.
• Recognized Excellence: Partner with a recognized leader in the field. Mercans has been honored for its dedication to delivering exceptional payroll services. Explore our awards and recognitions here.