Norway, officially known as the Kingdom of Norway, is a country situated on the Scandinavian Peninsula in Northern Europe. It is bordered by Sweden, Finland, and Russia, and has a long coastline facing the Skagerrak Strait, the Barents Sea, and the North Atlantic Ocean. Norway has a workforce population of over 3 million people (2023) and a GDP of 442 billion US dollars (2024).

With a small, open economy, Norway is highly dependent on its natural resources, including oil, gas, and seafood. Norway’s sea areas are 6 times larger than the size of their land areas, making its ocean-based industries integral to the Norwegian economy. Employees in Norway have a high standard of living, making it crucial for companies to abide by employee benefits Norway offers a range of schemes, such as pensions, parental leave, overtime compensation, and set working hours.

This guide will provide a thorough overview of Norwegian labor law, including details on national insurance contributions, mandatory employee benefits, and supplementary benefits worth considering. We’ll also explain how Remote People can help simplify employment in Norway through our Employer of Record (EOR) services and local recruitment support.

Norwegian Employment Laws

Norwegian labor law is governed by the Working Environment Act of 2005, providing details on employer obligations and employee rights in the workplace. This was entered into government in January 2006 and was updated as recently as September 2024.

The purpose of the act is to “secure a working environment that provides a basis for a healthy and meaningful working situation, affords full safety from harmful physical and mental influences, and always has a standard of welfare consistent with the level of technological and social development of society”.

Companies must consult with legal professionals before hiring in Norway to ensure all labor laws are strictly adhered to.

Mandatory Employee Benefits in Norway

There are many mandatory employee benefits in Norway that employers must provide to their employees. These are explained in detail below.

Social Security Contributions

Norway has instigated a National Insurance Scheme, which collects contributions from employers and employees to help with the following benefits:

  • Old-age pension
  • Healthcare benefits
  • Disability benefits
  • Survivors benefits
  • Sick pay
  • Maternity/parental benefit
  • Unemployment benefit
  • Child benefit

Employees must contribute 7.8% of their pensionable income towards national insurance. Self-employed people must contribute 11% of their income, while other personal income, such as pensions, has a rate of 5.1%.

Employers’ contributions are assessed based on a percentage of paid-out wages and differ depending on where they’re based. Employer national insurance rates can vary from 0% – 14.1% depending on the geographical situation and level of economic development.

Annual Paid Leave

Employees in Norway are entitled to a minimum of 25 days of paid leave per year. Saturdays are considered working days in Norway, which means that employees will typically be provided with four weeks and one day of paid holiday every calendar year.

Holiday time is not usually allowed to be split into individual days unless agreed mutually between employer and employee. 

Employees over the age of 60 are entitled to one extra week of paid leave. It’s up to employees when they wish to take this holiday, but they must provide their employer with a minimum of 2 weeks’ notice.

Working Hours

Typical working hours in Norway are 40 hours a week over 7 days – usually with 9 hours worked each workday. This is prescribed in the Working Environment Act, but may also be regulated by employment contracts and any collective agreements that are in place.

For employees who work shifts, nights, or Sundays, working hours are usually 38 or 36 hours per week.

Employees are entitled to 11 hours in every 24 hours between shifts, and 35 hours of continuous off-duty time for every 7 days. Regular breaks should also be provided if an employee’s working hours exceed 5.5 hours. Breaks must amount to at least half an hour (collectively) if an employee works 8 hours or more.

The rules on working hours may differ for employees in managerial positions or positions with high levels of independence.

National Minimum Wage

There is no official minimum wage set in Norway. However, there are agreements on minimum wage for specific sectors, including:

  • Building
  • Hotel, Restaurant, and Catering
  • Cleaning
  • Maritime Construction
  • Agriculture and Horticulture
  • Fish Processing
  • Passengers travel by tour bus
  • Freight Transport by road 
  • Electricians

Overtime Pay

Hours worked over the amount set in an employment contract are considered overtime. Employees in Norway are entitled to a premium of at least 40% of their agreed hourly rate on all overtime hours worked. Overtime hours must not exceed:

Time PeriodMaximum Hours
7 days10 hours
Consecutive 4-week period25 hours
52 weeks200 hours

Employers may exceed overtime limits in mutual agreement with an employee, or if they have received permission from the Norwegian Labour Inspection Authority.

Employees may be exempt from working overtime hours for health reasons or social reasons (e.g., having young children).

Paid Public Holidays

Public holidays in Norway are paid by some companies, but this is not a legal obligation. The Norwegian public holidays are as follows:

  • January 1: New Year’s Day 
  • April 2: Maundy Thursday (movable date)
  • April 3: Good Friday (movable date)
  • April 5: Easter Sunday (movable date)
  • April 6: Easter Monday (movable date)
  • May 1: May Day / Labour Day 
  • May 14: Ascension Day (movable date)
  • May 17: Constitution Day 
  • May 24: Whit Sunday / Pentecost (movable date)
  • May 25: Whit Monday (movable date)
  • December 25: Christmas Day 
  • December 26: Boxing Day

Paid Sick Leave

Employees in Norway that have national insurance coverage are entitled to sick leave. At least 4 weeks of work must have been carried out for an employee to be eligible for sick leave, and employees must have an annual income of at least 50% of the National Insurance basic amount (62,014 NOK).

Sickness benefits will replace the full income an employee normally earns up to a maximum of NOK 744,168. Employees under the age of 67 are entitled to 52 weeks of sick leave, while employees between the ages of 67 and 70 are entitled to sickness benefits of up to 60 days.

Maternity Leave

Mothers in Norway are entitled to at least 15 weeks of maternity leave. The first six weeks of leave must be taken after the birth, with the other 9 weeks following this or saved for another time. 

Mothers may also take 3 weeks of paid leave before the estimated due date. Maternity leave is paid as an employee’s full wage for 15 weeks, or at 80% for 19 weeks.

Paternity Leave

Fathers in Norway also receive 15 weeks at full pay for paternity leave or 19 weeks at 80%. This can be taken from week 7 after birth or later. Paternity leave can be taken consecutively, divided up, or combined with partial work.

Parental Leave

All parents in Norway are entitled to a total of 12 months of parental leave in addition to the first 12 months of a child’s life. Parental leave must be taken directly after the first year – single parents are entitled to 2 years of parental leave. You must meet the following requirements to be eligible for parental leave:

  • You must have worked in Norway within the last 10 months
  • You must have a minimum income
  • You must live in Norway or be a member of the Social Security system

Parental leave is paid at either 100% of an employee’s wage for 49 weeks, or 80% for 59 weeks. Additional weeks may be granted for multiple births/adoptions.

Pension

The Norwegian pension system is divided into the following 3 sections.

National Insurance Scheme Retirement Pension

All employees in Norway are entitled to a retirement pension paid via the National Insurance scheme, provided that they’ve lived or worked in Norway for at least 5 years after their 16th birthday.

This means that you’ve been covered by National Insurance or have received pensionable income in Norway over a minimum period of 5 years.

A retirement pension can be drawn at 67 years of age, and how it is drawn is up to the employee.

Occupational Pension Schemes

All employees are entitled to an occupational pension scheme regardless of whether the employee has worked in the public or private sector.

Generally, occupational pensions are paid from the age of 67 and are contributed to by both employers and employees.

Private Pension Savings

Employee savings can also form part of a pension known as Private Pension Savings.

These are formed by different savings products designed specifically for pension savings and are often locked so that they cannot be withdrawn until a certain age.

Severance Pay

There is no legal requirement for severance pay in Norway. Some employers may choose to offer pay as part of a termination agreement, but there is no right to statutory severance pay.

Supplementary Employee Benefits in Norway

It’s highly recommended that employers offer supplementary employer benefits in addition to mandatory benefits to attract potential employees and improve staff retention rates.

Some examples of supplementary employee benefits in Norway include:

  • Performance bonuses
  • Enhanced pension schemes
  • Private healthcare
  • Transport expenses
  • Food and housing benefits

Optimize Employee Benefits with Remote People

Remote People offers Employer of Record (EOR) services in Norway, helping companies hire employees with minimal stress and full legal compliance. Our EOR solution ensures that employee benefits, payroll, taxes, and other employment tasks align with the latest Norwegian labor laws.

With deep knowledge of Norway’s labor and tax regulations, our EOR team efficiently manages the legal and administrative steps involved in hiring—reducing risk and simplifying the process.

Remote People’s EOR services in Norway make it easier to build your workforce without the complexity of setting up a local entity. You can also find qualified employees in Norway via Remote People’s Norway recruitment services. You can work with an experienced team of people who fully understand recruitment in Norway to find the best people for your business and better fulfill your recruitment needs.