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Hiring in Norway gives employers access to a highly skilled workforce with strong expertise in energy, technology, maritime, engineering, healthcare, and professional services. Norway consistently ranks among the world’s most stable and productive labor markets, supported by strong employee protections and transparent employment practices.
Employment in Norway is governed by the Working Environment Act, which regulates employment contracts, wages, working hours, termination, and employee rights. Collective agreements play an important role in defining pay and overtime across many industries. Employers must comply with both statutory rules and applicable agreements when hiring in Norway.
Facts & Stats
Key Employment Rules Employers Must Know
Employment relationships in Norway are regulated by the Working Environment Act. Employment contracts must be provided in writing and define job role, salary, and working conditions. Probation periods are permitted for up to 6 months.
The standard working week in Norway is 40 hours, typically spread across five working days. Many sectors operate shorter hours through collective agreements.
Overtime is regulated by law and allowed only in specific circumstances. Overtime work must be compensated with additional pay of at least 40% above the regular hourly wage or through time off in lieu, depending on agreement.
Norway does not have a statutory national minimum wage. Minimum pay levels are typically set through collective bargaining agreements and may be legally extended to certain industries. Employers must follow applicable sector standards.
Employees are entitled to paid leave and statutory protections related to termination, notice periods, and severance pay.
Overview of Employer, Employee, and Individual Taxation in Norway
Approximately 8.2%
Employees contribute around 8.2% of their gross salary toward social security. This contribution is deducted automatically from wages.
Approximately 14.1%
Employers contribute approximately 14.1% of an employee’s gross salary toward social security, funding pensions, healthcare, unemployment, and parental benefits.
22%
Norway applies a flat income tax rate of 22%, with additional progressive surtaxes applying to higher income levels.
Norway operates a mandatory public pension system funded through employer and employee contributions. Occupational pension schemes are also mandatory for employers.
Employment termination in Norway must comply with the Working Environment Act. Employers must have objective grounds for dismissal and follow fair procedures. Notice periods depend on the employee’s length of service and age and generally range from one to six months. Immediate dismissal is allowed only in cases of serious misconduct.
Notice periods in Norway depend on the employee’s age and length of service. They typically range from one to six months and apply to both employers and employees unless extended by contract.
Severance pay is not mandatory under Norwegian law but may apply through collective agreements or individual employment contracts, particularly in redundancy situations.
Employees in Norway are entitled to at least 25 days of paid annual leave per year. Paid sick leave is available, with employers covering the initial period before national insurance benefits apply. Parental leave is generous, allowing up to 49 weeks at full pay or 59 weeks at reduced pay, funded through social insurance. Employees are also entitled to paid bereavement leave, typically granted through collective agreements.
January 1
New Year’s Day
May 1
Labour Day
May 17
Constitution Day
December 25
Christmas Day
Frequently asked questions
What makes Iris helpful for hiring in Norway?
Iris helps employers source and evaluate candidates efficiently while supporting compliance with Norwegian labor laws and collective agreements.
Is it mandatory to hire Norwegian nationals?
No. Employers can hire both Norwegian and foreign nationals. Non-EU employees must have valid work permits, while EU/EEA citizens can work freely in Norway.
How is severance calculated in Norway?
Severance pay is not statutory and depends on collective agreements or employment contracts. It is commonly offered in redundancy cases.
What are the official working hours in Norway?
The standard working week in Norway is 40 hours, typically spread across five days.
Do employees in Norway receive a pension?
Yes. Employees are covered by a mandatory public pension system, with occupational pensions required for employers.
