How to run payroll in Norway

The Norway payroll cycle follows a monthly schedule. Most companies process payments on the 25th of each month or the last working day of the month.

Norwegian labor law requires employers to pay salaries at least once per month. While monthly payments are the standard, some companies choose bi-weekly cycles, particularly in retail or hospitality sectors.

Payment timing requirements

Employers must pay salaries no later than one month after the work period ends. Most companies stick to consistent dates - either the 25th or the last working day of each month.

If the regular pay date falls on a weekend or public holiday, payment must be made on the preceding working day. Late payments can result in employee claims for interest compensation.

Holiday pay (feriepenger)

Norway has a mandatory holiday pay system that provides employees with extra income during their summer vacation. Holiday pay equals 12% of the previous year's gross salary for most employees.

Holiday pay is typically paid out in June, before the main summer holiday period. Employees over 60 years old receive 10.2% instead of 12%. The payment is subject to regular income tax and social security contributions.

Payment methods

All salary payments in Norway must be made through electronic bank transfers to Norwegian bank accounts. Cash payments are prohibited except in very limited circumstances.

International companies must ensure employees have Norwegian bank accounts (NOK accounts) to receive their salaries. Payments in foreign currencies aren't permitted for Norwegian employment contracts.

Banks typically process transfers on the same day if submitted before 3:00 PM on working days. Most payroll systems integrate directly with Norwegian banking networks for automatic processing.

Payslip requirements

Norwegian law requires detailed payslips (lønnsslipper) for every payment. Payslips must be provided in Norwegian and include specific mandatory information.

Electronic payslips are acceptable and widely used. Most companies deliver payslips through secure employee portals or email systems. Employees have the right to request paper copies if needed.

Income tax in Norway ranges from 22% to 45.8%, with the top rate kicking in at kr 937,900.

Norway uses a dual income tax system that splits your employees' income into two categories: ordinary income and personal income. Both face different tax treatments, and you'll need to withhold correctly for each.

Income tax brackets

Norway's 2026 tax structure includes a flat 22% tax on ordinary income, plus progressive surtax rates on higher earnings.

Annual Income (kr)	Ordinary Income Tax	Surtax	Total Rate
kr 0 - 208,050	0%	0%	0%
kr 208,051 - 292,850	22%	0%	22%
kr 292,851 - 670,000	22%	1.7%	23.7%
kr 670,001 - 937,900	22%	4.0%	26.0%
kr 937,901 - 1,350,000	22%	13.7%	35.7%
kr 1,350,001+	22%	16.7%	38.7%

Add municipal tax of approximately 11% on top of these rates. Municipal rates vary by location but average 11.1% across Norway.

Withholding requirements

You're responsible for withholding income tax from every payroll. Register with the Norwegian Tax Administration before your first pay run.

Submit monthly tax returns by the 5th of the following month. Late submissions trigger automatic penalties of kr 1,000 plus 1% of the withheld amount per started month.

The annual reconciliation deadline falls on January 31st for the previous tax year. Employees receive their tax cards (skattekort) showing withholding rates, which you must follow exactly.

Tax registration

New employers need three key registrations: employer registration, VAT registration (if applicable), and payroll tax registration. Complete these at least 14 days before your first payroll.

You'll need your Norwegian organization number, business registration certificate, and details of your first employees. Foreign companies must appoint a Norwegian tax representative.

Special tax considerations

Non-resident employees face different rules. EU/EEA citizens can claim the personal allowance if 90% of their global income comes from Norway. Non-EU residents typically pay tax from the first kroner earned.

Tax treaties may reduce withholding rates for certain nationalities. Check bilateral agreements before applying standard rates.

Petroleum sector employees working offshore face special tax zones with different rates and allowances.

Common tax mistakes

Wrong tax cards: Using outdated or incorrect tax cards leads to over- or under-withholding. Penalties reach kr 12,000 per employee for systematic errors.

Municipal tax errors: Forgetting to add municipal tax or using wrong municipal rates. Each municipality sets its own rate between 7% and 15%.

Late reporting: Missing the 5th of month deadline costs kr 1,000 minimum plus percentage penalties. Set up automated reminders.

Holiday pay taxation: Taxing holiday pay in the wrong period. Holiday pay earned in one year but paid in the next faces specific timing rules that trip up many employers.

A kr60,000 salary in Norway actually costs you kr67,740. Here's the breakdown.

Norway keeps employer contributions relatively simple compared to other European countries. You'll pay social security contributions on all salaries, with rates varying by region and industry.

Contribution breakdown

Contribution Type	Employer Rate	Employee Rate	Annual Cap 2026
Social Security (Arbeidsgiveravgift)	10.6% - 14.1%	0%	None
Pension (Tjenestepensjon)	2.0% - 5.0%	0% - 2.0%	kr1,398,000
Workers' Compensation	0.1% - 2.8%	0%	None

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Social security rates depend on your business location. Zone 1 (most of Norway) pays 14.1%, while northern and rural areas get reduced rates as low as 10.6%. Most international companies pay the standard 14.1% rate.

Total employer cost calculation

For a kr60,000 monthly salary in Zone 1:

• Base salary: kr60,000
• Social security (14.1%): kr8,460
• Minimum pension (2%): kr1,200
• Workers' compensation (avg 0.5%): kr300
• Total monthly cost: kr69,960
• Annual cost multiplier: 1.166

Pension contribution requirements

All employers must provide occupational pension (tjenestepensjon) for employees earning over kr75,000 annually. Minimum contribution is 2% of salary between 1G and 12G (kr139,800 to kr1,677,600 in 2026).

Many employers contribute 3-5% to stay competitive. Employees can contribute up to 2% of their salary to the same scheme.

Registration and payment

Register with the Norwegian Tax Administration (Skatteetaten) before hiring your first employee. You'll need:

Payment deadlines:

• Social security and pension contributions: 15th of the following month
• Annual reporting: January 31st
• Late payment penalty: 1% per month plus interest

Workers' compensation insurance requires separate registration with an approved insurer. Rates vary significantly by industry - office work pays around 0.1% while construction can reach 2.8%.

Employees in Norway get 25 days minimum vacation. That's 5 weeks of paid leave to calculate.

Annual leave

Norway requires 25 working days of annual leave for full-time employees. Part-time workers get proportional leave based on their working hours.

Vacation pay calculation gets tricky. Employees earn vacation pay at their regular rate plus a 12% holiday allowance. This means if someone earns NOK 50,000 monthly, their vacation pay is NOK 56,000 for that month.

You can't carry over more than 12 vacation days to the next year. Any unused days beyond 12 must be paid out by March 31st of the following year.

Termination payouts are mandatory. You must pay for all accrued vacation days plus the 12% allowance when someone leaves.

Sick leave

The first day of sick leave is unpaid (waiting day). From day 2-16, you pay 100% of the employee's salary. After day 16, the National Insurance Scheme takes over.

Employees need a medical certificate for sick leave longer than 3 days. For shorter periods, self-certification is enough.

Parental leave

Maternity leave is 15 weeks at 100% pay or 19 weeks at 80% pay. The National Insurance Scheme pays this, not you as the employer.

Paternity leave is 15 weeks that can be shared between parents, plus 2 weeks reserved for the father. Same payment structure - 100% or 80% depending on duration chosen.

You don't pay parental leave directly. NAV handles all payments. Your payroll system needs to track the leave period and coordinate with NAV for benefit calculations.

Public holidays 2026

Date	Holiday	Notes
January 1	New Year's Day	Fixed
April 17	Maundy Thursday	Varies yearly
April 18	Good Friday	Varies yearly
April 20	Easter Sunday	Varies yearly
April 21	Easter Monday	Varies yearly
May 1	Labour Day	Fixed
May 17	Constitution Day	Fixed
May 29	Ascension Day	Varies yearly
June 8	Whit Sunday	Varies yearly
June 9	Whit Monday	Varies yearly
December 25	Christmas Day	Fixed
December 26	Boxing Day	Fixed

Work on public holidays requires double pay unless you give compensatory time off.

Mandatory benefits affecting payroll

Pension contributions are mandatory. You contribute 2% of salary between NOK 63,050 and NOK 1,260,000 annually. Employees can contribute 0-7% of their salary.

Group life insurance is required for most employees. Premiums vary but typically cost 0.3-0.5% of payroll.

Most employers also provide travel insurance and occupational injury insurance, though these don't require payroll deductions - you pay premiums directly to insurers.

Norway tax authorities audit 15% of employers annually. Here's what they check.

What monthly filings do I need to submit?

You must submit the a-melding report by the 5th of each month following the payment period. This single report covers payroll taxes, social security contributions, and employee data for all regulatory bodies.

Submit through Altinn, Norway's digital government portal. The system accepts XML files or manual entry for smaller employers with under 20 employees.

Late filing triggers automatic penalties of kr 1,250 for the first day, then kr 125 per additional day. The penalty cap reaches kr 12,500 per month.

The a-melding includes:

• Employee wage details and worked hours
• Tax withholdings (skatt på lønn)
• Social security contributions (arbeidsgiveravgift)
• Pension contributions
• Holiday pay calculations

What annual reporting must I complete?

Year-end reconciliation is due by January 31, 2027 for the 2026 tax year. This reconciles your monthly a-melding submissions with actual wages paid.

Employee tax statements (skattemelding grunnlag) generate automatically from your a-melding submissions. Employees receive these by March 15, 2027 through their personal Altinn accounts.

Submit your annual employer declaration by May 31, 2027. This confirms total compensation, benefits, and tax withholdings for all employees during 2026.

Keep detailed payroll records for five years. Tax authorities can request documentation during audits, and missing records result in estimated assessments typically 25% higher than actual liability.

What employee documentation is required?

Employment contracts must be in Norwegian and include specific mandatory elements. Contracts in English require certified Norwegian translations for compliance purposes.

Required contract elements:

• Exact job title and duties
• Salary amount and payment frequency
• Working hours and overtime rates
• Holiday entitlement (minimum 25 days)
• Notice periods for termination
• Workplace location

Payslips must show gross salary, all deductions, net pay, and year-to-date totals. Include employer social security contributions and pension contributions for transparency.

Provide payslips within three days of payment. Electronic delivery through secure employee portals meets legal requirements if employees can download and print copies.

What are the penalties for non-compliance?

Violation	Penalty
Late a-melding filing	kr 1,250 first day, kr 125 per additional day
Incorrect tax withholding	20% of underpayment plus interest
Missing payslip elements	kr 2,500 per occurrence
Late pension contributions	1% monthly interest charge
Incomplete employment contracts	kr 15,000 per employee
Record retention violations	kr 25,000 base fine

Interest charges apply at 8.5% annually on unpaid tax obligations. The rate adjusts quarterly based on the Norwegian central bank's policy rate plus 7 percentage points.

Serious violations can result in personal liability for company directors. Tax authorities can pursue individuals for unpaid employment taxes when companies demonstrate willful non-compliance.

Which regulatory bodies oversee payroll?

Norwegian Tax Administration (Skatteetaten) handles all payroll tax matters and conducts compliance audits.

• Website: skatteetaten.no
• Employer helpline: +47 800 80 000
• Altinn portal: altinn.no

Norwegian Labour Inspection Authority (Arbeidstilsynet) enforces employment law compliance including working time regulations and workplace safety.

• Website: arbeidstilsynet.no
• Reporting hotline: +47 73 19 96 00

Financial Supervisory Authority (Finanstilsynet) oversees occupational pension schemes and ensures proper pension contributions.

• Website: finanstilsynet.no
• Pension queries: +47 22 93 98 00

Minimum wage in Norway increased 3.2% in 2026, from kr187.66 to kr193.66 per hour for workers over 20. The adjustment took effect January 1st and applies to all sectors without collective agreements.

National Insurance Contribution Changes - Effective January 1, 2026

Employee national insurance contributions dropped from 4.0% to 3.8% for income up to kr750,000. The employer rate remains unchanged at 14.1% for most businesses, but companies in development zones now pay 10.1% instead of 12.1%.

This means employees take home slightly more each month, while payroll taxes stay steady for most employers. Update your withholding calculations immediately.

Tax Bracket Adjustments - Effective January 1, 2026

Personal allowance increased to kr68,800 (up from kr67,300 in 2025). The step tax thresholds also shifted upward:

• Step 1: 1.9% on income kr208,050 - kr292,850 (previously kr203,550 - kr286,850)
• Step 2: 4.2% on income kr292,851 - kr670,000 (previously kr286,851 - kr656,050)

Pension Contribution Updates - Effective January 1, 2026

Mandatory occupational pension contributions now apply to income up to kr750,000 annually (increased from kr735,000). Employers must contribute minimum 2% of salary between kr68,800 and kr750,000.

Holiday Pay Calculation Change - Effective June 1, 2026

Starting with summer 2026 holidays, the holiday pay percentage increases from 10.2% to 10.5% of previous year's earnings. This affects all holiday pay calculations for vacations taken after June 1st.

Upcoming: Parental Leave Extension - Effective January 1, 2027

Parliament approved extending shared parental leave from 49 to 52 weeks at 100% pay (or 62 weeks at 80% pay). Start planning for increased leave administration and potential staffing impacts.