Employer of Record in Norway

Hiring in Norway for the first time can be overwhelming, especially when navigating unfamiliar employment laws. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. CableMasters's comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Norway in the following three ways:

• Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Norway.
• Partnering with an Employer Of Record. An EOR, like CableMasters, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Norway's labor laws and tax regulations.
• Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Using an Employer of Record in Norway

An Employer of Record (EOR) acts as the legal employer for workers in Norway, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Norway is responsible for:

• Employment Compliance: Ensure all employment contracts comply with Norway's labor laws and regulations, including proper classification of employees.
• Payroll Management: Calculate, process, and distribute employee salaries in accordance with Norway's payroll laws, including deductions for taxes and social security contributions.
• Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
• Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Norway's legal requirements.
• Benefits Administration: Provide mandatory employee benefits as required by Norway's labor laws, such as health insurance, pension contributions, and statutory leave.

Businesses can only operate smoothly in Norway if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Norway below, to avoid any compliance issues.

Employment Contract Requirements

Employers in Norway must furnish new employees with a written employment contract, irrespective of employment type. The contract, which can be in a language other than Norwegian, should encompass essential terms such as:

• Identification of both parties
• Workplace location
• Job description and title
• Start date
• Expected duration for temporary positions
• Holiday entitlement and calculation method
• Notice periods
• Salary, benefits, and payment frequency
• Working hours
• Breaks
• Applicable collective agreements

Onboarding Process

We can help you get a new employee started in Norway quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the CableMasters platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. CableMasters's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Norway

In Norway, normal working hours cannot exceed nine hours per 24 hours, or 40 hours per seven days.

Overtime in Norway

In Norway, any work beyond standard working hours is considered overtime. Employees are entitled to receive an additional 40% of their normal wages for overtime, with the rate doubling for overtime on weekends.

Probation Period in Norway

In Norway, probation periods can last up to 6 months, during which employees can be dismissed with 14 days' notice if their performance, adaptability, or reliability doesn't meet expectations.

As of January 1, 2025, Norway does not have a national minimum wage; rates are determined by collective bargaining agreements across industries and reviewed periodically within those agreements.

Growing your team in Norway is exciting, but it's not without challenges. Local labor laws are often nuanced, and hiring without the right legal structure or processes can lead to misclassification, non-compliance penalties, or disputes. An Employer of Record removes that risk by acting as the legal employer on your behalf, taking full responsibility for compliance, contracts, payroll, and employee benefits.

This gives you the freedom to scale at your own pace, whether you're adding one employee or building out an entire function, without the burden of setting up and managing a local entity. You remain in control of day-to-day responsibilities and performance, while the EOR ensures every hire is legally protected and properly supported. It's a strategic way to expand globally without spreading your internal team too thin or exposing your business to legal liabilities in unfamiliar markets.

Why work with an Employer of Record Solution?

• With decades of experience in global compliance and deep local knowledge, we ensure smooth adherence to local laws and regulations across borders.
• Unmatched coverage for employment across 180 countries.
• An employee portal paired with dedicated, human support.
• Reliable, cost-effective services with no annual commitments.

Employers in Norway must comply with key payroll obligations, including income tax withholding at a general rate of 22% and social security contributions, where employer rates range up to 14.1% and employee rates vary between 5.1% and 8.2%. These contributions fund essential benefits such as pensions, healthcare, and unemployment support. Failure to meet payroll tax deadlines can result in penalties and interest charges.

To ensure compliance, employers must accurately calculate, withhold, and remit payroll taxes on time. Utilizing payroll management software can help businesses streamline payroll processing, reduce administrative burdens, and maintain compliance with Norwegian tax regulations.

How an EOR Helps You Run Payroll in Norway

Employees expect to be paid accurately, on time, and in full compliance with local standards. When you're hiring in Norway, providing a smooth payroll experience is critical to retention and trust. An Employer of Record ensures that employees receive what they're owed, without errors, delays, or confusion about taxes or benefits.

Key Ways an EOR Supports Payroll in Norway:

• Reliable Salary Payments: Ensures employees are paid promptly in local currency.
• Clear Payslips & Documentation: Provides employees with compliant, understandable records.
• Correct Benefits & Contributions: Delivers legally mandated contributions and any changes in compensation, like bonuses.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Boosts Employee Confidence: Builds trust with compliant, consistent payroll operations.

In Norway, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, paying fees, and meeting specific eligibility criteria. The key visa types include the Skilled Worker Visa, Seasonal Worker Visa, Self-Employed Person Visa, and Job Seeker Visa. Employers must ensure compliance with local labor regulations when sponsoring foreign employees.

Mandatory Leave Entitlement in Norway

The annual leave entitlement in Norway is 25 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Norway

Norway celebrates the following national holidays:

Paid Time Off in Norway

The Annual Holidays Act of 1988 in Norway mandates that employees receive 25 days of paid leave each year after the qualifying year.

Maternity Leave In Norway

In Norway, mothers are entitled to up to 12 weeks of maternity leave before birth and 6 weeks after birth, with coverage provided by Social Security.

Paternity Leave In Norway

In Norway, fathers are entitled to two weeks of unpaid leave to assist the mother after childbirth, with no statutory requirement for paid leave. This leave is also available to adoptive parents of children up to 15 years old.

Sick Leave In Norway

In Norway, sickness benefits are covered by the employer for the initial 16 calendar days, after which they are provided by the National Insurance Scheme.

Parental Leave In Norway

In Norway, each parent is entitled to up to one year of parental leave per childbirth, to be taken immediately after the child's first year. They can choose between 49 weeks at 100% pay or 59 weeks at 80% pay.

In Norway, failing to provide the correct employee benefits can have serious consequences. Mistakes in benefits administration may result in fines and harm your reputation as an employer. An Employer of Record ensures statutory benefits and leave are handled correctly, every time, and provides comprehensive options for extra perks to reward your team.

Beyond just avoiding legal issues, a well-managed benefits program builds trust with your employees. An EOR ensures benefits are set up quickly during onboarding, updated when employee status changes, and fully compliant with national regulations. They also manage communication with employees, so there's no confusion around what's offered and how to access it. This combination of legal compliance and positive employee experience is hard to replicate without local infrastructure. With an EOR, you can offer peace of mind to your team (and to yourself) knowing that your benefits program in Norway is running as it should.

Termination Process in Norway

Terminations in Norway can be complex. There is no at-will termination in Norway for employers outside the probation period, and termination must be done for just cause. Compliant terminations include:

• Voluntary resignation by the employee
• Termination without notice for gross breaches
• Justified termination with notice based on objective circumstances
• Mutual agreement
• Termination during probation due to lack of suitability or proficiency
• Termination by contract expiration

Notice Period in Norway

The minimum notice period is one month but the notice period increases based on length of employment as follows:

• Minimum notice period: 1 month
• Up to 5 years: 1 month
• Up to 10 years: 2 months
• Beyond 10 years under 50: minimum 3 months
• Beyond 10 years aged 50 - 54: minimum 4 months
• Beyond 10 years aged 55 - 59: minimum 5 months
• Beyond 10 years aged 60 and above: minimum 6 months

Severance in Norway

In Norway, there are no statutory requirements for severance payments. During the notice period, the employee is still entitled to salary payments and additional contractual benefits in accordance with terms of employment.