Understanding Norway's Employer Tax Obligations

When establishing operations in Norway, international employers must navigate a comprehensive social security system. Beyond employee salaries, companies are responsible for significant statutory contributions that form part of Norway's robust welfare framework.

Employer's National Insurance Contributions

Norwegian employers contribute to the National Insurance Scheme through payroll-based contributions ranging from 0% to 14.1%, depending on the municipality where the business is registered. This mandatory contribution covers various compensation elements beyond base salary.

The taxable base for employer contributions includes:

Regular wages, bonuses, commissions, and severance payments
Employer contributions to pension schemes and annuity plans
Non-cash benefits subject to withholding tax
Expense allowances requiring tax withholding
Director fees and similar board remuneration

Regional Contribution Rates

Geographic Zone	Standard Industries	Agriculture & Fisheries
Zone I	14.1%	14.1%
Zone Ia*	14.1%	10.6%
Zone II	10.6%	10.6%
Zone III	6.4%	6.4%
Zone IV	5.1%	5.1%
Zone IVa	7.9%	5.1%
Zone V	0%	0%

Additional Employer Considerations

Since 2023, employers face an additional 5% National Insurance contribution on salaries exceeding NOK 850,000 (2024 threshold). Companies should also budget for optional benefits like health insurance and professional development, which enhance competitive positioning in Norway's talent market.

Norwegian Employee Taxation Framework

Norway's progressive tax system requires employees to contribute between 29.8% and 47.3% of their income, depending on earnings level and residency status.

Employee National Insurance

Employees contribute 7.8% to the National Insurance Scheme, complementing employer payments to fund Norway's comprehensive social security network.

Progressive Income Tax Structure

Norway employs a dual-tier income tax system comprising a flat 22% general income tax and bracket-based surtax ranging from 0% to 17.5%.

Income Bracket	Threshold (NOK)	Surtax Rate
Bracket 1	198,350	1.7%
Bracket 2	279,150	4.0%
Bracket 3	642,950	13.5%
Bracket 4	926,800	16.5%
Bracket 5	1,500,000	17.5%

*Residents of Troms and Finnmark counties benefit from a reduced 11.5% rate in the highest bracket.

Tax Administration Methods

New foreign workers typically enroll in the PAYE (Pay As You Earn) scheme with a flat 25% withholding rate, while experienced professionals follow the standard progressive tax calculation. SailGlobal's case studies demonstrate how proper tax planning can optimize compensation packages for international assignees.

International Tax Considerations

Norway permits foreign tax credits for residents paying taxes abroad, subject to treaty limitations. Non-residents enjoy limited tax obligations, with residency triggered after 183 days in any 12-month period. Proper structuring through providers like SailGlobal can maximize tax efficiency for globally mobile employees.

Norway Employer Tax Guide 2024: Social Security & Payroll Contributions