Employer of Record in Norway

Key information about Norway

Officially named the Kingdom of Norway, the country operates as a constitutional monarchy with a parliamentary system of representative governance. The monarchy holds a ceremonial and representative role, contributing to Norway's status as one of the world's most developed democracies. According to the World Bank, Norway boasts the fourth-highest per-capita income globally.

Encompassing 385,000 square kilometers, Norway occupies the western and northern regions of Scandinavia, featuring the European mainland's northernmost point. It shares borders with Sweden, Finland, and Russia, with a predominantly mountainous terrain. The coastline, renowned for its fjords and numerous small islands, borders the sea to the north, west, and south. The country's population is approximately 5.3 million.

Norway's south and west regions face Atlantic storms, leading to a wetter climate with milder winters compared to the northern and eastern areas. The eastern lowland areas, including Oslo, experience lower rainfall, warm summers, and cold winters with snow.

Guided by egalitarian principles, Norway upholds a praised welfare model, reflected in its high rankings on global indices such as World Happiness and Public Integrity. The nation also maintains low crime levels. The government holds significant ownership in crucial industries, with the petroleum sector contributing approximately 25% to the GDP.

In 2017, the Church of Norway gained independence from the state. While around 70% of Norwegians are affiliated with the Christian Church of Norway, regular attendance is only at 2%. Nearly 30% of the population identifies with no religious beliefs, and the rest are predominantly associated with various Christian denominations. Islam, at 4%, represents the largest non-Christian religion.

Norwegian and Sámi are the official languages, with Norwegian being linguistically akin to Swedish and Danish. The Sámi people in the north speak various Sámi languages, contributing to the linguistic diversity of the country.

Essential insights for hiring in Norway

When considering the process of hiring employees in Norway, it's important to take note of several key factors. The official currency is the Norwegian krone (NOK), and the standard working hours typically range between 37.5 to 40 hours per week. The country observes 12 public/bank holidays throughout the year.

Oslo serves as the capital, and the primary language is Norwegian. Notably, about 15.8% of the population engages in remote work. Unlike some countries, Norway does not have a statutory minimum hourly salary, providing flexibility in wage negotiations. Understanding these aspects is crucial for businesses venturing into employing individuals in Norway, ensuring compliance with local practices and facilitating smooth operations within the country's work environment.

What you need to know before hiring in Norway

Norwegian employment laws are applicable to both foreign nationals and citizens, with some distinctions in their entitlements. It is important to comprehend these differences and other facets of employment regulations in Norway.

While Norwegian laws may seem intricate and perplexing, they share similarities with employment regulations in many other countries. To alleviate challenges for companies establishing a local office, it is recommended to collaborate with a local payroll provider well-versed in Norway's labor laws for both local and foreign workers.

Establishing a business presence in Norway

Before commencing operations in Norway, it is imperative to consider the following factors:

Business considerations
Various factors should be thoroughly assessed prior to establishing a business in Norway. These include the type of business and industry, existing trade relationships and agreements, as well as the nationality of individuals and the headquarters.

Location
Different cities in Norway operate under distinct laws, have varying expenses, and offer different resources. Seeking guidance from a legal advisor is essential to navigate these regional differences effectively.

Language
Norwegian is the predominant language, spoken by 95% of the population, with English following closely at 90%.

Norway legally recognizes different business forms based on the organization's size and minimum share capital:

1. Private Limited Liability Company - Aksjeselskap (AS)
- Commonly used for small and medium-sized businesses.
- Larger companies employ this entity to establish a subsidiary in Norway.
- Requires a minimum of two directors, including a European/Norwegian, with a mandatory minimum paid capital of NOK 30,000.

2. Norwegian Public Limited Company (ASA)
- Must be listed on the stock market, with major decisions made by shareholders during the general meeting.

3. Sole Proprietorship
- An incorporation where an individual assumes liability for the business.
- No separate laws govern sole proprietorships.

4. Partnership
- Governed by the Partnership Act 1985, involving a commercial business established jointly by two or more partners.
- One of the partners has unlimited personal liability for the business's total obligations.

5. Branch
- A business establishment by a foreign company, managed locally, and employing personnel from Norway.

Legal safeguards in norwegian employment law

The regulatory landscape of employment in Norway is predominantly shaped by both national legislation and collective agreements. Norway's alignment with the EEA-Agreement with the EU means the integration of EU labor regulations and directives into its own legal framework. The primary sources dictating employment relations include:

The Constitution of 1814
Establishes fundamental principles and rights, providing a foundational framework for employment-related matters.

The Working Environment Act of 2005
Serves as a comprehensive legislation outlining the rights and responsibilities of employers and employees, emphasizing a conducive work environment.

The State Employee Act of 2017 and Other National Legislation
Specific regulations governing public sector employment, contributing to the broader legal landscape.

Case law
Legal decisions from relevant cases play a role in interpreting and applying employment laws, setting precedents for future disputes.

Collective agreements
Agreements negotiated between employers and trade unions, outlining terms and conditions of employment for specific industries or sectors.

Individual employment contracts
Contracts between individual employers and employees, specifying terms such as job responsibilities, working hours, and compensation.

Types of visas in Norway

Work permit (skilled labor)
To obtain a Norway work visa, applicants must meet the following requirements:
- Present a valid passport along with a copy of all filled pages.
- Provide a cover letter from the Application portal or a signed application form.
- Include two recent passport size photos with a white background.
- Submit proof of residence in Norway.
- Complete the Norwegian Immigration Authorities (UDI) Offer of employment form.
- Furnish documents related to educational background and work experience.
- Include the applicant's CV.
- Fill out and sign UDI’s checklist.

Intra-company transfer
This visa is designed for employees of international companies assigned to a Norwegian branch. Requirements include:
- Completion of a vocational training program lasting at least three years at the upper secondary school level.
- Possession of education or a degree from a university/university college.
- Proof of special qualifications acquired through extensive work experience, equivalent to vocational training.
- Processing times vary based on the application type and channel.

Business visa (Schengen visa type C)
Norway promotes free trade and foreign investments, providing a business-friendly environment. The Schengen Visa, designed for business and family visits with a return to the country of residence, is valid for a maximum of 90 days within a 180-day period, with no provision for extension after entry.

These visa categories serve distinct purposes, and adherence to the specified requirements is crucial for a successful application. It is essential to note that processing times may differ, and applicants should select the appropriate channel for submission based on their specific circumstances.

Work permits in Norway

Foreigners seeking work permits in Norway can entrust the process to Skuad's local partner within the country. Serving as an Employer of Record (EOR) in Norway, Skuad handles all the necessary requirements and obligations related to employment. Through Skuad's HR platform, client companies have the capability to oversee their employees' daily activities and operations.

Norwegian guidelines on probation/trial period

In Norway, an employment contract has the flexibility to incorporate a trial period, lasting a maximum of six months, as specified in the contract. This trial period, clearly outlined in the employment agreement, allows for a somewhat lower threshold for legal dismissal with notice, particularly concerning circumstances related to the employee. Grounds for dismissal during this period may include the employee's lack of suitability for the work or a deficiency in proficiency or reliability. These guidelines provide a framework for managing trial periods in employment contracts, offering employers and employees clarity on the terms and conditions associated with this initial phase of employment.

Salaries in Norway

Norway does not have a government-mandated minimum wage. Employers have the flexibility to negotiate wages with both unions and individuals, taking into account the specific roles and industries involved. Despite the absence of a minimum wage, Norway boasts one of the highest average wages globally, standing at approximately 640,000 NOK, which is equivalent to over $75,000.

The average salary in Oslo, Norway, is approximately 31,000 NOK per month after taxes. This translates to around 3,600 USD per month, marking one of the highest average salaries among European capitals.

Payroll in Norway

Setting up payroll and navigating taxation in Norway requires a thorough understanding of the regulations, which can vary across different categories. A crucial initial consideration is whether you intend to employ foreign professionals or locals.

For foreign companies, adherence to local tax laws is imperative, encompassing aspects such as income tax, business tax, withholding tax, employee compensation insurance, social security costs, and more. There are two primary approaches to accomplish this:

a) Establishing an in-house team dedicated to managing payroll in Norway.
b) Opting for the services of payroll outsourcing in Norway. This option not only simplifies the management process but also ensures comprehensive compliance with Norwegian laws. Engaging a professional company for payroll outsourcing can prove to be beneficial in navigating the intricacies of Norway's regulatory landscape and ensuring accuracy and adherence to all relevant guidelines.

Employment contract in Norway

In Norway, the foundation of all employment relationships is a written employment contract, a mandatory agreement between the employer and the employee. The primary norm is fixed employment, ensuring stability in the working arrangement. However, certain regulations govern temporary employment engagements:

1. Fixed employment rule:
- The default arrangement is fixed employment, providing a stable framework for the employment relationship.
2. Temporary employment engagements:
- Temporary employment engagements are subject to specific limitations. They should not exceed 15% of the total number of employees in the undertaking.
- Exceptions allow temporary engagements even if they surpass the 15% threshold, provided at least one employee in the company is involved.

In compliance with Norway's Working Environment Act, an employment contract must be documented in writing and include, at a minimum, the following essential points:
1. Identification of each party involved in the employment agreement.
2. Specification of the work location.
3. Description of the work or details regarding the employee's title, position, or category.
4. Commencement date of the employment.
5. An estimated duration of employment for temporary contracts.
6. Grounds justifying the temporary status for temporary contracts.
7. Presence or absence of a trial period, if applicable.
8. Total number of paid vacation days and the corresponding rate of pay for those days.
9. Notice periods for both the employer and the employee.
10. Salary details, including the payment method, timing, and any additional supplements or remunerations not covered in the base pay.
11. Stipulation of working hours.
12. Duration and specifics of breaks from work.
13. Reference to any applicable collective agreement.

By including these elements in the employment contract, Norway ensures clarity and transparency in the employment relationship, safeguarding the rights and expectations of both employers and employees. This legal framework supports fair and equitable working conditions in accordance with the Working Environment Act.

Contractors vs. full-time employees

The classification of contractors and full-time employees is determined by specific criteria. Full-time employees have a formal employment relationship with fixed working hours, a set monthly compensation, employer-directed work, and a notice period. To hire full-time employees, the company must qualify as a Norwegian employer. Taxes are deducted by the employer from the employee's paycheck, with the employee typically facing a 14.1% tax on their salary. In summary, the key distinction lies in the nature of the working relationship. Full-time employees have a structured employment arrangement, whereas contractors operate more independently, taking on projects at their discretion and assuming more risk in return for flexibility. The tax implications also differ, with full-time employees subject to a 14.1% tax on their salary, whereas contractors face an 18% tax on their income. Employers should carefully consider these factors when deciding between hiring full-time employees or engaging contractors for specific projects.

Working hours regulations in Norway

In Norway, the regulations governing working hours stipulate that, in general, the maximum normal working hours should not exceed nine hours within any twenty-four-hour period and should not surpass forty hours in a seven-day period. Certain groups, such as shift workers, may have reduced normal working hours for a seven-day period. An agreement between the employer and the employee can allow for the calculation of maximum normal working hours as an average over a period of up to 52 weeks. However, this calculation is restricted to 10 ordinary hours of work per 24 hours and 48 ordinary hours per seven days. Alternative arrangements can be established through agreement between the employer and employees' elected representatives via a collective pay agreement.

The Working Environment Act (WEA) also grants employees the right to flexible working hours, provided such flexibility does not cause significant inconvenience to the employer. Notably, these rules do not apply to employees in senior positions or those with particularly independent roles.

Upon reaching the age of 62, employees have the entitlement to reduced working hours, provided the reduction does not cause significant inconvenience to the business. This provision also applies if an employee seeks reduced working hours due to health, social, or serious welfare reasons. These regulations contribute to creating a flexible and accommodating work environment in Norway.

Norwegian regulations on overtime

In Norway, overtime work and additional hours are not intended to be established as part of a regular system and should only occur in extraordinary cases. When overtime is required, it is subject to additional compensation. Specifically, overtime work entails a supplementary payment of at least 40% extra per hour.

Overtime is permissible only in situations of exceptional and time-limited necessity. The following limitations apply: overtime cannot exceed 10 hours in a seven-day period, 25 hours in four consecutive weeks, and 200 hours within a 52-week period. Generally, total working hours should not surpass 13 hours in a 24-hour period and 48 hours in a seven-day period. Extension of these limits is possible only through an agreement between the employer and the employees' elected representatives in enterprises bound by a collective pay agreement. It's important to note that these rules do not apply to employees in leadership roles or those with particularly independent positions. These regulations ensure that overtime is used judiciously and that employees are appropriately compensated for their additional work.

Leave

When it comes to leave policies in Norway, there are various categories to consider, each designed to support employees in different life situations.

Employees in Norway enjoy a generous annual leave entitlement, providing a balance between work and personal time. These regulations aim to ensure that employees have sufficient time for rest and recreation, fostering a healthy work-life balance. The specific provisions for extended leave for older employees and the designated summer leave period contribute to the overall well-being of the workforce in Norway.

In Norway, employees have an entitlement to a maximum of 52 weeks of sick leave.

Days 1 to 16:
- Sick pay is directly paid by the employer.
- Rate: 100% of the employee’s wage.

Days 17 to 52:
- Sick leave is covered by a social security illness benefit.
- Benefit cap: Capped at six times the National Insurance base value of 99,858 NOK.

The sickness benefit cap for days 17 to 52 is set at 599,148 NOK.

This sick leave policy ensures that employees in Norway receive financial support during periods of illness. The combination of employer-paid sick leave for the initial days and subsequent coverage by social security illness benefits aims to provide a comprehensive safety net for individuals facing health challenges.

For new fathers, there is a provision for paid paternity leave, allowing for a two-week period of time off with compensation. In the event of illness, employees can avail themselves of paid sick leave for up to 52 weeks, provided they provide a medical certificate.

Norwegian employees also benefit from comprehensive parental leave policies. This includes 12 months of paid parental leave, followed by an additional 12 months of unpaid leave, offering flexibility to individuals as they navigate the demands of parenthood.

Expecting mothers are entitled to paid maternity leave for a duration of 12 months and an additional 15 weeks, ensuring that they have the necessary time and support during the crucial stages of pregnancy and postpartum.

These leave policies reflect Norway's commitment to supporting the work-life balance of its citizens, providing necessary provisions for various life events and circumstances. Understanding these entitlements is crucial for both employers and employees to ensure a harmonious and supportive work environment.

Public holidays in Norway

- New Year’s Day: January 1
- Maundy Thursday: April 14
- Good Friday: April 15
- Easter: April 17-18
- Labour Day: May 1
- Constitution Day: May 17
- Ascension Day: May 26
- Whit Sunday: June 5
- Whit Monday: June 6
- Christmas: December 25-26

These public holidays in Norway mark significant occasions, religious events, and national celebrations throughout the year. It's important for employers and employees to be aware of these dates, as they often influence work schedules and business operations.

Statutory benefits in Norway

Norwegian employees are entitled to various compulsory benefits that constitute an integral aspect of the country's employment structure. These encompass: 1. Healthcare coverage
Workers in Norway enjoy access to extensive medical coverage, guaranteeing that they can receive essential medical treatment without bearing the entire financial burden.

2. Additional pension provisions
Supplementary pension benefits are a mandated element of Norway's employment landscape. They offer employees financial assistance beyond the basic pension, contributing to their long-term financial stability.

3. Occupational injury insurance
Norwegian labor laws stipulate mandatory work injury insurance, providing protection to employees in the event of injuries sustained during their employment. This coverage is designed to address medical expenses and potential income loss resulting from work-related injuries.

4. Compulsory medical assessments
As part of the employment process, employees may undergo mandatory medical examinations. These assessments aim to ensure the well-being of employees and may be conducted periodically to evaluate their fitness for specific job roles.

These compulsory benefits underscore Norway's dedication to safeguarding the welfare and rights of its workforce, fostering a comprehensive and supportive work environment.

Voluntary benefits in Norway

1. Remote work opportunities
Numerous employers in Norway provide the option of working remotely, allowing employees to balance their professional responsibilities with personal needs.

2. Life insurance
Although not obligatory, life insurance is a prevalent voluntary benefit that employers may offer to enhance financial security for employees and their families.

3. Private health insurance
Certain companies offer private health insurance plans as an additional benefit, granting employees access to specialized healthcare services and coverage beyond the public system.

4. Stock options
Stock options are a non-mandatory incentive that companies may provide, affording employees the chance to purchase company shares at a predetermined price, potentially benefiting from the company's performance.

5. Free meals
Certain workplaces offer complimentary meals or subsidized dining options as an extra perk, contributing to a positive work environment.

6. Paid relocation
Companies may provide financial support or cover relocation expenses for employees who need to move for work-related reasons, facilitating a smoother transition.

7. Additional compensation during parental leave
Some employers surpass statutory requirements by offering additional financial support to employees during parental leave, recognizing the importance of work-life balance.

8. Gym memberships
Providing gym memberships is a common non-mandatory benefit, promoting employee well-being and a healthy lifestyle.

9. Flexible working hours
Flexible work hours give employees the freedom to adjust their schedules, promoting better work-life integration.

These non-mandatory benefits underscore employers' commitment in Norway to create a positive and appealing workplace, fostering employee satisfaction and well-being.

Norwegian taxation

When it comes to taxes in Norway, both employers and employees need to be aware of the specific rates and structures in place. Employees, on the other hand, face tax rates ranging from 30% to 47.4%, with an additional 8% for social security. The income tax system follows a progressive structure with a base rate of 22%, along with the following supplements based on gross income:

- For incomes ranging from NOK 0 to 190,349, there is no additional progressive tax.
- In the bracket of NOK 190,350 to 267,899, an additional progressive tax of 1.7% is applied.
- Incomes falling between NOK 267,900 and 643,799 incur a 4% additional progressive tax.
- The bracket of NOK 643,800 to 969,199 is subject to a 13.4% additional progressive tax.
- Incomes ranging from NOK 969,200 to 1,999,999 face a 16.4% additional progressive tax.
- For incomes exceeding NOK 2,000,000, an additional progressive tax of 17.4% is applicable.

Understanding these tax components is essential for both employers and employees to ensure compliance with the Norwegian tax system and to make informed financial decisions.

Employee rights and protections in Norway

Norwegian employees enjoy a comprehensive set of rights and protections designed to foster a fair and secure work environment.

1. Written employment contract
Employees in Norway are entitled to a written employment contract that outlines key terms and conditions, promoting transparency and clarity in the employment relationship.

2. Payslip
Employers are obligated to provide detailed payslips, documenting earnings, deductions, and other pertinent financial information, ensuring transparency in the payment process.

3. Workload revision meeting
In certain situations, employees have the right to request a workload revision meeting, allowing for discussions and potential adjustments to work assignments and responsibilities.

4. Compensation during non-compete period
Employees subject to non-compete clauses have the right to receive compensation during the specified period when they are restricted from engaging in competitive activities.

5. Whistleblower protection
Whistleblowers are legally protected in Norway, safeguarding employees who report wrongdoing or illegal activities within their organizations from retaliation.

6. Protection from discrimination, harassment, and dismissal of some categories of employees
Norwegian law prohibits discrimination and harassment, and certain categories of employees, such as pregnant women and those on parental leave, are protected from dismissal in specific circumstances.

7. Working environment committee
Mandatory in workplaces with a certain number of employees, the working environment committee focuses on matters related to the work environment, health, and safety.

8. Overtime pay
Employees working beyond regular hours are entitled to overtime pay, ensuring fair compensation for additional work.

9. Unemployment allowance
In the event of unemployment, eligible individuals are entitled to receive unemployment benefits, providing financial support during periods of job loss.

These robust rights and protections underscore Norway's commitment to ensuring the well-being and equitable treatment of its workforce, fostering a work environment that values transparency, equity, and employee welfare.

Job search platforms in Norway

In Norway, employers are required to conduct a mandatory background check on potential employees before hiring them. This check encompasses details such as previous work history, education, and business interests. According to employment contract laws in Norway, employers must draft a written contract for the recruited employee within one month from the date of hire. These written employment contracts are obligated to include essential information like job description, compensation, benefits, working hours, overtime benefits, and a termination clause.

For those seeking job opportunities in Norway, several platforms facilitate the search:
1. The Arbeidsplassen website is a valuable resource for job listings, although it is available only in the Norwegian language.
2. Eures stands out as a top website for job searches in various languages.
3. Gulesider is another platform that displays job listings, potentially featuring opportunities not found on other websites.
4. Finn is a widely used website where most jobs are listed, though it is primarily in Norwegian.

Prospective employees and job seekers can explore these platforms based on language preferences and specific job requirements to enhance their chances of finding suitable employment in Norway.

Terminating employees

Ending employment in Norway involves navigating through a set of stringent laws that contribute to a more bureaucratic process compared to many other countries. There are specific conditions under which an employer can compliantly terminate an employee: In situations where there is a temporary need to reduce the workforce, employers have the option to implement temporary layoffs. It's important to note that in the event of a dispute regarding termination, an employee may continue in their position until the legal resolution is determined by the courts.

While Norwegian law does not explicitly mandate severance pay, it is a customary practice to include it as part of a termination agreement. This reflects a commitment to fairness and recognition of the employee's contributions even in the termination process. Employers and employees should be aware of these legal intricacies to ensure a smooth and legally compliant end to the employment relationship in Norway.

In the event of the termination of the employment contract between the employer and the employee, it is required that either party communicates the decision in writing to the other party. The duration of the notice period is contingent upon the length of the employment and is outlined as follows:
- Probationary period: A notice period of 14 days is applicable.
- Less than five years of employment: A notice period of 1 month is required.
- Between five and ten years of employment: A notice period of 2 months is necessary.
- Ten years and above: For employees under the age of 50, a notice period of three months is mandatory. However, for employees over the age of 60, a notice period of six months is stipulated.

What is EOR?

EOR stands for Employee of Record, and is a form of employment characterized by the fact that your foreign employees are, in fact, subordinated to another entity. In practice, this means that creating a legal structure in a new market is not necessary. You only need to use the EOR service to have a legally employed employee in another country. By opting for EOR you do not have to worry about:
- administrative tasks;
- payroll management;
- taxes;
- employee benefits (including insurance).

Entering unknown territory is worth reducing unnecessary costs and time, which can be spent on actual business development instead of building and managing a staff. You can reduce the risk of operating in the local market by entrusting an EOR entity with matters relating to regulatory and legal requirements in terms of employment, as well as immigration and payroll. You make the decisions on jobs, we just implement your orders. In addition, the EOR model is extremely beneficial from an operational, financial and strategic viewpoint. It is good to consider this solution, especially in the initial phase of presence on the Norwegian market.

How does PEO differ from EOR?

A Professional Employer Organization (PEO) is an entity that works in collaboration with your company to jointly oversee employee-related responsibilities and payroll. Unlike Employer of Record (EOR) services, where the outsourced company assumes complete responsibility for compliance management, a PEO operates in partnership with your business.

Distinguishing Between Employer of Record (EOR) and Global Employer of Record (GEOR)

Understanding the distinctions between a conventional Employer of Record (EOR) and a Global Employer of Record (GEOR) is crucial for achieving success in international business.

Employer of Record (EOR): Functions within a specific jurisdiction, assisting businesses in the recruitment and management of employees in that particular country. This solution is advantageous for companies seeking to expand either domestically or into a single foreign market.

Global Employer of Record (GEOR): Offers the same services across multiple countries. A GEOR not only facilitates the hiring and management of an international workforce but also simplifies the process of entering new markets without the necessity of establishing a local legal entity in each jurisdiction. This ensures a smooth entry and uncomplicated exit from markets that may prove less viable for your business.

Empowering your business with Uniqorm's expertise in Norway

Time, costs, and knowledge are the foundations for proper functioning in a new business space. Unfamiliarity with current legal norms makes your company vulnerable to losses, which is why Uniqorm wants to serve you with its experience in global expansion, providing favourable conditions to increase revenues.

We offer a service for employment and settlement of wages and taxes for your employees in Norway. Benefits administration, regulatory compliance, taxation, and HR and payroll issues should not stop you from growing your business. Uniqorm will take care of it all, while you can devote yourself to other important matters.

They trust us:
HR organization is much easier with our help.

Receive employees or settle accounts with employees on B2B contracts in Norway express and without unnecessary problems. Our international structure and experience help you:

• save you money;
• avoid wasting time;
• reduce business risks.

Give your employees what they need: payment in local currency, employee benefits, medical care and pension insurance. Order the service now We know that growing your business requires a lot of attention, that is why we offer our clients a service that allows them to avoid wasting time, unnecessary costs and lowering the business risk.

Want to know more?
Our experts are at your disposal. Make an appointment via Zoom:

Frequently asked questions

1. What are my options if I want to hire a worker in Norway?
There are four main methods, but not all are practical or legal. These include HQ country employment, independent contractor agreements, direct local employer setup, and employment through a local entity. Each method has its drawbacks, such as legal compliance issues or high costs.

2. How long does it take to set up a company in Norway?
Setting up a local company is relatively straightforward, but complexities arise with monthly payroll, tax filings, and compliance with changing rules. The process involves various post-setup obligations that can be time-consuming.

3. Can I employ people as independent contractors in Norway?
While some hire remote workers as independent contractors, it is not recommended due to potential breaches of employment laws. Treating full-time workers as independent contractors may lead to legal issues and denies individuals protections under local employment laws.

4. What does HR compliance mean in Norway, and why does it matter?
HR compliance involves adhering to laws and regulations related to employment and work practices in Norway. Compliance is crucial for running a business correctly, minimizing liabilities, and safeguarding employee rights.

5. How much does it cost to employ someone in Norway?
In addition to the gross salary, employers must make social security and supplementary pension contributions based on each employee's total taxable remuneration. Online calculators can provide exact percentages and amounts.

6. What does Employer of Record mean in Norway?
While the traditional Employer of Record model doesn't exist, an organization can establish a company specifically for employing workers, handling pre-employment requirements, compliance with labor laws, and other tasks.

7. Who is responsible for filing and paying employees' taxes and social insurance contributions in Norway if employing through a local legal employer?
As the Employer of Record in Norway, Boundless handles filing taxes and contributions related to compliant employment on behalf of customers, including payroll processing and issuing payslips.

8. Do employees get all their rights and benefits when employed through a separate employing entity in Norway?
Employees employed through an Employer of Record receive full employment rights and benefits specified in Norwegian employment law, including compliant contracts, statutory leaves, parental benefits, and entitlements.

9. What taxes do I need to pay in Norway?
Both employers and employees in Norway are required to pay taxes. Employers contribute to social security and pensions, while employees contribute to social security and pay income tax. Online salary breakdown calculators can provide a clear overview of these taxes based on planned salaries.