HR Software for Norway
Leave Policy
Maternity Leave
Pregnant employees who have worked at least 6 months out of the last 10 months are entitled to paid maternity leave. The number of combined parental leave days for vacation depends on the option chosen by the employee:
- 49 weeks at 100% of the average salary (up to 6G (6G corresponds to an annual salary of NOK 638,394 (as of May 2021); or
- 59 weeks at 80% of average salary
The NAV (Norwegian Labor and Welfare Administration) is responsible for paying this allowance.
For the entire duration of the leave, the mother is entitled to a maternal quota:
- 15 weeks (if 49 weeks is chosen) at 100% of average salary
- 19 weeks (if 59 weeks was chosen) at 80% of average salary
The first 5 weeks must be taken immediately after birth, the remaining weeks can be taken immediately after or saved for later.
The employee can extend the vacation for 1 year without pay.
You can use the leave module in IceHrm to manage maternity leave in Norway.
Paternity Leave
Employees who have worked at least 6 months in the last 10 months are entitled to paid paternity leave. The number of combined parental leave days for vacation depends on the option chosen by the employee:
- 49 weeks at 100% of the average salary (up to 6G (6G corresponds to an annual salary of NOK 638,394 (as of May 2021); or
- 59 weeks at 80% of average salary
The NAV (Norwegian Labor and Welfare Administration) is responsible for paying this allowance.
The father is entitled to a paternity quota of the entire duration of the leave:
- 15 weeks (if 49 weeks is chosen) at 100% of average salary
- 19 weeks (if 59 weeks is chosen) at 80% of average salary
Fathers can take advantage of the parental leave quota from the 7th week after the birth or wait until a later date. The quota can be used continuously, divided or combined with partial work.
The employee can extend the vacation for 1 year without pay.
Parental Leave
Parents who have worked at least 6 months in the last 10 months are entitled to a combined leave of 49 or 59 weeks. The number of vacation days depends on the option chosen by the employee:
- 49 weeks at 100% of the average salary (up to 6G (6G corresponds to an annual salary of NOK 638,394 as of May 2021); or
- 59 weeks at 80% of average salary
The NAV (Norwegian Labor and Welfare Administration) is responsible for this compensation. This leave is divided into the mothers’ quota, the fathers’ quota and the joint leave (see sections below).
After the employees have claimed 15 weeks or 19 weeks of the maternity and paternity benefits, they are entitled to a shared/shared period, the shared parental allowance. This can be shared equally or taken entirely by the mother or father. However, if the father/co-parent wants to take advantage of the time together, the mother must be employed, i.e. H. work, complete training or something similar.
Sick Leave
There is no maximum number of days for sick leave. Employees can receive sick pay for up to 1 year. Depending on the duration, this vacation is paid at different rates and by different payers:
Pay & Tax
Minimum Wage Requirements
There is no general minimum wage in Norway. There are specific minimum wages that have been introduced in certain industries.
Individual Income Tax
The individual income tax rate is 22%. Income tax is calculated at a flat rate.
Payroll Cost
The cost to the employer is generally estimated at 18% of the employee’s salary.
- Public pension fund – 4%
Employer’s Social Security (ER SS) – 14.1%
Please note:
The maximum contribution to the public pension fund for 2023 is NOK 1,423,440. This cap is equal to 12 times the G amount (Grunnbeløp) and is set annually by the Norwegian government.
Employer’s social security contributions (ER SS) are calculated based on the employee’s pension insurance and total monthly remuneration, including salary, bonuses, commissions, allowances, etc.
Conditional costs:
Additional Social Security – 5% of the sum of the employee’s pension plan and total monthly compensation, including salary, bonuses, commissions, allowances, etc.
The additional social security contribution only applies to employees with an annual salary of more than NOK 850,000, and only if the employee’s salary has reached this amount.
Annual costs:
- Holiday pay
Employees up to 59 years of age: 12% of total annual compensation, including salary, bonuses, commissions, allowances, etc. Employees 60 years or older: 14.3% of total annual compensation, including salary, bonuses, commissions, allowances, etc. - Employer’s social insurance (ER SS) on holiday pay: 14.1% of holiday pay
Overtime Pay & Maximum Hours
Pay for overtime is mandatory. Hours worked outside of normal working hours are considered overtime. Employees can work a maximum of 10 hours of overtime per week and 25 hours every 4 weeks. Employees receive compensation for additional hours:
- 140% of salary per hour of overtime on weekdays
- 200% of salary per overtime during night shifts and weekends
The standard working hours are 7.5 hours per day and 37.5 hours per week. The normal working week lasts from Monday to Friday.
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.
Terminations in Norway can be complex. Outside the probationary period, the employer in Norway cannot terminate at will and the termination must be for a valid reason.
Compliant terminations are:
- Voluntary by the employee
- By mutual agreement
- Termination without notice is only permissible if the employee is guilty of a gross breach of duty or other serious breaches of the employment contract
- Dismissal during the probationary period due to lack of suitability for the work or lack of performance or reliability
- Termination without notice must be objectively justified by operational reasons on the part of the employer or employee.
- When the contract expires
Notice Period
The minimum notice period is one month, but the notice period increases as the length of employment increases.
Trial period – 14 days notice period
- Up to 5 years of employment – 2 months notice period
- Up to 10 years of employment – 3 months notice period
- From 10 years of employment, the notice period is:
At least 4 months after the employee is less than 50 years old
At least 5 months after the employee turns 55
At least 6 months after the employee turns 60.
For employees after 10 years of employment, a notice period of 3 months applies.
Severance for Employees
There are no legal requirements for severance payments in Norway. During the notice period, the employee continues to be entitled to salary payments and additional contractual benefits in accordance with the terms and conditions of employment.
Statutory Time Off
Paid Time Off
Full-time employees are entitled to 25 days of paid time off (PTO) per year. PTO is credited monthly at 2.08 days per month.
Part-time employees are not eligible for PTO. You are allowed to take time off, but you do not receive any salary for it. They will receive holiday pay (at either a rate of 10.2% or 12% depending on the company, with 10.2% being the legal minimum) at the end of the year after they have earned it.
Public Holidays
There are 12 national holidays in Norway. National holidays include:
- New Year’s Day
- Maundy Thursday
- Good Friday
- Easter Sunday
- Easter Monday
- Labor Day
- Constitution Day
- Ascension Day
- Pentecost
- Whit Monday
- Christmas Day
- St Stephens’ Day
Onboarding
Onboarding
Onboarding takes 2 business days after the customer signs the SOW.
Additional Info
Employment Contract Details
The contracts must be written in Norwegian or English and can be bilingual. They must be in writing and signed by both parties.
A contract must contain the following:
- Name of the employee and the employer
- Workplace Job descrption
- First day of employment
- Length of employment
- Probation period
- Holiday entitlement and remuneration
- Salary and other allowances
- Working hours
- Duration of breaks
- Special working time regulations in accordance with the provisions on short-time work, flexible working hours, etc.
- Conditions for termination of employment
Probation Period
Employees hired through IceHrm have a probationary period of 90 days, which you can extend up to 180 days. From January 2022, it is IceHrm’s company policy to include probationary periods in all employment contracts.
The probationary period helps employers and employees make sure they are a good fit for each other. This allows the company to quickly decide whether it is a good fit, and the employee can see whether the position matches their career goals.