No matter which country you decide to expand to, developing a strong compensation and benefits plan will be crucial for attracting and retaining top talent. Before establishing your company in Norway, make sure you fully understand the country’s compensation laws and benefits requirements to remain compliant.

Norway compensation laws

Norway’s compensation laws do not dictate a general minimum wage. However, minimum rates have been introduced for a number of sectors via Collective Bargaining Agreements (CBAs). It’s important to check if your industry or employees are covered by a CBA, as this agreement may stipulate more favorable terms than the minimum entitlements.

Jobs requiring a bachelor’s or master’s degree have a minimum salary requirement. Positions requiring a bachelor’s degree must pay at least NOK 522,600 gross yearly salary unless a collective agreement or statutory industry pay scale sets a different amount. Positions requiring a master’s degree for a skilled-worker residence permit must pay at least NOK 599,200 gross per year before tax. The applicable rate is typically what’s in force when the application is submitted.

In terms of overtime, employees are entitled to their ordinary hourly pay plus an overtime premium of at least 40%. If both employer and employee agree, then overtime may be partly or entirely taken as time off in lieu.

The Norwegian Holidays Act mandates 25 working days of annual holiday, equal to four weeks plus one day for employees working Monday–Friday. Even so, many employers and collective agreements provide five weeks of holiday.

The statutory minimum holiday pay is 10.2% of yearly pay for the standard entitlement. Employees with five weeks’ holiday receive 12%. Employees over 60 typically receive 12.5% with a statutory earnings ceiling unless a collective agreement provides otherwise. Employees over 60 with five weeks’ holiday typically receive 14.3%. Holiday pay is calculated from the previous calendar year’s qualifying earnings.

Guaranteed benefits in Norway

The country has 12 nationwide public holidays in 2026, but substitute days aren't provided if a holiday falls on a weekend.

Employers generally cover the first 16 calendar days of an employee’s sick leave. NAV will pay sickness benefits from day 17 if the employee is eligible. However, more favorable terms may be included in the employment contract or CBA.

Another guaranteed benefit in Norway is public health insurance. All Norway residents receive free treatment at public hospitals. Nonetheless, private health insurance is also growing and becoming more popular in Norway.

Norway benefits management

Your Norway benefits management plan should also include supplemental benefits. A strong benefits plan can set you apart from other employers and help attract top talent.

Restrictions for benefits and compensation

Most benefits and compensation restrictions come from CBAs. Review both the CBA and the employment contract to make sure you are providing the correct minimum wage and benefits.

Norway competitive benefits planning

Pursuing business growth in a new country requires a robust compensation strategy to meet employee needs and recruit top talent. As you establish your company in Norway, designing a competitive benefits plan that meets market standards, legal regulations, and employee expectations is critical to cultivate a successful and engaged workforce.

Norway employee benefits plans

Beyond keeping your company compliant, the benefits you provide should showcase your dedication and appreciation toward your team. Here are a few fringe benefits that are common but not required:

  • Professional learning resources
  • Housing and accommodation assistance
  • Childcare

Requirements for employee benefits in Norway

The National Insurance Scheme covers a wide range of services for employees. All residents of the country must be members, and employers are required to contribute. This national coverage includes the following benefits:

  • Holiday leave
  • Sick leave
  • Disability leave
  • Parental leave
  • Mandatory occupational pensions in addition to state-funded pension

How to design your employee benefits program

Every country has different laws and expectations surrounding benefits. Still, the fundamentals of designing benefits plans remain the same. As you develop a custom benefits package for your employees in Norway, you can follow these basic steps.

1. Set your goals and budget.

Analyze your budget and current business objectives to set a starting point. Discuss key goals with stakeholders and define the resources you have available for employee benefits.

Knowing your budget and top business goals will help you allocate resources more effectively and leave room for continued international growth. For example, your initial goal might be to hire a large team to support your company’s growth. If that’s the case, you may need to keep supplemental benefits to a minimum to ensure your budget will cover the statutory requirements for every employee.

2. Assess employee expectations.

Understanding employees’ needs is paramount to developing a competitive benefits program that offers value. Consider sending out questionnaires to local employees or conducting interviews to see which benefits they expect, and which are most important to them.

During this stage, you might also research other local companies in your industry to match their benefits offerings.

3. Develop your benefits program.

After you finish your needs assessment, complete a gap analysis to identify your current capabilities and where your company can grow. Integrate the data you’ve gathered into a comprehensive strategy that prioritizes vital benefits for your employees. Be sure to include employee contributions, cost containment features, and administration expenses in your calculations.

Average cost of benefits per employee

The amount your company will spend on benefits is highly individualized and depends on how you build your program. During the development stage of planning, ensure you’re evaluating your available resources and creating a benefits plan that is sustainable in the long term. At G-P, we recommend budgeting around 20% on top of the employee’s gross salary for benefits.

How to calculate employee benefits

Companies can calculate the monetary value for the supplemental benefits they offer based on market standards in their industry and target region.

To obtain exact percentages for these contributions, employers can consult with the Norwegian Tax Administration.

How are employee benefits taxed in Norway?

Employers are responsible for reporting all deductible and taxable benefits provided to employees. Qualifying non-cash employer gifts are tax-free up to NOK 5,000 per employee per calendar year in 2026. This tax exemption can apply to interest benefits, housing assistance, and other similar items. Most other types of benefits will be taxable, so employers need to take this into account to determine appropriate tax rates.

Employee health benefits plans

The National Health Insurance scheme covers health benefits for employees. Employers are responsible for providing mandatory leave for health reasons, including sickness, parental, and disability leave.

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