Employer of Record in Norway

An Employer of Record (EOR) in Norway is a company that legally hires employees on your behalf. This means you can build a team in Norway without setting up a local entity. The EOR handles all the legal and HR responsibilities that come with employment. This includes payroll, taxes, benefits, and compliance with Norwegian labor laws. Using an EOR like Rivermate (https://rivermate.com/employer-of-record) simplifies your expansion into Norway. It saves you time and reduces risk.

How an Employer of Record (EOR) Works in Norway

An EOR simplifies hiring in Norway. We handle the legal and administrative tasks so you can focus on your business. Here is how it works:

1. You Find the Talent. You recruit and select the best candidate for your team in Norway.
2. The EOR Hires Your Candidate. We legally hire the employee through our local Norwegian entity. The employment contract complies with all Norwegian labor laws.
3. We Handle Onboarding. The EOR manages all the necessary paperwork for the new hire. This includes registering them with the Norwegian Tax Administration (https://www.skatteetaten.no/en/) and other required government bodies.
4. We Manage Payroll and Benefits. We process salary payments, withhold taxes, and manage social security contributions. We also administer employee benefits according to local standards.
5. You Manage Your Employee. Your new team member works for you, just like any other employee. You direct their daily tasks and responsibilities. The EOR remains the legal employer, handling all HR and compliance matters in the background.

Why use an Employer of Record in Norway

Using an EOR in Norway makes international expansion straightforward. It removes the significant barrier of establishing a legal entity in the country. This process can be expensive and time-consuming. An EOR allows you to enter the Norwegian market quickly and compliantly. You can test the market or build a long-term team without the upfront investment and administrative burden.

Here are some key benefits:

• Enter the Market Faster. You can hire employees and start operations in days, not months.
• Ensure Full Compliance. We navigate Norway’s complex labor laws and regulations for you. This minimizes your legal risks.
• Reduce Administrative Work. We handle all HR tasks, including payroll, tax filings, and benefits management.
• Save Money. Avoid the high costs associated with setting up and maintaining a legal entity in Norway.
• Offer Competitive Benefits. Provide your Norwegian employees with attractive and compliant benefits packages.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Norway includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Norway.

Hiring in Norway gives you access to a skilled and well-educated workforce. The country has a strong economy and a high rate of labor participation. To attract top talent, you will need to offer competitive benefits. Norwegian employees enjoy a high level of job satisfaction, so you will be hiring in a positive work environment.

Employment contracts & must-have clauses

You must provide a written employment contract to every employee. As of July 2024, you need to provide this contract within seven days of the employee's start date.

Norwegian law requires specific clauses in all employment contracts:

• Identifying Information: The names of both the employer and the employee.
• Workplace: The address where the employee will work. If there is no fixed workplace, the contract must state this.
• Job Description: A description of the work, or the employee's title or position.
• Start Date: The date the employment begins.
• Trial Period: Any details about a probationary period.
• Leave and Holidays: Information on the employee's right to holidays and holiday pay.
• Notice Periods: The notice periods for both the employer and employee.
• Compensation: The employee's salary, any additional compensation, and the payment schedule. All parts of compensation must be listed separately.
• Working Hours: The daily and weekly working hours and information on breaks.
• Termination: Details about the termination process.

Probation periods

You can include a probation period in the employment contract for up to six months. For temporary positions, the probation period cannot be more than half the length of the contract. During this time, you can assess if the employee is a good fit for the role and your company.

The notice period during probation is typically 14 days, unless you agree to a different length in the contract. You can only terminate an employee during probation based on their suitability for the job, their skills, or their reliability.

Working hours & overtime

Standard working hours in Norway are a maximum of 9 hours per day and 40 hours per week. Many companies have agreements for a 37.5-hour workweek.

Work performed beyond the standard 40 hours a week is considered overtime. You must pay a supplement of at least 40% of the employee's regular wage for overtime hours. There are limits on how much overtime an employee can work:

• 10 hours in a week
• 25 hours in four consecutive weeks
• 200 hours in a 52-week period

Public & regional holidays

Norway has several public holidays throughout the year. Here is a list for 2025:

Hiring contractors in Norway

You can hire independent contractors for specialized skills or short-term projects. Contractors operate their own businesses and are responsible for their own taxes and social security contributions. They are not covered by the same labor laws as employees, meaning they do not have rights to things like paid holidays or sick pay.

It is very important to classify workers correctly. Misclassifying an employee as a contractor can lead to serious penalties. These can include back pay for benefits, unpaid taxes, and fines. An Employer of Record (EOR) can help you avoid these risks. An EOR acts as the legal employer, taking on the responsibility for compliance with Norwegian labor laws. This allows you to hire talent in Norway without the need to set up your own legal entity in the country.

In Norway, handling payroll means following the country's specific employment laws. This ensures your employees get paid correctly and on time. Staying compliant helps you avoid legal issues and build trust with your team. Navigating Norwegian labor laws, from wage calculations to tax deductions, requires local expertise.

Payroll cycles & wage structure

In Norway, employees are typically paid once a month. You must provide a payslip with each payment, showing the gross pay and any deductions. This can be a digital or paper document. It's also a standard practice to keep payroll records for at least five years.

Your employment contracts should be in Norwegian and use the local currency, the Norwegian krone.

Overtime & minimums

While there is no national minimum wage in Norway, some industries have minimum wages established through collective bargaining agreements.

Standard working hours are 40 hours per week and 9 hours per day. Any work beyond this is considered overtime and must be paid at a higher rate, typically 140% or more of the regular wage. There are limits on how much overtime an employee can work.

Employer taxes and contributions

Employers in Norway contribute to social security and other programs. These contributions fund sick pay, parental leave, and pensions.

Employee taxes and deductions

Employees also contribute to the national insurance scheme and pay income tax. Taxes are handled through a pay-as-you-earn (PAYE) system, where you deduct the necessary amounts from your employees' wages.

In Norway, you'll find a strong social safety net and a culture that values work-life balance. This means employees get generous leave and benefits, supported by both the government and employers. The system is built on the idea that a well-cared-for workforce is a productive one. As an employer, understanding these benefits is key to attracting and keeping talented people.

Statutory leave

The Norwegian government mandates several types of leave to support its workforce. These are the minimum requirements you must provide.

• Annual Leave: You must give employees at least 25 working days of holiday leave each year. People over 60 get an extra six days. Holiday pay is calculated from the previous year's earnings.
• Parental Leave: Parents are entitled to a combined 49 weeks of leave with full pay or 59 weeks with 80% pay. This includes specific quotas for each parent to encourage shared responsibility.
• Sick Leave: If an employee gets sick, you cover the first 16 calendar days. After that, the National Insurance Scheme takes over for up to a year.

Public holidays & regional holidays

Norway has national public holidays, but regional holidays are not a common practice. Here are the public holidays for 2025.

Typical supplemental benefits

To attract top talent, many companies offer more than the legal minimum. Here’s a look at what’s required by law versus what you can offer as an extra perk.

How an EOR can help with setting up benefits

Setting up employee benefits in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR acts as the legal employer for your team in Norway. This means they handle all the administrative tasks tied to employment.

Here’s how an EOR can help:

• Ensures Compliance: An EOR stays up-to-date with Norwegian labor laws, so you don't have to. They make sure your benefits packages meet all legal requirements.
• Manages Administration: From enrolling employees in mandatory pension plans to processing leave requests, an EOR handles the paperwork. This frees you up to focus on your business.
• Offers Competitive Packages: An EOR can provide insights into the local market. They can help you design a benefits package that is both competitive and compliant, helping you attract and retain the best employees.
• Simplifies Payroll: An EOR manages payroll and ensures all contributions to social security and other funds are made correctly and on time.

Letting an employee go in Norway requires a structured and fair process. You cannot simply dismiss someone at will. The law protects employees from unfair dismissal, so you need a valid and objective reason for termination. This could be due to the employee's performance or conduct, or because of restructuring within your company. Before you make any decision, you must hold a formal meeting with the employee to discuss the situation. This gives them a chance to respond. If you decide to proceed with termination, you must provide the notice in writing.

Notice periods

The minimum notice period you must give an employee depends on their length of service. These are the legal minimums, but your employment contract or a collective agreement might specify longer periods.

Here are the statutory notice periods you must follow when you terminate an employment contract:

• During probation: 14 days
• Less than 5 years of service: 1 month
• 5 to 10 years of service: 2 months
• 10 or more years of service: 3 months

There are also special notice periods for older employees with long service:

• 10+ years of service and age 50 or over: 4 months
• 10+ years of service and age 55 or over: 5 months
• 10+ years of service and age 60 or over: 6 months

If an employee resigns, the notice period is typically between one and three months.

Severance pay

Norway does not have a statutory requirement for severance pay. You are only legally required to pay the employee their regular salary and contractual benefits during their notice period.

However, many employers choose to offer a severance package as part of a mutual termination agreement. This is often done to encourage the employee to accept the termination without dispute. Employees in Norway have the right to challenge a dismissal in court. If they do, they can remain in their position and continue to receive their salary until the court makes a final decision. A severance agreement, where the employee waives their right to sue, can help you avoid a long and potentially costly legal battle.

How Rivermate handles compliant exits

When you partner with us, you can be sure that every employee exit is handled correctly and compassionately. We manage the entire offboarding process to ensure you comply with all of Norway's labor laws.

Here is how we handle it:

• Documentation: We make sure you have a clear and objective reason for the termination, with all the necessary documentation to support your decision.
• Formal Meeting: We guide you through the process of conducting the mandatory discussion meeting with the employee, ensuring it is fair and properly recorded.
• Written Notice: We prepare a compliant termination letter that meets all the legal requirements, including informing the employee of their rights.
• Notice Periods: We calculate the correct notice period based on the employee's service time and age, ensuring you meet your legal obligations.
• Final Pay: We handle the final payroll, ensuring the employee receives all their entitled pay and benefits for the notice period.
• Termination Agreements: If you choose to offer a severance package, we can help you draft a fair and legally sound termination agreement.

We take care of the complexities of offboarding so you can focus on running your business. With Rivermate, you can navigate employee terminations in Norway with confidence and peace of mind.

Navigating visas and work permits in Norway can feel complex. If you are not a citizen of an EU or EEA country, you will need a residence permit to work in Norway. The most common route is the Skilled Worker Visa. This permit is for professionals with specific qualifications and a job offer from a Norwegian employer. Think of the "work visa" as your entry ticket into the country, while the "work permit," officially called a Residence Permit for Work, is your legal right to live and work there.

Employment visas & sponsorship realities

An Employer of Record (EOR) can sponsor work permits for foreign employees, but there are practical limits. The EOR must be a registered legal entity in Norway to sponsor anyone.

Here is what you can typically expect an EOR to sponsor:

• Skilled Worker Visa: This is the main path for hiring full-time foreign talent. To qualify, you need a formal job offer, and the salary must meet Norwegian standards.
• Seasonal Worker Visa: For temporary jobs in specific industries like tourism or agriculture.

An EOR generally cannot sponsor independent contractors or freelancers for a work permit. These individuals have a separate application process and must prove their self-employment status.

The process of getting a work permit usually takes one to two months. Your work permit is tied to your specific job, so changing roles or employers may require a new approval from the Norwegian Directorate of Immigration (UDI).

Business travel compliance

Short-term visits for business are possible, but the rules are strict. You cannot simply work in Norway on a tourist or business visa.

Here are the key points for staying compliant:

• Schengen Business Visa: If you are from a non-Schengen country, you will likely need a Schengen Business Visa for short trips. This allows you to stay for up to 90 days within a 180-day period.
• What is a "business trip?": A business trip generally covers activities like attending meetings and conferences. It does not permit you to engage in actual work or business activities.
• Avoid productive work: To stay compliant, you should not perform hands-on work, engage in projects, or provide services to a Norwegian company. These activities require a formal work permit.

If your trip involves anything more than attending meetings, it is crucial to check if you need a residence permit. Working without the proper authorization can lead to fines and other penalties.