Do you want to hire an employee in Norway without a permanent establishment but need a Norwegian payroll?
IPS can help you hire and pay employees in Norway in compliance with the law, even without a Norwegian branch or permanent establishment.
There are 2 ways you can hire someone in Norway without a permanent establishment:
- Employer of Record (Norway) – this is where your employee is employed directly by us and deployed to you full time. This is also known as Umbrella Company or employee leasing in Norway.
- Direct employment in your company but with payroll accounting according to Norwegian law by registering your company as a foreign employer in Norway.
Both employment options offer their advantages and disadvantages. Contact us to find out which one suits your project better. We will be happy to advise you and find the best solution for your company.
IPS is your global payroll solution for a successful and fast international expansion without a permanent establishment.
Remote Work Full Time from Norway – Information for Hiring Employees in Norway
To ensure that you succeed in your first attempt abroad, IPS as your international payroll partner is here to assist you with the correct employment of your employees in Norway and the preparation of Norwegian payroll in accordance with the laws of the country. Following is some information to help you understand the Norwegian payroll system.
Many Norwegian companies offer their employees individual fringe benefits to retain them. These often include supplementary health insurance, kindergarten places, supplements to pension insurance, etc.
Social security contributions vary at regional level in Norway. These regions determine the social security rate. This varies from 0% in Spitsbergen to 14.1% in Oslo. If a company operates in more than one region, the highest rate applies to all employees. However, there are certain sectors of the economy that have to pay the maximum rate regardless of their location.
The contribution to the pension insurance is at least 2%.
Workers’ compensation insurance varies greatly between sectors and employment, as in most countries.
Thus, the total non-wage labour costs amount to approx. 17% of gross salary, excluding voluntary contributions.
If you do not have an office in Norway, you will need a service like IPS to calculate and pay these additional employer costs correctly according to Norwegian law. With international payroll in Norway from IPS, you can ensure that your employee is paid compliantly according to Norwegian law.
International payroll services in Norway requires compliance with Norwegian employment law.
As your international payroll service in Norway, we make sure you are equipped with the information you need.
When an employee falls ill in Norway, the employer is required to continuing paying for the first 16 days of the illness. After that, the National insurance system takes over for up to 52 weeks. For an employee to be able to receive sickness benefits from the National Insurance system, a medical certificate must be presented.
Vacation and public holidays
An employee is entitled to 25 working days of holiday. Working days are all days except Sundays and public holidays. For employees over 60, an additional six days apply.
There are 14 national public holidays.
- 1 January: New Year’s Day
- March-April: Easter: Maundy Thursday, Good Friday, Easter Sunday, and Easter Monday
- April-June: Ascension Day
- 1 May – Labour Day
- 17 May: Norwegian National Day/Constitution Day
- May-June: Pentecost (Whitsun): Pentecost Sunday (Whit Sunday) and Whit Monday
- 25 December: Christmas Day
- 26 December: Boxing Day
A probation period of a maximum of 6 months can be agreed upon. The notice period during probation is 14 days.
Notice must always be given in writing. After probation, if nothing else has been agreed, a notice period of one month applies. However, three months is usually agreed.
The statutory notice period increases up to 6 months depending on the age of the employee and the length of service. However, these age-related periods only apply to the employer.
As your international payroll company in Norway, we will ensure that you comply with the legal framework when giving notice.
Use our service to hire employees in Norway. We register you as an employer without you needing a branch office.
We take care of payroll, social security contributions and everything else. You will receive a simple invoice from us that includes everything.