Last updated:
June 16, 2026
Introduction
Norway is one of the most attractive hiring markets in Europe for foreign employers, offering a highly skilled, English-speaking workforce, strong tech and healthcare sectors.
However, hiring in Norway requires foreign employers to navigate key regulations, including the Norwegian Labour Act (Arbeidsloven), the Working Environment Act, and strict payroll and tax compliance rules under the Norwegian Tax Administration (Skatteetaten).
This is where an Employer of Record in Norway can help. An EOR legally employs workers on your behalf, so you can hire, onboard, and pay talent in Norway without setting up a Norwegian entity or dealing with complex tax registrations and ongoing compliance obligations.
This guide covers Norwegian employment laws, work visas, payroll, taxes, entity setup, and how an EOR compares to establishing a subsidiary.
Norway at a glance
Norway is a Nordic country in northern Europe that borders Finland, Russia, Denmark, and Sweden. According to the World Bank, Norway frequently ranks as the fourth-highest globally for GDP per capita.
Population: 5.6 million
Currency: Norwegian Krone (NOK)
Capital city: Oslo
Languages: Norwegian, Bokmål, Nynorsk, and Sámi
GDP: USD 599.41 billion
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Talk to an expertEmployment in Norway
What you must know before employing in Norway
Norway's employment laws apply to both foreign nationals and Norwegian citizens. However, there are some differences in their entitlements. Let us understand the differences and other aspects of employment laws in Norway.
Norwegian laws may look somewhat complex and confusing, but they are not much different from the employment regulations of many other countries.
Nevertheless, to minimize or mitigate the challenges for companies looking to set up a local office, it is advisable to partner with a local payroll provider who is well aware of Norway's Labor laws for local and foreign workers.
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Entitlement
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Explanation
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Statutory working hours
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Forty hours per seven-day period
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Overtime eligibility
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Only allowed in case of exceptional and time-limited need
Overtime agreements are drawn with the employee’s representative, as follows.
- 20 hours for seven days
- 50 hours for four consecutive weeks
- 300 hours for 52 weeks
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Overtime permitted by the Labor Inspection Authority is as follows.
- 25 hours in 7 days.
- 200 hours in any 26 weeks
- must never exceed 400 hours over 52 weeks
The overtime premium is at least 40% of the agreed hourly rate.
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Paid public holidays
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The public holidays in Norway are as follows.
- New Year's Day
- Maundy Thursday
- Good Friday
- Easter Sunday
- Easter Monday
- Labor Day
- Ascension Day
- Constitution Day
- Whit Monday
- Christmas Day
- Boxing Day/ Second Day of Christmas
Dates of these holidays and observances may change based on religious calendars.
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Medical leave
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Employers pay full salary for 16 consecutive days of sick leave.
From the 17th day, the National Insurance Scheme pays the employee under the employee health benefits in Norway.
Employees can take three consecutive days of sick leave without presenting a medical certificate. However, a medical certificate must be provided on the 4th day.
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Paternal leave
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Norway operates a unified parental benefit system (foreldrepenger) under the National Insurance Act (Folketrygdloven), administered by NAV (the Norwegian Labour and Welfare Administration). Parents choose one of two options at the start of the leave period, and the choice applies to both parents:
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Leave component
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Option A
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Option B
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Rules
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Maternal leave
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15 weeks
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15 weeks
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Mother only. 3 weeks must be taken before the due date. The first 6 weeks after birth are mandatory. Non-transferable.
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Paternal leave
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15 weeks
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15 weeks
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Father or co-parent only. If unused, these weeks are forfeited and not transferable to the mother.
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Shared leave
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16 weeks
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18 weeks
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Freely divided between both parents at their discretion.
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The 3 weeks before birth and the 6 weeks immediately after birth are mandatory for the mother and cannot be reassigned to the father under any circumstances.
Fathers are separately entitled to two weeks of paid leave (pappapermisjon / daddy days) immediately following the birth, in addition to the paternal quota above.
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Annual leave accrual entitlement
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- Employees in Norway receive 25 days of paid leave annually.
- Every employee is entitled to three weeks of continuous leave between June 1 and September 30.
- Employees more than 60 years old receive 31 days of annual leave.
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Employee Protection and Anti-discrimination Rights
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Employee discrimination is prohibited
under the Working Environment Act.
It protects the employee against
direct and indirect discrimination
based on age, gender, disability,
expression, belief, political opinions,
religion, social, and sexual
orientation.
Employers are prohibited from
discriminating against part-time
employees and full-time employees.
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Contractors vs. full-time employees
The contractors and full-time employees are assessed based on the following guidelines:
- It is full-time employment if there is an employment relationship. It includes fixed working hours, fixed monthly compensation, the provision that the employer directs the person’s work, and a notice period.
To hire full-time employees, the company must qualify as a Norwegian employer. For full-time employees, the taxes are deducted by the employers from their paychecks. The employee’s tax is generally 14.1% of the salary.
- The person is a contractor if the work gets performed under their name at their discretion and risk. Their compensation gets reduced due to underperformance, and they work on their equipment at their premises.
The tax liability of a contractor is 18% of the income. You can hire a contract employee for a short-term project.
However, Norway's Working Environment Act treats permanent employment as the legal default.
Unless a valid exception applies, any hire risks being reclassified as permanent, and misclassification in Norway can trigger back-payment of employer social contributions and formal orders from the Arbeidstilsynet (Norwegian Labour Inspection Authority)
Skuad helps you to hire both full-time employees and contractors.
EOR for full-time employees
- Acts as the legal employer across 160+ countries, so you can hire without setting up a local entity
- Supports employment contract generation aligned with local labor laws and statutory requirements across supported markets
- Facilitates statutory contribution workflows covering applicable social insurance and pension obligations
- Supports payroll processing in 70+ currencies with automated tax withholding and statutory deductions
- Helps administer statutory benefits, paid leave, and parental entitlements in line with local requirements
- Assists with termination and offboarding, including notice period and severance calculations as required locally
Contractor management
- Helps onboard contractors with locally compliant agreements that reduce misclassification exposure
- Supports invoice generation, approval workflows, and payment processing across 70+ currencies
- Helps flag classification risk before it becomes a compliance issue with built-in worker classification checks
- Facilitates multi-currency payouts across 70+ currencies with no manual reconciliation
- Helps manage contractor records, contracts, and payment history from a single dashboard alongside full-time employees
Whether you are hiring a full-time employee or a contractor, Skuad supports both. See pricing.
Hiring in Norway
Employers mandatorily run a background check on the employee before hiring them. The background details include previous work history, education, and business interests.
The employment contract law in Norway states that the employer must draft a written contract for the recruited employee within one month of the date of hire. The written employment contracts must mention the job description, compensation, benefits, working hours, overtime benefits, and a termination clause.
The best places to search for companies hiring in Norway are:
- The Arbeidsplassen website provides a listing of jobs. However, the limitation is that it is only available in the Norwegian language.
- To look for jobs in various languages, Eures is one of the top websites.
- Gule sider, often referred to as the Yellow Pages, is a leading online business directory. It shows job listings that might not be available on other platforms.
- Most jobs get listed on the Finn website. The only limitation is that it is in Norwegian.
Skuad is a Global HR platform for building remote teams. We help companies to hire, onboard, pay, and manage their teams in over 160 countries. While the businesses focus on their growth, we take care of the employee contracts, payroll, compliance, and benefits.
Book a demo to see how Skuad gets your first Norwegian hire onboarded in weeks.
Probation & termination
Probation period
The standard probation period in Norway for an employee is six months. At the end of the probationary period in Norway, the employee becomes eligible for benefits and entitlements. The same must be mentioned in the employment agreement in Norway.
Termination of service
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Topics
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Explanation
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Notice for Termination of Employment
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If the employee or the employer decides to terminate the employment contract between the two parties, they must give notice to the other party in writing. The notice period varies depending on the length of employment and the employee's age.
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Duration of Employment
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Notice Period (Below 50)
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Notice Period (Age 50–54)
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Notice Period (Age 55–59)
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Notice Period (Above 60)
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During the probation period
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14 days
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14 days
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14 days
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14 days
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Less than 5 years
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1 month
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1 month
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1 month
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1 month
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More than 5 years
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2 months
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2 months
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2 months
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2 months
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More than 10 years
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3 months
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4*
months
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5*
months
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6* months
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*The extended notice periods of 4, 5, and 6 months apply only when the employer initiates termination. If the employee resigns, the notice period is capped at 3 months regardless of age or length of service.
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Incorporation: how to set up a subsidiary in Norway
Setting up a Private Limited Liability Company in Norway (AS - Aksjeselskap) means registering with the Brønnøysund Register Centre (Norway's official government agency responsible for managing public business and legal registers), depositing a minimum share capital of NOK 30,000, appointing at least two directors with one being Norwegian or European, and absorbing ongoing statutory obligations, all before a single employee is onboarded.
For companies testing the Norwegian market or building a remote Nordic team, taking an EOR solution helps you remove entity overhead without limiting your ability to hire compliantly from day one.
EOR solution
Norway Employer of Record (Norway EOR) solution makes it easier and faster for businesses to expand into Norway. Taking the EOR route ensures smooth and compliant payroll processing and other employment responsibilities without any entity establishment.
Skuad helps you manage monthly payroll, contracts, work permits, taxation, etc., in Norway for your employees.
1. General Employer of Record service terms
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Taxes that apply to invoices
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25% MVA (merverdiavgift, which is Norwegian for Value Added Tax / VAT ) applies to EOR and professional services invoiced by a Norwegian entity. MVA is administered by the Norwegian Tax Administration (Skatteetaten).
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Minimum duration of service
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3 months
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Currency accepted
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Norwegian Krone (NOK)
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Required Details & Documents
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For Norwegian citizens:
- Personal information
- Copy of passport
- Bank details
- Copy of National ID (for permanent residents)
- Job description
For Expatriates:
- Personal information
- Job description
- Educational qualifications
- Technical qualifications
- CV
- Copy of passport
- Copy of ID
- Bank details
- Photographs
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2. Outsourcing employment through an Employer of Record
When, as an organization, you decide to expand into Norway, you also need to determine the route you want to take. Whether to build an in-house team or grab the services of an EOR to manage payroll and employee lifecycle beforehand.
Skuad acts as the legal employer in Norway, so your company can hire, onboard, and pay employees without entity setup, a Norwegian directorial appointment, or in-house payroll infrastructure.
Here is what Skuad helps with:
- Employment contract generation across 160+ countries, aligned with local labor laws and statutory requirements
- Statutory contribution workflows across supported markets, covering applicable social insurance and pension obligations
- Payroll processing in 70+ currencies with automated tax withholding and statutory deductions
- Termination and offboarding support aligned with local labor requirements, including notice period calculations across supported markets
- Work permit and visa support for foreign nationals joining your team
- Background verification covering identity, employment history, and criminal records before onboarding
Start hiring in Norway without entity setup. Book a demo.
Professional Employer Organization (PEO)
A Professional Employer Organization (PEO) is an organization that shares the responsibility of managing employees and payroll with your company. Unlike EOR services, where the complete responsibility of compliance management lies with the outsourced company, a PEO works jointly with your business.
Skuad provides comprehensive HR services for globally managing your remote teams.
Types of visas in Norway
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Visa category
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Explanation
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Work Permit (Skilled Labor)
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For non-EU/EEA nationals taking up employment with a Norwegian employer. The applicant must have one of the following qualifications:
- a completed vocational training programme of at least three years at the upper secondary school level
- a completed degree from a university or university college
- or special qualifications acquired through long professional experience (generally a minimum of six years, demonstrating competence equivalent to vocational training).
The role must be full-time and pay, and working conditions must meet Norwegian norms.
As of September 2025, UDI (the Directorate of Immigration) enforces updated minimum salary thresholds for skilled worker permits.
Required documents:
- Passport and copies of all filled pages.
- Employer-submitted digital confirmation of job offer through the UDI portal/ In this, the applicant receives a code from the employer to enter in their application form.
- 2 recent passport-size photos with a white background.
- Document confirming the applicant has accommodation in Norway.
- Documents related to educational background and work experience.
- Applicant's CV.
- Personal checklist generated by UDI upon completion of the digital application form.
Permit duration:
- Up to one year at a time for vocational-level roles.
- Up to three years at a time for university-educated workers.
- After three years on a skilled worker permit, the applicant may apply for permanent residency. Processing times vary by application type and completeness of documentation; vocational-level applications may take longer due to UDI document verification requirements.
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Intra-company transfer
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For employees of an international company going on assignment for the Norwegian branch of that company.
Qualification requirements (one of the following must apply):
- A completed vocational training programme of at least three years at upper secondary school level, with a corresponding programme existing in Norway.
- A completed degree from a university or university college.
- Special qualifications acquired through long professional experience demonstrating competence equivalent to vocational training.
Employment conditions:
- The applicant must be employed by an international company abroad under a contract with a Norwegian branch.
- The Norwegian company must have a registered business address in Norway and cannot be a staffing agency.
- The assignment must normally be for one specific company in Norway.
- Pay and working conditions must not be poorer than Norwegian norms.
Permit duration and limits:
- Granted for up to two years at a time. The permit can be held for a maximum of six years total, after which the applicant must live outside Norway for two years before applying again.
- Time spent on this permit type does not count toward permanent residency in Norway.
- Processing times vary depending on the type of application and the channel through which it is applied.
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Business Visa (Schengen Type C)
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Norway is part of the Schengen area and issues short-stay Schengen visas (Type C) for applicants intending to visit Norway for business meetings, family visits, tourism, or short training courses, with the intention of returning to their country of residence.
The visa is valid across all 27 Schengen countries.
Duration: A Schengen Type C visa permits a stay of up to 90 days within any rolling 180-day period across the Schengen area.
The 90-day cap is absolute and cannot be exceeded under any circumstances.
While it is possible to apply for a visa extension within Norway if the 90-day limit has not yet been reached, the extension cannot push the total stay beyond 90 days.
Anyone needing to remain in Norway beyond 90 days must apply for a residence permit.
ETIAS (European Travel Information and Authorisation System)
Nationals of countries currently exempt from the Schengen visa requirement, including the United States, United Kingdom, Canada, Australia, Japan, and approximately 60 others, will require ETIAS authorisation before entering Norway.
ETIAS is being introduced for the Schengen area and applies to short-stay visa-exempt travellers.
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Work permit in Norway
Norway’s work permits for foreigners can be taken care of by the Skuad’s local partner in the country. As an EOR in Norway, Skuad takes care of all the requirements and responsibilities related to employment.
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Work permit terms
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Details
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Can Skuad sponsor a work permit in Norway?
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Yes
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Work permit process
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- An EOR local partner submits a digital job offer confirmation through the UDI portal on your behalf.
- The employee receives a confirmation code from the local partner.
- The employee submits their residence permit application online at udi.no, entering the confirmation code.
- The employee pays the application fee of NOK 6,300 directly to UDI at the time of submission.
- UDI (Norwegian Directorate of Immigration) reviews the application and supporting documents, including proof of qualifications, employment contract, and confirmation that pay meets Norwegian standards.
- On approval, UDI issues a single residence permit that covers both the right to reside and the right to work in Norway.
- The employee can begin employment upon receiving the residence permit.
In some cases, early employment start is possible from the date of police registration, before the formal permit is issued.
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Work permit validity
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Permit duration is determined by the employee's qualification level: vocational training level, up to 1 year per grant; university or higher education level, up to 3 years per grant.
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What’s the Cost of a Work Visa
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The current application fee for a skilled worker residence permit is NOK 6,300
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Duration of Norway Work Visa Processing
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Visa processing time is typically 4 to 8 weeks for complete applications. Complex cases or vocational-level applications requiring further document verification may take longer. UDI does not publish a guaranteed processing time
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Skuad supports visa and work-permit workflows across supported markets through its Global Immigration platform.
Things you must know to set up payroll in Norway
To set up payroll and manage taxation in Norway, you need to be aware of the rules, which vary from one category to another. The first and foremost thing you must consider is whether you want to employ foreign professionals or locals.
As a foreign company, you must be aware of and adhere to local tax laws like income tax, business tax, withholding tax, employee compensation insurance, social security costs, etc. There are two ways of doing it:
a) You set up an in-house team to manage the payroll in Norway.
b) You take the services of payroll outsourcing in Norway. The company will not only make the management simpler but also ensure complete compliance with Norwegian laws.
Taxation in Norway
Employer taxation
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Tax
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Explanation
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Tax returns
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Yes
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Financial Year End Date
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31 December
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Corporate Tax
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The corporate tax gets calculated on taxable profit at 22%
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Withholding Tax (For Non-Residents)
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Dividends: 25% standard rate. Reduced to 0% for qualifying EEA-domiciled corporate investors under the participation exemption. Further reductions available under applicable tax treaties
Interest: 0% generally. 15% on payments to related parties in low-tax jurisdictions outside the EEA
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Payroll tax
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Norwegian employer payroll taxes are levied on employers based on the salaries, wages, and benefits paid to the employees.
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Employers' Social Security and statutory contributions
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The contribution is based on the salary and benefits given to the employee. The contribution is levied at 14.1% and can be lower for a sparsely populated region.
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Medical insurance
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Children under the age of 16 are entitled to free medical treatment. Adults who pay more than NOK 3,278 (2026 threshold, set annually) in approved user fees within a calendar year receive an exemption card (frikort). The frikort covers all remaining approved user fees for the rest of that calendar year. The threshold resets on 1 January each year.
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Employee taxation
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Tax
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Explanation
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Income tax rates
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There are two different tax systems in Norway.
- The bracket tax for Norwegian tax residents)
- PAYE Flat-Rate Scheme (for non-residents)
The bracket tax rates below apply to Norwegian tax residents. Non-residents on short work stays or in their first year of tax residency are typically subject to Norway's PAYE flat-rate scheme instead.
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Gross income
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Rate
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NOK 217,401 to NOK 306,050
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1.7%
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NOK 306,051 to NOK 697,150
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4%
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NOK 697,151 to NOK 942,400
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13.7%
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NOK 942,401 to NOK 1,410,750
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16.7%
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Public Pension
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Members of the Norwegian National Insurance Scheme (Folketrygden) are entitled to state pension from age 67 under the National Insurance Act (Folketrygdloven). Early withdrawal at age 62 is available for those with sufficient pension accrual. From 2025, Norway will gradually increase the standard retirement age for those born in 1964 or later, in line with rising life expectancy.
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EOR services in Norway simplified
Starting a Norwegian entity means you have full control, but it comes with added costs like incorporation fees, payroll setup, tax registration, and ongoing compliance work.
For companies that only need a few hires, this investment often comes much before you really need a permanent local presence.
An Employer of Record fills that gap. You can hire talent, run compliant payroll, and support employees in Norway without taking on the cost and complexity of setting up your own entity.
With Skuad, you can hire and manage employees in Norway through one platform. Your team can scale fast while staying compliant with local employment and payroll rules.
Book a demo to see how Skuad can get your first Norwegian hire onboarded in just weeks.
FAQ
1. What is an employer of record in Norway?
An Employer of Record in Norway is a third-party company that legally employs workers on behalf of a foreign client, while the client manages the day-to-day work of the employee.
2. What is the difference between an employer of record and a staffing agency?
An EOR acts as the legal employer for employees, while a staffing agency primarily focuses on recruiting and placing temporary or permanent employees with client companies.
3. How much does an EOR service in Norway cost?
EOR service fees in Norway typically range from $199 to $699 per employee per month, depending on the provider and services included.
4. What compliance risks should foreign employers know before hiring in Norway?
Norway's Arbeidsmiljøloven defaults all employment to permanent contracts unless a clear legal exception applies. Foreign employers who misclassify permanent employees as contractors risk re-classification orders from the Labour Inspection Authority (Arbeidstilsynet), back-payment of employer social contributions, and legal disputes.
5. How quickly can an EOR onboard an employee in Norway?
For Norwegian and EU/EEA citizens, an EOR can typically onboard an employee in three to five business days once employment contracts are signed and Skatteetaten registration is complete.
