Norway boasts beautiful natural landscapes, including fjords, coastlines, and mountains. Considered a modern, innovative country, Norway places a strong emphasis on sustainability and outdoor life.
Norway consistently ranks among the top countries in terms of quality of life. Norwegians value work-life balance but are also very productive, with the country ranking 2nd in the world for GDP per hour. This work culture makes locals attractive candidates for global employment.
Key takeaways:
- The population of Norway is highly educated and tech-savvy, with many students majoring in STEM fields at university.
- Most of the population speaks English, making Norwegians a popular choice for global remote teams.
- International employers must familiarize themselves with the local labor laws governing working hours, paid leave, entitlements, termination, etc.
Advantages of Hiring in Norway
Ninety percent of Norwegians are fluent in English, making the country a top choice for global companies hiring remote workers. Norway also emphasizes ease of communication between employers and employees.
Norwegians favor civil conversations over workplace conflict and prioritize cooperation and mutual respect.
Here are some key details about Norway:
- Language: Norwegian
- Currency: Norwegian Krone (NOK)
- Capital City: Oslo
- Population: 5.6 million
- Cost of Living Rank: 6th
A Hub for Highly Skilled Workers
Norway has a very educated population, with a 98% tertiary school enrollment. Universities produce top-notch talent in STEM fields, leading to a tech-savvy workforce.
Over the past few years, tech startups have received billions in funding. Additionally, Oslo consistently ranks high in terms of innovation, research, and public R&D expenses per capita.
Common remote positions in Norway include:
- Software Developer
- Business or Financial Analyst
- Digital Marketing Specialist
- Customer Support Agent
- Sales Representative
Employment Laws: Hiring Compliantly in Norway
Employment Contracts
Employment contracts in Norway are governed by the Working Environment Act (Arbeidsmiljøloven), which ensures safe employment conditions and equal treatment in the workplace. Under the Act, there are several different types of employment contracts. The two most common are:
- Permanent: There is no end date specified; employment continues until terminated by either party.
- Temporary or fixed-term employment: This type of employment contract is only allowed under specific conditions, such as seasonal or project-based work, and typically cannot exceed 12 months.
Working Hours & Pay
Working hours are limited to 40 hours per week or nine hours within a 24-hour period. Anything beyond standard working hours is considered overtime. Overtime pay must be at least an additional 40% of the employee's salary.
Norway does not have a national minimum wage. However, there are minimum wages in specific sectors, such as construction and agriculture, via collective agreements.
Probationary Periods
Under the Working Environment Act, probationary periods for permanent employees can last up to six months. If the employment is temporary, the probationary period is limited to half the employment agreement's length.
If an employee is terminated during the probationary period, the termination doesn't have to follow the strict process required for a non-probationary employee.
Employer Taxes
Employer taxes in Norway include Social Security contributions, which cover benefits such as health insurance. Employers' contributions to the National Insurance Scheme (Social Security benefits) vary by region, up to 14.1% of the employee's salary.
Employers must also contribute at least 2% of the employee's income to an occupational pension scheme.
Termination Process & Severance Pay
In Norway, terminating an employee is a formal, legal process outlined in the Working Environment Act. Employers must have just cause for termination, such as poor performance, absenteeism, or misconduct.
Employers are required to document and prove the reason for termination and first discuss the potential termination with the employee. Employees have a right to contest the termination.
The mandatory notice period depends on several variables, including the employee's age and length of tenure. Notice periods range from one to three months, with longer periods required for workers over 50. No severance pay is required unless specified in the employment contract or collective bargaining agreement.
Paid Leave Laws in Norway
Vacation and Holiday
"Annual leave" (vacation time) and "holiday leave" are used interchangeably in Norway. Holiday leave is paid time off during working days. Working days don't include Sundays and public holidays.
Under the Holidays Act, all employees are entitled to at least 25 working days of holiday, and employees over 60 receive an extra six days of holiday leave. Employees can decide when they go on holiday, but employers must ensure employees use all of their holiday leave.
Additionally, employees receive paid time off for public holidays, including:
- New Year's Day
- Easter
- Labour Day
- Constitution Day
- Christmas
- Boxing Day
Sick Leave
Employees can take up to 52 weeks of sick leave due to illness. The employer pays the first 16 days. Starting on day 17, the National Insurance Scheme takes over.
Maternity Leave
Pregnant employees are entitled to 49 weeks of leave with 100% pay or 59 weeks with 80% pay. Leave may commence up to 12 weeks before the mother's due date.
Paternity Leave
Fathers are entitled to two weeks of unpaid paternity leave.
Parental Leave
Parents can also split the paid leave between the mother and father. However, three weeks prior and up to six weeks after delivery are reserved for mothers.
Why Independent Contractors Love Norway
Norway does not have a digital nomad visa. However, the country offers an independent contractor visa, allowing self-employed workers to live and work there for up to two years. To qualify, applicants must prove they are self-employed, have at least one Norwegian client, and a minimum annual income of EUR 35,719.
Depending on their interests, a contractor might choose to live in one of the following cities:
- Oslo: a bustling, vibrant city
- Bergen: for outdoor enthusiasts
- Trondheim: a tech-savvy university town
- Stavanger: a family-friendly city
- Kristiansand: for a coastal, seaside atmosphere
In addition to outdoor activities, Norway offers clean, safe cities and a high quality of life.
How to Pay Remote Workers in Norway
If you're paying a remote employee in Norway, you have several options:
- International bank transfers can connect banks across different countries but incur hefty fees.
- PayPal can send international payments but charges foreign exchange and transaction fees
- Wise is a popular choice for international transfers but has limited customer support
- Cryptocurrency bypasses traditional banking systems but requires a crypto wallet
One way to simplify payments to Norwegian employees is to partner with an Employer of Record. An EOR can handle the payment processing for remote employees while ensuring compliance with all local labor laws.
Hire in Norway with RemoFirst
As an EOR, RemoFirst helps companies hire full-time or part-time employees in more than 185+ countries and contractors in 150+ countries, including Norway.
RemoFirst manages all HR-related tasks for your remote international team, such as onboarding, global payroll, employee benefits, and legal compliance, so you don't need to open a local entity.
Schedule a demo to discover how RemoFirst can simplify your global hiring.
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