Norway Compensation & BenefitsReading Time: 2 minutes
No matter what country you decide to expand to, your employees will be primarily concerned with their compensation and benefits. When developing a company in Norway, employers must fully understand the country’s compensation laws and benefit requirements to make sure they stay compliant. You should also offer additional benefits employees may expect as part of your Norway benefit management plan.
Working with Globalization Partners is the key to expanding faster and staying compliant. We’ll hire employees to work for you and dole out the correct compensation and benefits to every single worker. As the Employer of Record, we’ll be held compliant instead of you.
Norway Compensation Laws
Norway compensation laws do not dictate a minimum wage. However, it’s crucial to check if your industry or employees are covered by a collective bargaining agreement (CBA), as this agreement may stipulate a minimum wage. The country does have a standard overtime pay, which is at least 40% more than the employee’s typical rate. You can also give time off instead of payment.
The Norwegian Holidays Act mandates employers to give a four week and one-day annual holiday entitlement, but most offer five weeks of vacation depending on the CBA or employment contract. Employees must also receive a minimum holiday pay of 10.2% of the annual remuneration. Holiday pay is 12% if the employee is entitled to five weeks and 12.5% for employees more than 60 years old.
Norway benefit management includes offering certain guaranteed benefits to your employees. For example, the country celebrates 10 public holidays during which employees receive the day off. You’ll also need to provide 16 calendar days of sick leave, with the Norwegian Labor and Welfare Service (NAV) paying for the 17th day forward. However, these requirements can change based on your employment contract or CBA.
Another guaranteed benefit in Norway is public health insurance. All Norway residents receive free treatment at public hospitals or can opt for treatment at a private clinic if they pay the full cost. Private health insurance is growing in Norway, which employers should keep in mind in case it becomes a guaranteed benefit in the future.
Norway Benefit Management
Your Norway benefit management plan must also include any supplemental benefits that employees may expect. A strong benefits plan can set you apart from other employers and attract a top level of talent. For example, many employers in Norway offer stock options to consultants, managers, and other employees in high positions. Globalization Partners recommends budgeting around 20% on top of your employee’s gross salary for benefits.
Benefits and Compensation Restrictions
Most benefits and compensation restrictions come from a CBA. Go over both the CBA and the employment contract to make sure you give employees the correct minimum wage and benefits.
Why Globalization Partners?
We offer an easier way to manage your employees’ benefits and compensation through our Norway compensation and benefits outsourcing services. With us, you can grow your company while we take care of the rest. Contact us today to learn more about our services.