Employer of Record (EOR) in Norway
Employer of Record (EOR) in Norway enables companies to hire employees without opening a local entity. With a workforce of over 2.8 million, Norway offers highly skilled professionals in oil and gas, technology, shipping, engineering, and renewable energy. The country has strict labor laws, generous employee benefits, and high social contributions, making compliance challenging for foreign employers. Businesses often choose EOR services in Norway to handle payroll, benefits, taxation, and contracts while staying compliant with local employment rules.
About Norway
Norway, located in Northern Europe, is one of the world’s wealthiest nations thanks to its natural resources, particularly oil and gas. Despite not being a member of the European Union, Norway is part of the European Economic Area (EEA), which provides access to the EU’s single market. The Norwegian Krone (NOK) is its national currency.
Norway’s economy is diverse, with major sectors including energy, shipping, aquaculture, manufacturing, and technology. It consistently ranks high in global competitiveness and quality of life. The workforce is highly educated, multilingual, and known for innovation and technical expertise.
The labor market in Norway is shaped by collective bargaining agreements, which strongly influence salaries, working hours, and employment conditions. With strong worker protections, employers must comply with detailed regulations regarding leave, termination, and contributions. For foreign companies, navigating these requirements is often complex, making EOR services a practical way to access Norwegian talent without the need for a local subsidiary.
Employment Terms and Regulations
Types of Contracts:
Permanent, fixed-term, temporary, and part-time contracts.
Job Titles:
Common in energy, IT, shipping, healthcare, and engineering.
Working Hours:
Standard 37.5–40 hours per week, with strict overtime regulations.
Minimum Wage:
No national minimum wage, but wages are set through collective bargaining agreements (varies by sector).
Probation Period:
Up to 6 months.
Taxation and Contributions
Employers must pay social security contributions covering pensions, unemployment, and healthcare. Rates differ slightly depending on the region where the employee works.
Types of Leave
Annual Leave:
25 working days (31 days for employees over 60).
Sick Leave:
Employer pays for first 16 days, then covered by social insurance.
Parental Leave:
Up to 49 weeks at full pay or 59 weeks at 80% pay, shared between parents.
Public Holidays:
Around 10–12 per year.
Employee Benefits
Mandatory healthcare coverage, pensions, paid vacation, parental leave benefits, and accident insurance. Many employers also provide wellness allowances and additional pension schemes.
Termination Process
Termination requires objective grounds such as redundancy or misconduct. Notice periods range from 1 to 6 months depending on tenure and age. Severance is not mandatory but may be included in agreements.
Employer Taxes
Employer contributions in Norway are approximately 14.1% of gross salary, covering social security and related benefits.
EMPLOYER TAXES
14.1% (Estimated)
FAQ's
How STM Manages Employment in India
Establishing an entity in every hiring location can be cost-prohibitive. STM simplifies the process by employing and paying your Indian talent on your behalf. We handle the intricate HR procedures and employment contracts in compliance with local laws. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent globally.
Payment Processes for Indian Employees
We streamline payroll management for your Indian workforce. Employee hours, leaves, holidays, bonuses, and commissions are meticulously calculated. STM invoices you around the 15th of each month in your preferred currency, including US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD). This ensures your Indian employees receive their salaries promptly in Indian Rupees (INR). Simplify further by consolidating your global team’s salaries into a single payment.
Full-time Employees vs. Global Contractors
Contractors engage with multiple companies and are self-employed, while full-time employees focus solely on their employer and receive additional benefits like health insurance, equity, and time off. While hiring international contractors can be cost-effective, it comes with misclassification risks. Partnering with an EOR for contractor onboarding and payments ensures compliant and timely compensation.
Reliable Employee Support
Our platform offers accessible support for employees and employers with inquiries about benefits, visas, and global employment in India. Utilize the chat function to connect with our expert team. Additionally, every STM client is assigned a dedicated account manager, serving as the primary contact for global HR assistance.
