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Overview of Norway

Norway is located in the North of Europe next to Sweden and is part Scandinavia. It is well known for its mountains, glaciers and fjords. The monetary unit is Norwegian Crone. The Nobel Peace price is awarded in Norway by a Norwegian committee. Its population is 5.3 million and it is one of the most scarcely populated countries on earth. The capital of Norway is Oslo. Norway is a constitutional monarchy with King Harald as the reigning monarch. Norwegian – which is the official language – has 2 written forms: Bokmål and Nynorsk.

Norwegian people are not vocal about their own achievements and are unimpressed by others. They value people for their honesty, their respect and their goodness. Business relationships are purely transactional and there are no emotions involved. Norwegians appreciate business partners who are reliable and punctual and stick to the deadlines. Be honest and open in your dealings with Norwegians, bartering is not common.

Currency of Norway

  • Norwegian Crones

Health Insurance and the Social Security system of Norway

Health insurance in Norway is provided by the government. It is universal and automatic for all residents of Norway. An employee pays 8.2% from his pay as a contribution. Private health insurance is virtually non-existent as there is a very small market – having private healthcare does not give one any other benefits apart from shorter wait time.

Healthcare covers the following:

  • costs associated with pregnancy and childbirth

  • emergency services and transport

  • medical treatment of children under 16

  • medical treatment of work-related injuries

  • general healthcare costs such as doctors’ appointments and prescription medication (partially covered)

  • treatment abroad if necessary

  • rehabilitation

  • dental care services for children up to 18 years of age and other prioritized groups (such as people with chronic diseases, patients with chronic mental disabilities, and nursing home patients)

  • dental care for 19–20-year-olds (partially covered)

  • braces for children (partially covered)

  • psychological care for children under 18 years of age

Employer cost of Norway

The cost for an employer to hire someone in Norway is a plus of 14.10% to the gross salary.

Salary and bonuses of Norway

Regular employees are paid once a month.

Bonuses are not paid as a requirement but can be agreed upon for reaching requirements.

Public Holidays in Norway

  • In Norway, there are 11 public holidays.
  • January 1st – New Years Day
  • Maudy Thursday – Thursday before Easter
  • Friday before Easter – Good Friday
  • Easter Monday
  • May 1st – Labour Day
  • May 17th – Constitution Day
  • 39 days after Easter – Assumption of Mary
  • 49 days after Easter – Pentecost
  • 50 days after Easter – Whitmonday
  • December 25th – Christmas
  • December 26th – 2nd Day of Christmas

Working Hours in Norway

The regular work week in Norway is 37.5 hours.

The regular work day is from 8:00 until 16:00.

Overtime is only permitted if there is an exceptional reason and may not be a permanent arrangement. Limits for overtime as no more than 10 hours in 7 days, 25 hours in 4 consecutive weeks and no more than 200 hours in one year. When working overtime, one is entitled to at least 40% extra pay, a lower percentage is not permitted.

Vacation in Norway

In Norway one receives a minimum of 25 days of vacation a year.

Instead of paid leave, employees in Norway receive holiday pay. In one’s first year of employment, holiday is not paid. Holiday pay is earned during the year and is paid out instead of salary when the employee goes on holiday next year. Employers must “set aside” the holiday pay for their employees as it accumulates throughout the year.

Holiday pay is a minimum of 10.2% of one’s salary.

Sick Leave in Norway

An employee can be off for 3 days without a medical certificate. After the third day, a certificate is required. To be able to receive sickness benefits from the National Insurance system, a medical certificate has to be presented. One receives sick pay from the first day onwards for a period of up to 260 working days (52 weeks). The sickness benefit is equal to 100% of an employee’s pensionable income. For the first 16 days of an illness, the sickness benefits are paid by the employer and after that, by the National insurance system.

Termination/Severance in Norway

A termination must be given in writing to the employee. A termination can only be given if it is objectively justified. The notice period of at least one month is required, be it the employee or the employer who is terminating the contract. Depending on the employee’s age or seniority, a notice period may be longer.

If an agreement is reached with the employee beforehand, then a severance payment can be used to substitute a notice period but only if the employee agrees with it.

There are no laws regarding a severance pay in Norway.