The Norwegian Social Security system, also known as the National Insurance Scheme (NIS), is a cornerstone of the country’s welfare model. Both employees and employers contribute significantly to finance benefits like healthcare, pensions, sick leave, and unemployment insurance. In this guide, we’ll break down how much employees and employers pay, who may be exempt, and how these contributions impact your take-home pay and corporate costs.
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📌 Employee Social Security Contributions
All employees working in Norway, including many foreign workers, are required to pay social security contributions unless they qualify for an exemption under a bilateral agreement. These contributions are deducted directly from your salary along with income tax.
- Standard Rate: 7.8% of personal income (salary, benefits, sick pay, etc.).
- Reduced Rate: 5.1% for individuals under 17 or over 69 years old.
- Exemption Threshold: Income up to NOK 99,650 is exempt. Beyond this, contributions are capped at 25% of income above the threshold.
- Non-Deductibility: Unlike income tax, social security contributions are not deductible from taxable income.
💼 Employer Social Security Contributions
Employers in Norway carry a substantial burden by contributing to the social security system on behalf of their employees. These costs must be factored into payroll budgets.
- Standard Rate: 14.1% of total gross salary and benefits.
- Geographic Adjustments: Employers in sparsely populated areas may pay lower rates to encourage job creation.
- Abolishment of Additional Rate: From January 1, 2025, the extra 5% contribution on income exceeding NOK 850,000 will be removed, reverting to the standard 14.1% rate.
- Tax Deductible: Employer contributions are deductible for corporate tax purposes.
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🌍 Exemptions for Foreign Workers
Some foreign employees may be partially or fully exempt from Norwegian social security contributions:
- Workers covered by social security in their home country under an agreement (e.g., EEA, USA, Canada, India).
- Employees with approved exemption applications submitted to the Norwegian Tax Administration.
Exempt workers must provide proper documentation to their employers to avoid unnecessary deductions.
📊 Example: Combined Employee and Employer Costs
Consider an employee earning NOK 700,000 in 2025:
| Component | Amount (NOK) | Notes |
|---|---|---|
| Employee Contribution (7.8%) | 54,600 | Deducted from salary |
| Employer Contribution (14.1%) | 98,700 | Tax deductible for employer |
| Total Social Security Contributions | 153,300 | Combined employee + employer |
⚖️ Key Takeaways for Employees & Employers
- Employees contribute 7.8% of income (5.1% if under 17 or over 69).
- Employers pay 14.1% of gross salary; reduced rates may apply in remote regions.
- From 2025, the extra 5% surcharge on high salaries will be abolished.
- Exemptions may apply under international social security agreements.
- These contributions fund Norway’s world-class welfare system, including healthcare, pensions, and unemployment benefits.
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