Working Life

Wages and taxes

It is common in Norway to refer to annual salaries. The average gross salary for all full-time employees is 500 000 crowns a year. Women on average earn a little less than men. Sjå SSB si nettside: Lønn, alle ansatte.

It is customary to receive salary payments on a set date each month. Net wages are deposited directly into the employee’s bank account. The employee also receives a wages slip showing how much he or she has earned and how much tax has been paid.

The employer is required to deduct tax from the employee’s gross wages before paying the employee. The employer transfers the tax to the government.

The Norwegian welfare model is completely dependent on inhabitants paying different taxes and duties. These taxes and duties help finance our social benefits. All employees in Norway pay tax to the municipality where they live and to the federal government. Employers also pay taxes to the municipality and federal government.

The amount of tax paid by each worker varies. Generally speaking, the higher the income, the higher the percentage of tax paid. But aspects such as the amount of interest expenses, childcare and job-related travel expenses we pay also determine how much tax we must pay. On average, employees pay around 25% tax on their gross income.

Facts

Tax withholding card

Everyone who works requires a tax withholding card. You can order a tax withholding card at www.skateetaten.no.

Wage slip

Everyone with paid work receives a wage slip. The wage slip is a receipt of tax paid.

Gross income

This is the income you receive before taxes, pension payment and other deductions have been taken out.

Net wages

This is the income you receive after taxes, pension payment and other deductions have been taken out.

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