Country Guide
Employer of Record in Norway (EOR in Norway)
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Hire Globally, Pay Locally, Expand Effortlessly
Norway, known for its strong economy and high living standards, offers ample opportunities for international businesses. However, entering the Norwegian market requires navigating complex labor laws and tax regulations. An Employer of Record (EOR) in Norway can help simplify this process, acting as your local partner to ensure smooth market entry and ongoing compliance with all relevant regulations.
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How an Employer of Record in Norway Eases Operational Setup in Just 3 Steps
Step 1 – Comprehensive Planning & Needs Assessment
Engaging with an EOR in Norway, such as INS Global, starts with a detailed assessment of your business needs. This involves understanding the number of employees, their roles, and your timeline for expanding into Norway. The EOR then tailors its services to meet your specific requirements, ensuring seamless integration.
Step 2 – Streamlined Setup, Recruitment & Onboarding
When you establish a team in Norway or relocate existing staff, an EOR handles all legal processes. This includes managing visas, work permits, payroll, and contract management, while ensuring full compliance with Norwegian labor laws. Acting as your legal employer in Norway, the EOR saves you the time and cost involved in setting up a local entity.
Step 3 – Ongoing Management & Compliance Assurance
Once your employees are up and running in Norway, an EOR manages ongoing HR and payroll functions. This includes salary processing, managing employee benefits, and ensuring compliance with health insurance and social security contributions. The EOR acts as the HR liaison between you and your Norwegian team, handling administrative tasks and addressing employee concerns, allowing you to focus on business growth.
PEO/EOR vs Company Incorporation
The Advantage in Figures
PEO/EOR
Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
The Benefits of a Norwegian EOR On Your Business
The Right Setup
An EOR handles the intricate process of entering the Norwegian market by managing the complex tax systems and labor laws, ensuring compliance from the start.
Full Compliance
Norway’s regulations can be demanding, but EORs have the expertise to ensure your business complies with local tax laws, labor regulations, and social security contributions.
Liability Support
As your legal employer in Norway, an EOR reduces the risks associated with employment regulations, ensuring full compliance.
Business-Focused Priorities
By outsourcing HR tasks such as recruitment, payroll processing, and tax management to your EOR, you can focus on your core business activities.
Cost Streamlining
EOR services are typically more cost-effective than setting up a local subsidiary, especially for smaller teams or temporary projects, helping you avoid initial incorporation costs and ongoing administrative burdens.
Choosing Between an EOR and Company Incorporation in Norway
1
Speed – The process of setting up in Norway is faster with an EOR like INS Global, enabling you to begin operations and hire staff much quicker. Company incorporation can take several months, whereas an EOR can have your team operational within weeks or even days.
2
Compliance – Both EORs and subsidiaries must adhere to Norwegian tax laws and labor regulations. EORs bring specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.
3
Cost – For smaller teams or temporary needs, EOR services can be more cost-effective than establishing a subsidiary, as they help you avoid upfront incorporation expenses and ongoing administrative costs. For larger companies, EORs provide efficient integration into multi-country payroll systems.
4
Control – While incorporation offers complete control over HR, finances, and operations, EORs provide similar control over your workforce while reducing administrative responsibilities and liability.
5 Essential Factors for Selecting the Best Employer of Record in Norway
Choosing the right EOR in Norway is crucial for successful market entry. Consider these 5 key factors:
- Experience and Track Record – Look for an EOR in Norway with a proven track record and a strong industry reputation, such as INS Global. Client testimonials and industry awards can indicate reliability.
- Comprehensive Service Offerings – Ensure the EOR in Norway offers all necessary services or can customize their offerings to meet your needs. This may include visa and work permit support, payroll processing, tax compliance, and navigating Norway’s tax and labor regulations.
- Scalability – Choose an EOR in Norway that can scale its services as your business grows. They should be able to manage an increasing workforce and evolving business needs.
- Clear Communication and Transparency – Opt for an EOR in Norway known for clear and consistent communication. They should keep you informed about regulatory updates, impending deadlines, and potential issues. Look for a dedicated point of contact and online tools for easy access to vital information.
- Transparent Cost Structure – Compare the pricing models of various EOR providers in Norway. Ensure their fees are transparent and competitive, with no hidden costs. Third-party advice can help you get the best value for your EOR in Norway.
INS GUIDES
Check Our Norway Labor Law Guide
Norway: Labor Law Overview
Employment Contracts In Norway
Contracts must be in Norwegian or English and outline employment terms including salary, benefits, working hours, termination clauses, and minimum wage requirements. An EOR in Norway ensures your contracts comply with local labor laws.
Working Hours
Standard work hours in Norway are usually 37.5 hours per week with limits on overtime. EOR services assist in tracking work hours and ensuring compliance with overtime regulations.
Probationary Periods
Probation periods in Norway typically last up to 6 months. An EOR can help set up probation periods that comply with local laws while allowing you to assess new employees.
Health Insurance and Social Security
Both employers and employees contribute to health insurance and social security schemes. Your EOR handles these contributions as part of the payroll process.
Severance Pay
Severance pay is required in certain situations such as termination without cause. An EOR guides you through severance pay practices and calculations to ensure compliance with local laws.
Paid Leave
Employees in Norway are entitled to various types of paid leave including public holidays, annual leave, sick leave, and maternity leave. An EOR manages leave requests and ensures proper compensation according to Norwegian labor laws.
Tax Law
Employers are expected to organize tax and payroll for their employees and register them for the national “Pay As You Go” tax structure, withholding a portion of their employees’ earned income to go towards this scheme.
There is also a national 2% levy on earned income to fund the National Health Scheme
Employers are expected to give an amount equivalent to 10% of their employees’ earned income towards the national pension scheme.
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Frequently Asked Questions
An EOR handles all legal, HR, and compliance tasks, allowing businesses to enter the Norwegian market quickly without needing to establish a local entity.
Using an EOR in Norway can be more cost-effective than setting up a local subsidiary, eliminating initial incorporation costs and reducing ongoing administrative expenses.
Yes, a Norwegian EOR manages the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.
Industries such as oil and gas, technology, and fisheries benefit significantly from EOR services in Norway due to the specialized knowledge required for compliance.
EORs have local experts who stay updated on regulatory changes, managing all compliance aspects to ensure your business adheres to Norwegian tax laws.
While the EOR is the legal employer, you retain significant control over day-to-day management and operational decisions regarding your employees.
A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.