Guide to living and working in Norway

Norway

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Country Overview

 

Population

4.7million

Unemployment Rate

2.4% (03/08)

Average annual unemployment rate 1995 – 2006

3.9%

GDP

€250bn / $391bn

GDP per head

€41,205 / $64,240 (2007)

Capital

Oslo

Major language

Norwegian

Life Expectancy (UN)

 78 years (men)

 83 years (women)

Monetary unit

1 Norwegian krone = 100 ore

Internet domain

.no

International dialing code

+47

The Norwegian economy is a prosperous stronghold of welfare capitalism. It features a combination of free market activity and government intervention. The government controls key areas through large-scale state enterprises, such as the vital petroleum sector. The country has many natural resources: petroleum, hydropower, fish, forests, and minerals. It is highly dependent on its oil production and international oil prices, with oil and gas accounting for one-third of exports. Only Saudi Arabia and Russia export more oil than Norway. As a member of the European Economic Area, Norway is a high net contributor to the EU budget. After growth of less than 1% in 2002-03, GDP growth picked up to 3-5% in 2004-07, partly due to higher oil prices. Domestic economic activity is the main driver of growth, supported by high consumer confidence and strong investment spending in the offshore oil and gas sector. Norway's record high budget surplus and upswing in the labour market in 2007 highlight the strength of its current economic position.

 

The Economy

 

 

Industries include: petroleum, gas, food processing, shipbuilding, pulp and paper products, metals, chemicals, timber, mining, textiles, and fishing.

 

Pay

 

 

Human development Index

 

 

Ranking:  2nd
Index value:  0.968


The Human Development Index combines statistics on GDP, adult literacy, average years of schooling and life expectancy to provide an indicator of human development. The HDI shown here gives the ranking of 24 countries among 177. See http://hdr.undp.org/en/ for more information.

 

Getting a job

Overview of the labour market:

Norway has a low level of unemployment compared to most other European countries. Since the second quarter of 2003, the Norwegian economy has experienced a period of strong growth, which has created a tight labour market in Norway for most industries and geographic areas. The high level of investment in oil and increased prices of traditional exports, particularly engineering products, has led to a growth in industrial production in the last few years. There is a particularly strong need for labour in machinery and electronics manufacturing.

The labour market in Norway has a sizeable public sector, which employs people of different backgrounds, both skilled and unskilled, as well as being a major employer of highly-educated professionals. The unemployment rate is lowest among people with higher education qualifications; it is also low among skilled workers in a number of occupations.

There are variations in the economy between different areas in Norway. In the North, the public sector and fishing are extremely important. Fishing employs many people in the coastal parts of Sør-Norge (Southern Norway). In Vestlandet the main industries are furniture-making, fishing, ship building, oil and shipping. The major cities such as Oslo, Bergen and Trondheim have labour forces that work within a wide range of sectors.

Norway also has one of the highest employment rates in Europe in terms of participation in the workforce. Despite this, the Norwegian labour market is split along gender lines; the public sector dominated by women and men are more likely to work in the private sector.

Applying for a job:

Your application should be typewritten and no more than two A4 pages long. Companies will expect to see your CV and references, and applications should be sent by post or e-mail. Your CV should ideally cover one side of A4 and include the following points:

  • Personal details: your name, address, telephone numbers, e-mail address, date of birth, nationality and civil status. 
  • Training: formal qualifications. 
  • Norwegian degree or education levels.
  • Work experience: this is an extremely important part of your CV. Include a brief description of each relevant job/position. List your latest training and working experience first.
  • Other qualifications: include verbal and written language skills and IT skills. Mention any positions of responsibility you have held, and other relevant qualifications. 
  • Interests.
  • References: it is extremely important to make sure you provide at least two references from your current and/or previous employment, stating their position and contact details. Ideally, your referees should be able to speak English.

 

Conditions and rights

Employment law:

Norway is a signatory of the European Economic Area (EEA) agreement. It is a highly affluent country with a strong economic reliance on offshore gas and oil. The government has a pact with the social partners and there is an ongoing review of working environment legislation. An important aspect of labour relations is the existence of compulsory mediation to settle disputes.

Working hours:

Standard hours: Working hours may not exceed nine hours a day or 40 hours a week. Shorter working hours may be agreed in a collective contract or in an individual contract. Many Norwegians typically work a 37.5-hour week.

Overtime: Work in excess of 40 hours a week is considered to be overtime. For overtime, you must be paid a minimum of 40% more than your standard hourly wage. People are not normally allowed to work more than 200 hours of overtime a year.

Work on Sundays and public holidays: If you work on a Sunday, you are entitled to a day off on the next Sunday. You must be paid extra for working on Sundays and public holidays.

Holidays and leave: You are entitled to four weeks’ plus one day’s holiday in a holiday year. An entitlement to four extra days off has been agreed in a number of industries and wage areas. This means that most employees are entitled to five weeks’ holiday. The holiday year follows the calendar year. Employees aged over 60 are entitled to an extra week of holiday.

You earn your entitlement to holiday pay in the calendar year preceding the year in which the holiday is taken. You have to have been employed for the entire previous year to be entitled to holiday pay equivalent to your full wage. If you have not been employed for long, your holiday pay will be set in relation to how long you have been employed at the company. You are not entitled to your regular wage during your holidays.

It is not up to the employee to decide when to take holiday. The employer is entitled to decide this, but is obliged to discuss it with the employee first. You are entitled to take three consecutive weeks of holiday between 1 June and 30 September.

Norway Public holidays:1st January, Palm Sunday, Maundy Thursday, Good Friday, Easter Sunday, Easter Monday, Ascension Day, 1st May, 17th May, Whit Sunday, Whit Monday, 25th and 26th December.

 

Contracts

Types of employment:

You have to be 15 or over in order to enter into a work contract. When employing people under the age of 18, work must not impede schooling. As an employee, you are entitled to a work contract for both permanent and temporary employment, whether full time or part time. Temporary employment is restricted and may be used for seasonal work and abnormal workloads at a workplace. The most common working conditions involve 37.5 or 40 hours’ work a week, with five weeks’ holiday.

Employment contracts:

A work contract should include the following:

  • Name and address of the employer and employee 
  • Date the work contract comes into force 
  • Name of the workplace 
  • The employee’s duties and tasks 
  • The employee’s position 
  • Nature of the employment: temporary, part-time or permanent 
  • Any trial period and its length 
  • End date for the contract 
  • Wage and payment systems 
  • Working hours, any overtime arrangements 
  • Holidays, holiday pay 
  • Relevant collective/wage contracts

As a rule, every employment begins with a trial period. This must not exceed six months. Any trial period and the length of the trial period must be agreed in advance. Both the employer and the employee are entitled to a notice period of two weeks over this period. 

 

Work permits and visas

Work permits:

Citizens of full European (EFTA, EEA) Member Countries: are able to live and work in Norway without a visa or work permit. Citizens of the EEA/EFTA can freely travel to Norway and can start working as soon as they arrive. As a citizen of the EEA/EFTA, you can stay and work in Norway for up to three months without having to apply for a residence permit. Citizens who are seeking employment in Norway may reside in Norway for six months without a residence permit.

Citizens from ‘new’ EU Member Countries: (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia) need a work permit (i.e. residence permit stating entitlement to accept work) before they can start working. Job-seekers can apply for the permit both at Norwegian embassies and consulates in the job-seeker’s home state or by going to a police station in Norway in person. Employers may also apply on behalf of the worker.

Non-EU citizens: must obtain a work visa or permit to work in Norway.

Visas:

Foreign nationals who wish to travel to Norway must, as a rule, have a visa. The type of visa you require depends on the purpose of your visit. The conditions for obtaining a visa vary depending on the type of visa. A visitor's visa gives you the right to stay for 90 days in the course of a six month period. If the intention is to stay for more than 90 days, then you must apply for a residence permit.

Norway is a signatory of the Schengen Treaty. The 15 Schengen countries are: Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Greece, Luxembourg, Netherlands, Norway, Portugal, Spain and Sweden. With a Schengen visa, you may enter one country and travel freely throughout the Schengen zone.

Passport holders from the following countries do not need a visa to visit Norway or other Schengen countries for visits of up to 3 months: Andorra, Argentina, Australia, Bolivia, Brunei, Bulgaria, Canada, Chile, Costa Rica, Croatia, El Salvador, Guatemala, and Honduras. Israel, Japan, Republic Of Korea, Liechtenstein, Malaysia, Mexico, Monaco, New Zealand, Nicaragua, Panama, Paraguay, Romania, San Marino, Singapore, Switzerland, United States, Uruguay, Vatican and Venezuela.

Nationals of countries not mentioned above will need a visa to visit Norway. To apply for visas contact your nearest Embassy or Consulate of Norway.

 

Tax, social security and healthcare

Taxation system:

In Norway income tax and wealth tax are direct taxes. Income tax is paid directly as a percentage of income; whereas wealth tax is a tax on assets, such as a house, bank deposits etc. Taxes are paid both to the state and the local municipality. In addition, a premium is paid to the social security system to finance public hospitals, medical treatment and various social benefits.

The most important indirect tax is Value Added Tax (VAT), which is a general tax charged on sales within the country and on imports. VAT is charged on most goods and some services, and applies to all stages in the chain of production and distribution. Any person engaged in trade or business is required to register, charge and pay VAT on goods he/she supplies. VAT is presently calculated at a rate of 12 to 24% of net price. All self-employed persons are obliged to add this tax to sales of goods and services; it is a punishable offence to not pay this tax in Norway.

Your employer in Norway is obliged to deduct tax from your wages before you are paid. Once you have found employment in Norway you must obtain a tax card from your local taxation office as soon as possible. The tax card states what percentage of your income your employer must deduct in tax. If you start work without a tax card, your employer is obliged to deduct 50 % tax.

National insurance contribution

  • Earned income: 7.8 %
  • Pension income: 3.0 %

Lower limit for paying national insurance contribution

  • NOK 39,600

Surtax

  • Level 1 - Amounts exceeding  NOK 420,000 / 682,500:  9.0 %
  • Level 1 - Finnmark and Nord-Troms NOK 420,000 / 682,500:  7.0 %
  • Level 2 - Amounts exceeding NOK 682,500:  12.0 %

Tax on ordinary income

  • Persons:  28.0 %
  • Persons in Finnmark and Nord-Troms:  24.5 %

Maximum marginal tax rates 

  • Ordinary income:  28.0 % 
  • Pay:  47.8 %

Wealth tax

  • Municipality   NOK 0  -  NOK 350,000:  0 %
  • Municipality   NOK 350,000+:  0.7 %
  • State   NOK 0  -  NOK 350,000:  0 %
  • State   NOK 350,000  -  NOK 540,000:  0.2 %
  • State   NOK 540,000+:  0.4 %

 

In Norway, it is up to each municipality to establish a tax on real property. Contact your local municipality to find out if you have to pay property tax.

All incomes from capital are taxable with 28% except dividends taxable with 11%.

Social security system:

Participation in the Norwegian social security system is mandatory and financed primarily through taxation. Exemptions may be granted for anyone paying this type of insurance in their country of origin. You do not need to apply or register. If you are an employee in Norway, you (and your immediate family) are entitled to the same rights as Norwegian citizens through the Norwegian National Insurance. Your employer will register you, and your contributions will be part of the tax you pay.

Norwegian National Insurance covers situations such as illness, childbirth, care for the elderly, children and pensioners. Social insurance benefits are means-tested, and there are no national standards. Funding is granted following review of your case at the local social/NAV office, based on national/political guidelines.

Health systems:

Norwegian National Insurance covers the entire population and provides public health care which is financed by the Norwegian State and managed by the regions. A charge is payable for visits to doctors, but hospital stays are mostly free of charges.

The Norwegian health service is based on a decentralised model. The counties and municipalities are responsible for the running of the health service within the budgeted frameworks. The municipalities are responsible for the primary health service and the counties are responsible for the public dental service. Chemists are privately owned but run their businesses under stringent public control.
There are general practitioners who have contracts with the public sector/municipality.

All citizens registered at the Folkeregister (Registry Office) are entitled to their own permanent doctor. Your permanent doctor has to give you an appointment quickly, at publicly set prices. This is a voluntary arrangement.

Private health services: A number of private hospitals and health institutions have been established as a supplement to public institutions and services. There are also semi-private arrangements whereby, for example, physiotherapists operating privately perform services on behalf of public health authorities.