Working Life

Pay and taxes

In Norway, we usually talk about annual income. The average annual income for people in full-time employment is around NOK 500,000 a year. On average, women earn around 85% of what men earn. See Statistics Norway’s website: Earnings of all employees.

Wages are usually paid once a month on a certain date. The net pay is deposited in the employee’s bank account. Employees are also given a payslip that shows how much they have earned and how much tax the employer has deducted.

It is the employer’s duty to deduct tax from the employees’ gross pay before paying them. The employer transfers the tax deductions to the tax authorities.

Norwegian society is completely dependent on people paying different direct and indirect taxes. Among other things, these taxes finance our welfare state. All employees in Norway pay taxes to the municipality where they live and to the Norwegian state. Employers also pay taxes to the municipality and the state.

It varies how much an employee pays in taxes. Generally speaking, we can say that the higher a person’s income, the higher the percentage that he or she pays in tax. Interest expenses, how much we pay for childcare and how much we spend on travel to and from work also influence how much tax we pay. On average, employees pay around 25% of their gross pay in tax.

Facts

Tax withholding card

Everyone who works requires a tax withholding card. You can order your tax withholding card at Skatteetaten.

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.