Norway Employer Tax Calculator (arbeidsgiveravgift)
Work out the employer's National Insurance contribution for your company, based on payroll sum and the tax zone the business is registered in.
How to use the calculator
- Enter the total payroll sum (gross salary and other contribution-liable benefits) for the year.
- Choose the tax zone the business is registered in with the Norwegian Tax Administration.
- The calculator shows the employer's contribution and the total payroll cost including the contribution.
How the employer's contribution is calculated
Zone Ia: reduced rate (10.6 %) until the savings reach the allowance, then full rate (14.1 %) on the rest
Worked example: a payroll sum of 1,000,000 kr in Zone I gives 1,000,000 × 14.10 % = 141,000 kr in employer's national insurance contribution, and a total cost of 1,141,000 kr. The contribution is charged on salary, holiday pay and most benefits in kind — not just base pay. The rate varies geographically from 14.10 % in Zone I down to 0 % in Zone V, so the same hire can cost very differently depending on where the business is located.
Norway is divided into seven contribution zones with different rates, from 14.1 % in zone I to 0 % in parts of zone V (Finnmark and North Troms). The zone is determined by where the business is registered, not where the employee lives. Zone Ia is an intermediate zone: businesses here can use the zone II rate (10.6 %) until the difference from the full rate exceeds an allowance of 850,000 kr, after which the full rate applies to the excess.
Frequently asked questions
How do I know which zone my business is in?
The zone is determined by the municipality where the business is registered, and appears in the Norwegian Tax Directorate's annual zone notice, available at skatteetaten.no. The Tax Administration sets the correct zone automatically based on the business's registered address.
What's the difference between zone I and zone Ia?
Zone Ia covers certain municipalities surrounding the major cities and should technically have the full rate (like zone I), but can use the lower zone II rate until an allowance for de minimis state aid is used up. If the payroll sum is high enough, the differential rate ends up fairly close to zone I in practice.
Is the employer's contribution the same as tax on salary?
No. The employer's contribution is paid by the employer, comes on top of gross salary, and isn't deducted from the employee's payslip. Income tax and National Insurance contributions, by contrast, are deducted from the employee's own salary — see the income tax calculator for that.