The Norwegian Parliament has passed updated regulations that will remove companies' previous right to establish internal age limits for pension. Starting January 1, 2026, all companies must follow the general retirement age of 72 years, with very few exceptions. Companies that already have agreements with lower retirement ages can keep them for up to 3 years. This article explains the change, the exceptions and practical consequences for the employer.
How the rules are changing
The law sets a retirement age for when employers can fire employees because of their age. The general retirement age was raised from 70 to 72 years in 2015.
Until now, it has been permissible for companies to set a lower age limit, provided that the following conditions were met:
- the limit had to be made known to the employees, practiced consistently,
- the employees had to be entitled to a satisfactory occupational pension scheme,
- and the employer had to have discussed the lower age limit with the employee representatives.
This option is now being removed. The reason is that the government retirement age has been increased to 72 years, so that there will be a common age limit across Norwegian employees. Further, there are some challenges associated with company-internal age limits. Among other things, the requirement for consistent practice means that employers in some cases must dismiss employees they wish to retain.
Exceptions - when is it allowed for companies to still set lower retirement ages?
A narrow exception rule will still apply, where company-internal age limits are permitted only in occupations where it is strictly necessary for reasons of health or safety in the workplace. The exception rule is intended to cover occupations with particularly high demands on physical or mental capabilities, where documented health or safety risks indicate a lower age limit.
The government emphasizes that this shall be a very narrow exception rule and will closely monitor how it is practiced to avoid misuse.
Transition period for existing agreements
Companies that already have collective agreements with lower retirement ages get a transition period. These existing collective agreements can continue until they expire, but for no more than three years after the new regulations enter into force.
After January 1, 2026, it will be illegal to agree to a retirement age lower than 72 in new contracts and collective agreements, unless there are serious health and safety reasons that meet the strict exception rule.
Practical consequences for employers
Employers should review their existing collective agreements and contracts to identify any company retirement age limits that must be amended. For companies that believe they have a need for a lower retirement age for health and safety reasons, it is recommended to contact a legal adviser to assess whether they meet the requirements for an exception.
Key dates to remember
- January 1, 2026: The amendment enters into force
- Until January 1, 2029: Existing collective agreements with company retirement ages can continue (maximum three years)
- From January 1, 2026: New agreements with retirement ages below 72 are unlawful, unless the health and safety exception applies
If you have questions about this or Norwegian labor law rules in general, feel free to reach out.
