Overtime pay in Norway—Key rules for employers

Norwegian labor law contains clear rules on working hours and overtime pay. Many foreign employers are surprised to learn that these rules are mandatory and very strict. Below, we outline the general regulations, common exceptions, and what employers must know to stay compliant with Norwegian law.

What counts as overtime work?

Under the Norwegian Working Environment Act (WEA), normal working hours are limited to 9 hours per day and 40 hours per week. Any hour worked beyond these statutory limits is considered overtime. If you have agreed reduced working hours, overtime first applies once the statutory limits are exceeded.

However, some industries have lower thresholds due to collective agreements or general application regulations, thus lowering the limits for when overtime hours become applicable.

Overtime must be based on a specific and temporary need and cannot be used as a permanent staffing solution.

Also read: The rules for overtime and work hours in Norway

How much overtime pay must be paid?

Overtime work must be compensated with an additional supplement of at least 40% of the employees’ ordinary hourly pay. Many employers choose to pay more, and collective agreements often require higher rates.

Payment in the form of time off in lieu is possible if agreed, but the 40% supplement must still be covered.

Leading and particularly independent positions may be exempt from overtime pay

Employees in leading positions (e.g., senior managers) and particularly independent roles may be exempt from the statutory working hour provisions, including overtime pay.

However, these exemptions are interpreted narrowly. The role must involve significant autonomy over working hours and responsibilities. Simply giving an employee a managerial title or fixed salary is not enough.

Collective agreements and general application rules—when stricter overtime rules apply

Some industries are covered by general application of collective agreements (allmenngjøring), which can impose stricter working hour limits and overtime rules. If your company operates in such a sector (for example, construction, electrician, shipbuilding, or cleaning), you must comply with those rules even if you are not party to a collective agreement.

Overtime when using average calculation of working hours

The WEA allows for an average calculation of working hours over a period, meaning employees can work more in some weeks and less in others without triggering overtime for each extra hour.

Such arrangements require either:

• An agreement with the employee,
• An agreement with employee representatives when the company is bound by a collective agreement, or
• Approval from the Labour Inspection Authority, depending on the scope.

When average calculation of working hours is applicable, hours exceeding the agreed average threshold count as overtime and must be compensated.

Also read: Key considerations for drafting Norwegian employment contracts

Key takeaways on overtime rules for employers

• Overtime rules are mandatory unless a clear exemption applies.
• The 40% supplement is a minimum requirement.
• Exemptions for leading or independent roles must be accurately assessed.
• Industry-specific regulations or collective agreements may impose additional obligations.
• Average calculation can provide flexibility but still includes overtime obligations.

Avoid costly mistakes—get professional guidance early

If you are an employer in Norway, it is crucial to review your employment contracts and actual work patterns to ensure compliance with overtime regulations. Non-compliance can result in significant back pay claims and penalties that could impact your business.

At Magnus Legal, we assist international and Norwegian businesses with navigating Norwegian employment law, including working time and overtime issues.

Contact us if you need advice on structuring working hours, drafting compliant contracts, or assessing whether exemptions apply to your workforce.