When working in Norway, you and your employees might be required to contribute to the social security schemes. The Norwegian National Insurance Scheme (Folketrygden) is a fundamental part of Norway’s welfare system, providing financial and social security to residents. It covers essential benefits such as healthcare, sick pay, child benefits, pensions, and other social security services.
To be entitled to these services, you must either have compulsory membership or apply for voluntary membership under specific conditions.
Who is covered by the Norwegian National Insurance Scheme?
Compulsory membership
Under the Norwegian Social Security Act, the following individuals are automatically enrolled in the National Insurance Scheme:
- Residents of Norway for more than 12 months – If you move to Norway and stay for at least 12 months, your membership begins on your entry date.
- Employees working in Norway or on the Norwegian continental shelf.
- Norwegian or EEA citizens working on a Norwegian-registered vessel, except those working in catering on a tourist ship registered in the Norwegian International Ship Register (NIS).
- Norwegian or EEA citizens employed abroad in service of the Norwegian state.
- Norwegian or EEA students funded by the Norwegian State Educational Loan Fund (Lånekassen) studying abroad, except in Nordic or EU/EEA countries, where they must join the local social security scheme.
Also read: Employer's National Insurance contribution in Norway
Voluntary Membership
If you do not meet the criteria for compulsory membership, you may apply for voluntary membership if you:
- Stay in Norway between 3 and 12 months and have strong ties to the country.
- Are a Norwegian citizen living abroad but wish to remain part of the system.
- Have been a member for at least 3 of the last 5 years and are temporarily working abroad.
National insurance contribution
Being a member of the National Insurance Scheme means you are required to pay National Insurance contributions. These contributions are calculated as a percentage of your gross income from salary or pension:
- Employees: 7.9%
- Self-employed individuals: 11.1%
- Employers: Contributions range between 0% and 14.1%, depending on location and industry.
- High earners: Since 2023, an additional 5% contribution applies to employment income exceeding NOK 750,000.
GUIDE: GLOBAL MOBILITY
Download guide and learn what you need to know before sending your employees to work in Norway.
Exemptions from National Insurance contribution
Norway has signed National Insurance agreements with many countries. These agreements regulate your National Insurance membership, specifically which country will provide you with coverage. Generally, you should only be covered by National Insurance in one country to avoid double payment.
The agreements state that you can be exempt from paying National Insurance to Norway if you can document that you are a member of the National Insurance Scheme in your home country for the period you stay in Norway.
It is important to note that most foreign-flagged ships are outside the jurisdiction of the Internal Norwegian National Insurance Act even if the operations take place on the Norwegian continental shelf. No National Insurance charge can be levied upon the employer or the employee in these cases.
Please note that there are special rules for Canadian and US citizens. You will only be granted a partial exemption for these countries.
Norway has signed National Insurance agreements with the following countries:
- EEA countries
- Nordic countries (Denmark, Finland, Iceland and Sweden)
- United States
- UK
- Canada
- Australia
- India
How to pay National Insurance contribution
National Insurance contribution is usually deducted from your pay or pension through your tax deduction.
If you do not pay taxes in Norway, but you are a member or have rights under the Norwegian National Insurance Act, NAV determines and collects national insurance contributions. The amount will be collected by the authorities based on your submitted tax return.
A1 form
For citizens of European countries, it is the A1 form that proves that you pay social contributions in another EU country.
The A1 form must be submitted to the National Insurance Authorities in Norway (NAV). NAV will validate the exemption and inform the Tax Authorities not to levy any National Insurance fee when calculating your tax.
Also read: The Norwegian tax report system – a-melding
When does membership end?
Your membership in the National Insurance Scheme may end if:
- You work or stay abroad for an extended period (typically more than 12 months for work or 6 months per year for two years).
- You fail to apply for voluntary membership while working abroad.
If your membership ends, you lose the rights and benefits provided by the National Insurance Scheme and are no longer required to pay contributions.
The importance of the Norwegian National Insurance Scheme
The Norwegian National Insurance Scheme is a crucial part of the country’s welfare system, ensuring financial security for its residents. Whether you are an employee, student, or expatriate, understanding your membership status and contribution obligations is essential to securing your rights and benefits.
If you need more details we advise you to consult a tax advisor to ensure compliance with Norwegian regulations.
GUIDE: GLOBAL MOBILITY
Download guide and learn what you need to know before sending your employees to work in Norway.
