Your first employee – what has to be in place before the first payroll?
This has to be in place: a written contract of employment no later than seven days after the start, occupational injury insurance, health and safety routines, a tax card, and an assessment of whether the hire triggers the occupational pension duty. From 1 January 2026 the separate tax withholding account is gone: the advance deduction goes directly to Skatteetaten by the first working day after payday. Budget around 30% on top of gross salary.
Draw up a written contract of employment
Every employee has to have a written contract. For employment lasting more than a month the contract has to be in place as soon as possible and no later than seven days after the start. For shorter engagements it has to be made immediately. In practice the safest course is to have it ready before the first working day. The contract has to cover the parties and the place of work, the duties, the start date, pay and the payment date, working hours, holiday and holiday pay, notice periods, any probationary period, and any fixed-term status with its statutory basis. The requirements for what the contract has to contain were substantially expanded from 1 July 2024. A template older than that is probably no longer sufficient.
Permanent and full-time is the general rule
Employees have as a general rule to be engaged permanently and full time. A fixed-term engagement requires a lawful basis. For part-time work the employer has to document the need in writing before the engagement. Where the business has employee representatives, the question has to be discussed with them. A probationary period has to be agreed in writing. It is normally a maximum of six months, and in a fixed-term engagement it cannot exceed half the duration.
Check whether the hire triggers the pension duty
A limited company hiring its first external employee in a 100% position normally becomes liable for an occupational pension, because one employee without an ownership interest in at least a 75% position is enough. The minimum contribution is 2% of salary up to 12 G, and once the scheme is required, owner-employees are covered too. That last point is the cost most often forgotten in the budget for a first hire. All three thresholds, the six-month deadline and the fine for not having a scheme are in Mandatory occupational pension
Occupational injury insurance and health and safety
Employers have to hold occupational injury insurance for their employees, and it should be in place from the start of the employment. The employer's health and safety responsibilities begin with the first employee. Businesses with five or more employees have to have at least one safety representative; with fewer than five, the employer and the employees can agree another arrangement in writing. Some industries also have to be affiliated with an approved occupational health service.
Check whether the industry has a minimum wage
Norway has no general minimum wage, but ten industries are covered by generally applicable collective agreements with binding minimum rates: the motor trade, construction, electrical work, the fish processing industry, road haulage, agriculture and horticulture, accommodation, catering and food service, passenger transport by coach, cleaning, and the shipbuilding and shipyard industry. The motor trade is new: from 15 June 2026 a minimum wage applies to all employees in the motor trade, with some exceptions. The list changes, and new industries are added. So check with the Labour Inspection Authority whether the business is covered before the pay is agreed – a generally applicable rate cannot be contracted away.
Obtain the tax card – and know what happens without one
The employer retrieves the tax card electronically. Where there is no tax card, the employer normally has to deduct 50% tax from ordinary pay. That is not a penalty but a safety rule – and it quickly becomes an unpleasant surprise for the employee where nobody retrieved the card in time.
New from 2026: no tax withholding account
The tax withholding account was abolished on 1 January 2026. The advance deduction now goes directly to Skatteetaten by the first working day after the salary payment. From 2026 the employer also has to report the salary payment date together with the deduction in the a-melding. That means the deduction falls due faster than before, and several payroll runs in the same month give several payment deadlines. What happens if the deduction is not paid is in Advance tax deductions not paid
The a-melding and employer's contributions
The a-melding is normally due on the 5th of the following month, and the employment relationship is reported in months without a salary payment too. Employer's national insurance contributions are reported monthly but paid every two months. In zone I the ordinary rate is 14.1% in 2026 – see Employer's national insurance contributions
Holiday pay and sick pay
The statutory holiday pay rate is 10.2%. Many use 12% where a fifth holiday week has been agreed – see Holiday pay On sickness the employer normally pays sick pay for up to 16 calendar days where the conditions are met. But the employee normally has to have worked for you for four weeks first – see Sick pay and reimbursement from NAV
What does the first employee cost?
A simplified example with NOK 40,000 monthly salary, zone I, 12% holiday pay and 2% pension: Gross salary NOK 40,000. Holiday pay NOK 4,800. Employer's contributions on salary NOK 5,640. Employer's contributions on holiday pay NOK 676.80. Pension NOK 800. Employer's contributions on pension NOK 112.80. Simplified monthly accrual: NOK 52,029.60. That is roughly 30% above gross salary – and insurance, equipment, software, sickness absence and other staff costs come on top.
Checklist before the first payroll
The contract is correct. Pay, type of engagement and working hours are settled. Any generally applicable minimum wage has been checked. Occupational injury insurance is in place. The pension duty has been assessed. Health and safety routines are established. The tax card has been retrieved. The payroll system and bank payments work. The advance deduction can be paid the next working day. And the a-melding will be filed correctly. The monthly routine afterwards is in A monthly checklist for the payroll run We set up the employer arrangements, the payroll system and the a-melding, and run the first payroll.
Read more
This is general guidance, not advice on your specific case. Deadlines, rates and amounts change – always check the current rules, or get in touch with us.
More on payroll and employees
- Freelancer, contractor or employee – what is the difference?
- Holiday pay – how is it calculated and paid?
- Sick pay and reimbursement from NAV – what is the employer responsible for?
- Employer's national insurance contributions – which zones and rates apply?
- Hiring in labour – when is it lawful?
- Expense claims, subsistence and mileage – what can be paid free of withholding?
- Temporary lay-offs – which rules and pay obligations apply?
- Employees abroad or foreign employees in Norway – what applies?
- A monthly checklist for the payroll run – what has to be done, and when?
Is it urgent?
We can work out what actually has to be done, what documentation exists and how quickly it can be sorted. You can also reach us in the evenings and at weekends.
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