Minimum salary and salary determination

As a general rule, it is up to the employer and employee to agree the salary that will be paid. However, many enterprises are bound by collective agreements which govern the salary that can be agreed, and minimum salary rates also apply to some sectors.


Salary determination

Salaries can be set in various ways. The most common salary forms are fixed annual salary, monthly salary or hourly pay.

Payments in kind, known as perks, are also common. Examples of this include a company car, free newspaper, mobile phone, company holiday home and company pre-school.

In the case of permanent employment, it is common to agree an annual salary.

Converting salaries

There are no statutory regulations governing how annual salaries should be converted to an hourly wage, daily wage, weekly wage or monthly wage.

The following is a common procedure used to convert salaries for employees who work 37.5 hours per week Monday - Friday:

- Monthly wage = Annual salary/12
- Weekly wage = Annual salary/52
- Daily wage = Annual salary/260
- Hourly wage = Annual salary/1950

Other calculation methods may be laid down in collective agreements or other agreements.

Minimum salary

Many sectors have minimum salary rates. These apply to everyone who works in the sectors concerned. The basis for the minimum salary rates is the 'Act relating to general application of collective agreements etc.' and associated regulations (applied collective agreements). The Norwegian Labour Inspection Authority is responsible for monitoring compliance with these rules. In the event of a breach of the rules, the authority can issue an enterprise with an order, an enforcement fine or work suspension order or report the matter to the police.

Pay and minimum rates of pay

 

The following sectors/areas have statutory minimum (salary/applied collective agreements):

- Construction sites (for construction workers)
- Electrical engineering
- Ship and marine industry
- Road freight transport
- Agriculture and horticulture
- Hotel, Restaurant and Catering
- Passenger transport by tour bus
- Cleaning
- Businesses in the fishing industry

The Norwegian Labour Inspection Authority - Minimum wage

Lov om allmenngjøring av tariffavtaler (in Norwegian only)

 

Joint and several liability for clients

Joint and several liability for clients means that contractors and subcontractors who outsources an assignment, or hiring contract workers, are liable to ensure that anyone working on the project gets the wages and working conditions they are entitled to. The joint and severable liability applies in all sectors where there is a statutory minimum wage. This means that every client in a contract chain has obligations with respect to workers further down the chain if they do not receive the statutory minimum wage from their employer.

Arbeidstilsynet om solidaransvar for oppdragsgivere (in Norwegian only)

Arbeidstilsynet om sosial dumping (in Norwegian only)

Allmenngjøringsloven om solidaransvar for oppdragsgivere (in Norwegian only)

Equal salary and employment conditions in connection with the hiring of workers from staffing enterprises 

Workers who are hired in from staffing enterprises must have the same salary and employment conditions as if they were employed directly by the hiring business. The staffing enterprise is responsible for ensuring that this is the case, but the principle of equal treatment also entails obligations for the party that hires the worker.

Arbeidstilsynet om likebehandling av arbeidstakere innleid fra bemanningsforetak (in Norwegian only)

Allmenngjøringsloven om solidaransvar for oppdragsgivere (in Norwegian only)

The equal pay provision

Under the Equality and Anti-Discrimination Act, men and women who work for the same enterprise are entitled to equal pay for the same work and for work of equal value. You can also not discriminate in terms of salary on the basis of ethnicity, religion or life philosophy, disability or sexual orientation, age or political views (the Working Environment Act).

The Gender Equality Act (in Norwegian only)

Arbeidsmiljøloven (in Norwegian only)

Information and "see to it" duty

Enterprises which use contractors or subcontractors are obliged to help ensure compliance with salary and employment conditions which follow from the applied collective agreements. This obligation to inform contractors and subcontractors, and the obligation to ensure compliance with the application regulation is aimed at clients, principal contractors, subcontractors and elected representatives.

Påseplikten etter allmenngjøringsloven (in Norwegian only)

Contact and help: 

The Norwegian Labour Inspection Authority

Did you find what you were looking for?

Thank you for responding.

Open contact form