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JOBS

Working in Norway: A weekly roundup of the latest jobs news and talking points

Every week The Local brings you a roundup of the latest jobs news and talking points related to working life in Norway. This week we're looking at election promises and what they mean for you, an increase in jobs and the results of last week's poll.

Working in Norway: A weekly roundup of the latest jobs news and talking points
Here's this week's roundup of working life. Photo by Mario Gogh on Unsplash

Conservatives pledge to create more private-sector jobs

As part of its seven election promises, the Conservative Party has pledged to increase the number of private-sector jobs in Norway should they get re-elected. 

The majority of foreign residents working in Norway are employed in the private sector, so more jobs in this sphere should come as welcome news if Solberg can make good on the promise. 

One of the strategies the Conservatives will employ to ensure more jobs in the private sector is to scrap a wealth tax on working capital. You can read about the wealth tax here in last week’s roundup and why salmon baron and Norway’s sixth richest man, Gustav Witzøe, is opposed to it. 

READ ALSO: What Erna Solberg’s seven election promises mean for foreign residents in Norway

Labour promises to cut the number of part-time jobs

Labour has pledged, if it is elected, to cut the number of part-time jobs in Norway and ensure that more people are entitled to full-time and permanent positions. 

“We must change the legislation so it is clearer that you are entitled to a full and permanent position,” party secretary Kjersti Stenseng told VG earlier this week. 

There are 500,000 part-time workers in Norway. Many of them work more than one part-time job. 

Under the Labour pledge, it will be down to employers to prove why a part-time position is more relevant to the employee than a permanent full-time one. 

Just under half think they are more effective working from home than in the office

A survey carried out by the Norwegian Property Association has revealed that almost half of the respondents, regardless of age, think they concentrate better while working from home. 

Additionally, 75 percent said that their creativity and their interaction with colleagues has decreased. Half also said that they believe professional development had deteriorated.

Number of new jobs increases 

In the last two months, the number of jobs in Norway has increased by just over 45,000, according to figures from Statistics Norway.

Overall, jobs are up 2.2 percent in the second quarter of 2021 compared to the same time last year. 

The rise comes after four months of job losses from January through till May.  

Accommodation and catering saw the most significant increase in the number of new jobs. From May to June, 15,000 new jobs were created in this sector. However, despite the rise in jobs, the industry is still to return to pre-pandemic levels. There are still 24 percent fewer jobs in the sector compared to June 2019. 

Poll: Should foreigners in Norway join a union? 

The answer, according to those who responded to the survey, is a resounding yes. 

A smidge under 80 percent of all people who answered the poll on Twitter said that foreign workers should join a union, while just over 20 percent said they shouldn’t. 

Those who responded to the survey in the article were even more encouraging to the idea of foreign workers joining a union in Norway. 

Just over 88 percent of those who responded to the survey said foreign workers should join a union, while 11.8 percent said they shouldn’t. 

One reader who responded to the survey shared their experience of joining a union in Norway and how it benefited them. 

“I had received one pay rise in 6 years before joining a union, which nowhere near covered inflation. Every time I asked, the company blamed various factors. Since I joined a union this year, they have negotiated two pay rises on my behalf fair to inflation,” The user who preferred to remain anonymous said.

Foreign workers in Norway have the same rights to join a union as Norwegian workers. To join a union, you must pay your tax-deductible dues. 

In Norway, trade union federations come to national collective agreements with employers in many industries as there is no minimum wage. This is one of the ways a fair salary is ensured despite there being no minimum wage. 

Did you know? 

Tax returns in Norway are public. It’s true. How much you make for the year and how much you pay in taxes is open information for the public to find out. Norway brings transparency to a new level when it comes to personal finances.

Sverre Solberg, general manager at Trondheim co-working space Work-Work, explained the reasoning for this to Forbes, saying, “as a social democracy, we don’t want there to be a huge gap between the rich and the poor. An open tax return policy shows everyone how big that gap is, making it easier to discuss and address.”

For more on this read: Five things foreigners should know about income tax in Norway

Useful links

Below you’ll find a couple of helpful articles, guides and resources put together by The Local, which cover key aspects of working life in Norway.

Taxes in Norway: Everything you need to know about how much tax people pay

Do you really need to speak Norwegian to work in Norway?

Is this useful?

Please get in touch with me at [email protected] to let me know if this weekly feature is useful and any suggestions you have for jobs related articles on The Local Norway.

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WORKING IN NORWAY

Five things to know about wages in Norway

Norway is a great country to live and work in, and many point to the high salaries as a major pull factor. Here’s what you need to know about the wages in Norway. 

Five things to know about wages in Norway

Norway doesn’t have a minimum wage 

Many wrongly assume that the high wages in Norway must be the result of a high minimum wage. 

However, the country doesn’t have a minimum wage which covers all sectors. Instead, wages are agreed upon through negotiations between trade unions and individual employers or employer organisations. 

This contributes to high levels of trade union membership in Norway. 

Those who aren’t in a union or sectors where membership isn’t widespread negotiate their own wages. 

Some industries, where workers are likely to be exploited or where there may be a large number of foreign workers, have minimum wages enforced by the Norwegian Labour Inspection Authority.

READ MORE: Which industries in Norway have a minimum wage?

How Norwegian wages compare 

The average salary in Norway (more on that later) was 56,360 kroner per month in 2023. 

This equates to an annual salary of around 676,000 kroner. This is a salary equivalent to 49,000 pounds, 57,510 euros, or 61,266 dollars. 

The average annual salary in the US is 59,428, according to Forbes magazine.  Eurostat, the official statistics office of the European Union, measured the average annual salary for a single worker without children at 26,136 euros and 55,573 euros for a working couple with two children. 

However, wages vary greatly across the EU. In 2022, the net annual earnings of an average single worker without children were 47,640 euros in Luxembourg compared to 8,412 euros in Bulgaria

Meanwhile, the average Dane earns 46,972 Danish kroner before taxes, according to Statistics Denmark. This is around 73,981 Norwegian kroner. In Sweden, the average salary was around 38,300 Swedish krona or roughly 38,534 Norwegian kroner

Average wage versus median wage 

The average monthly wage of 56,360 kroner is pulled up by the very highest earners. The highest earners in Norway are found in the private sector. 

Statistics Norway used to keep data on the very highest earners, and around 41,600 people were in the top one percent in 2021 (the year Statistics Norway last kept data) 

To be in Norway’s top one percent required annual earnings of 1.8 million kroner or 150,000 kroner monthly

The median wage is a far more modest 50,660 kroner. 

Income tax 

Norway uses a mixture of progressive and flat taxation. The majority of wage earners in Norway, they will pay a flat income tax of 22 per cent, along with a bracketed tax based on earnings. 

The bracket tax ranges between 1.7 and 17.5 percent, depending on one’s earnings. This means that you can have income tax of up to 39.5 percent in Norway. 

Foreigner workers who are new to Norway will be sorted into the PAYE schemeThis is a flat tax rate of 25 percent, however there are no deductibles available. After a year, they will be sorted into Norway’s regular tax system. 

Norway’s gender and immigrant wage gap 

Foreigners in Norway typically make less money than their Norwegian counterparts. The average salary for a foreign resident in Norway is around 50,270 kroner per month, according to figures from the national data agency Statistics Norway.

Furthermore, when you take immigrants out of the wage statistics, the average wage rises to 58,190 kroner. 

The highest earners amongst foreigners in Norway were those  from North America and Oceania. They made 61,810 kroner on average. 

Africans, and those from countries that joined the EU after 2004, had the lowest earnings among all immigrant groups in Norway. 

While women’s wages increased more than men’s last year, a gender wage gap still exists in Norway. An average woman’s salary amounted to 88.3 percent of a man’s monthly pay packet.

bigger gap existed between Norwegian men and foreign women. 

READ ALSO: How much money do Norway’s different foreigners make?

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