How net pay is calculated in Norway
Norwegian income tax has three parts. National insurance (trygdeavgift) of 7.6% is charged on gross pay. Bracket tax (trinnskatt) of 1.7% to 17.8% applies from NOK 226,100. And 22% is charged on ordinary income — gross pay minus the minimum standard deduction (46%, up to NOK 95,700) and the personal allowance (NOK 114,540). In Finnmark and northern Troms the rate on ordinary income is 18.5%, plus an extra deduction.
- Holiday pay (feriepenger): 10.2% of last year’s pay (12% with a five-week agreement, +2.3% from age 60), paid instead of the June salary.
- PAYE scheme: foreign workers with a short stay can choose a flat 25% (incl. national insurance) on salaries up to NOK 725,050 in 2026.
- Monthly withholding differs (no tax in June, half tax in December) — the yearly total is what counts.
Converting a Norwegian hourly wage
Hourly employees are not paid for holiday weeks — feriepenger replace that pay. Annual gross = hourly rate × weekly hours × (52 − holiday weeks), plus 10.2% or 12% holiday pay. Net per hour is shown per hour actually worked.