Employer and Employees
What are Employer National Insurance Contributions? Rates, Zones and Basis
Employer National Insurance Contributions are calculated on salaries and other benefits. See how geographical zones, reporting and payment work.
2 min read · Translated from Norwegian. Read the original
Arbeidsgiveravgift (Employer National Insurance Contributions) are contributions employers pay on salaries and other taxable benefits. They are in addition to the gross salary and are a central part of the total personnel cost.
How are the Contributions Calculated?
Simplified, arbeidsgiveravgift are calculated as follows:
Contribution basis × current rate
The rate varies by geographical zone and can be affected by special rules. Normally, the business's registered location and where the work is performed are included in the assessment. Certain industries and benefits have their own rules.
Reporting and Payment
The employer reports salary, tax withholding, and arbeidsgiveravgift through the a-melding (a monthly report to the tax authorities, Norwegian Labour and Welfare Administration (NAV), and Statistics Norway). The contributions are calculated for reported benefits and paid according to Skatteetaten's (the Norwegian Tax Administration's) terms and deadlines. Delays can result in interest and follow-up.
Rates, deadlines, and schemes may change. Always check Skatteetaten's information for the current year.
Why is this Relevant for Company Analysis?
The number of employees and salary costs affect the arbeidsgiveravgift and cost level. Register and accounting figures can be used for comparison but do not provide a basis for calculating a business's exact contributions without detailed salary and zone information.
On Proffi
Proffi can show the number of employees, salary costs, and registered geography but must avoid presenting estimated arbeidsgiveravgift as a reported fact. A calculator should ask the user to select the correct zone and year.
Frequently asked questions
- Are the contributions deducted from the employee's salary?
- No. They are the employer's cost.
- Is the rate the same throughout Norway?
- No. Norway has differentiated zones and special rules.