Norway posted worker compliance: minimum wage, holiday pay, and lodging rules

Norway does not have a single, state-imposed national minimum wage. Trade unions and employers’ organizations set minimum pay rates through collective bargaining agreements. The Tariff Board then gives these agreements generalized application (allmenngjøring). This system applies to all workers in specific sectors. It prevents foreign contractors from underbidding domestic firms with lower wages.

Currently, general minimum wage rates apply to ten specific sectors. These include construction, maritime construction (shipyards), electrical installations, cleaning, and hospitality. Starting June 15, 2026, a new generalized minimum wage will apply to all employees in the automotive industry (bilbransjen).

Employers must apply the correct hourly rate based on the worker's sector and experience. In the construction sector, the minimum hourly wage for skilled workers is NOK 264.32. Unskilled construction workers with at least one year of sector experience must receive NOK 249.00 per hour. Those with no sector experience earn a minimum of NOK 239.61 per hour.

Rates differ in the electrical sector. Skilled electrical workers must be paid a minimum of NOK 270.45 per hour, while other workers receive NOK 241.77. The maritime construction industry, which includes shipyards, requires at least NOK 216.79 for skilled workers. Semi-skilled workers in this sector earn NOK 207.14, and unskilled helpers earn NOK 197.61 per hour.

If employees work overtime in any of these generalized sectors, employers must pay a minimum of 40% extra on top of the base hourly rate. The Norwegian Labour Inspection Authority (Arbeidstilsynet) actively enforces compliance with these minimum rates through regular inspections.

Beyond base wages and overtime, employers must manage annual leave compensation. Holiday pay in Norway is called feriepenger. It replaces regular wages during annual vacation time. Foreign companies registering branches in Norway (NUF) are legally obligated to follow these regulations.

Feriepenger is calculated as a percentage of the gross salary earned in the previous calendar year. The statutory minimum rate is 10.2%. Under collective agreements, it is commonly 12%. For employees over 60, the minimum rate increases to 12.5%, or 14.3% under certain agreements.

Because the calculation relies on the previous year's earnings, new employees do not receive paid vacation in their first year of working in Norway. They have not yet accrued feriepenger. Employers cannot bypass this system. It is illegal to pay out holiday pay as cash if the employee does not take vacation days. The only exception is upon the termination of the employment relationship.

Posting workers often involves additional allowances, which carry strict classification rules. Under the generally applicable collective agreement for construction, the employer must cover specific expenses for travel, board, and lodging. Employers cannot use these reimbursements to meet minimum wage requirements. Reimbursement of expenses for travel, board, and lodging must not be included in the calculation of the minimum wage.

Contracts must be precise. If the employment contract does not specify which parts of a posting allowance are wage and which are expense reimbursements, the entire allowance is legally deemed a reimbursement. This excludes the entire amount from the minimum wage calculation.

Tax rules also apply to daily meals. For foreign commuters, tax-free board allowances are only permitted if there are no cooking facilities available at the accommodation.

When employers provide that accommodation, the facilities must meet specific physical standards. Living quarters made available by the employer for posted workers must be safe, furnished, and well-maintained.

Companies can charge workers for housing, but the costs are regulated. If pay deductions are made for worker lodging, they must be reasonably proportionate to the quality of the accommodation and the worker's pay.