Calculation codes for employer's National Insurance contributions

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Under Section 24-2 first paragraph of the National Insurance Scheme Act, employers must on their own initiative calculate employer's National Insurance contributions for each calendar month, and provide information on the calculated contributions and the basis used to calculate the contributions for each calendar month in accordance with the provisions of the A-opplysning Act. Employer's National Insurance contributions are calculated using a contribution basis and a contribution rate. The contribution rate depends on which zone the employer belongs to and which type of industry the employer operates within.

For more information on the calculation and reporting of employer's National Insurance contributions, see The Directorate of Taxes’ annual report on employer's National Insurance contributions to the National Insurance scheme.

Zones 
The location of the enterprise determines which zone the employer belongs to. 

The registered business address in the Register of Legal Entities is the determining factor for legal entities and the zone affiliation of any sub-entities.

However, exceptions from this rule have been introduced to cover cases where the employer performs the majority of the work in a different zone with a higher rate than the zone in which the enterprise is actually registered, and there is no obligation to register a sub-entity in the other zone. This exception is particularly relevant to mobile enterprises and manpower hire.  In this context, the ‘majority of the work’ means that more than half of the work days were performed by the employee for the employer during a calendar month. Each calendar month must therefore be assessed individually. 

The details in the Register of Legal Entities may not always be used as justification, as the register may contain erroneous data concerning the enterprise's location. This could for example be because the enterprise has moved and no change of address notice has been sent or registered. In these cases, the employer must still apply the rate for the zone in which the enterprise should have been registered. However, this only applies if correct registration would have entailed a higher rate. If correct registration would have entailed a lower rate, the employer must ensure that the registered address is correct. 

For private employers, the zone affiliation is linked to the address that is registered in the National Registry. 

Calculation codes
The calculation code depends on which industry the enterprise operates within. To determine which industry an employer operates within, the activity that the employer actually carries on will be the determining factor and not necessarily the industry code under which the employer is registered in the Register of Legal Entities.


If the enterprise is domiciled on Svalbard or has employees who are taxed in accordance with the Svalbard Taxation Act, the Svalbard calculation code must be used, regardless of the industry concerned.

The same calculation code must generally be used for the whole year. Nevertheless, exceptions apply for employers with mixed activity, when certain information must be provided for each calculation code concerned.

Exceptions have also been made for enterprises which start experiencing financial difficulties during the year, when the enterprise must switch to using the calculation code “Sector-exempt activity” from the date on which it starts experiencing such difficulties.

There are seven different calculation codes:

  • General industries (former calculation code AA)
  •  Health enterprises and parts of the public administration (former calculation code BB)
  • Sector-exempt activity (former calculation code CC)
  • Road freight transport
  • Agriculture and forestry and fisheries (former calculation code DD)
  • Reporting of prepayment deductions only (former calculation code EE)
  • Salary deductions for Svalbard (former calculation code JJ)

General industries (former calculation code AA)
Must be used by employers which are not covered by any of the exemptions specified in the other calculation codes.

Employers within general industries must use the following rates to calculate employer's National Insurance contributions:

Zone

 Rate

14.1%

Ia 

10.6% (contribution-free amount NOK 500,000)

II 

10.6%

III

  6.4%

IV

  5.1%

IVa

  7.9%

V

  0%

Health authorities and parts of the state administration (former calculation code BB)
Must be used by enterprises covered by the Health Authorities and Health Trusts Act, and by the parts of the public administration that are not covered by the centralised settlement scheme. 

Employers who are covered by this calculation code must use the following rates to calculate employer's National Insurance contributions:

Zone

 Rate

14.1%

Ia 

14.1% 

II 

10.6%

III

  6.4%

IV

  5.1%

IVa

  7.9%

V

  0%

Sector-exempt activity (former calculation code CC)
Must be used by employers who carry on sector-exempt activities and enterprises experiencing financial difficulties. 

Employers who are covered by this calculation code must use the following rates to calculate employer's National Insurance contributions:

Zone

 Rate

14.1%

Ia 

10.6% (contribution-free amount NOK 500,000)

II 

10.6% (contribution-free amount NOK 500,000)

III

  6.4% (contribution-free amount NOK 500,000)

IV

  5.1% (contribution-free amount NOK 500,000)

IVa

  7.9% (contribution-free amount NOK 500,000)

V

  0% (contribution-free amount NOK 500,000)

If the employer is covered by this calculation code, employer's National Insurance contributions must generally be calculated using the highest rate. However, a contribution-free amount scheme applies which means that differentiated rates may be used within the contribution-free amount. The contribution-free amount is NOK 500,000. This means that, for this activity, the employer can apply differentiated rates until the difference between the contributions calculated at the highest rate and those calculated using the differentiated rate amounts to NOK 500,000 during the income year. The employer can calculate how high the wage costs can be before the rate of 14.1% must be applied in the following way:

Total wage costs for using differentiated rate = 500,000*100/(14.1 - differentiated rate) 

Once the contribution-free amount has been used up, the employer must apply the 14.1% rate for the rest of the year. Only one contribution-free amount applies per legal entity. However, if the legal entity is part of a group of enterprises, the entire group must be considered as a single entity in this context.

Employers with activities within the following industry sectors are considered to carry on sector-exempt activity and must use this calculation code:

The steel sector

Activities linked to the production of activities referred to in Annex II to the ESA's guidelines for regional aid 2014–2020

The synthetic fibre sector

Activities linked to the production of activities referred to in Annex IIa to the ESA's guidelines for regional aid 2014–2020

Industry codes, see Norsk standard for næringsgruppering (SN2007)

The energy sector

Industry main area 35

 Electricity, gas, steam and hot water supply

The transport sector

49.1

Passenger transport by rail

49.2

Freight transport by rail

49.31

Transport by bus and rail in urban and suburban areas

49.39 

Other land passenger transport

50

Shipping

51.1

 Passenger transport by air

51.21 

Freight transport by air 

Airports

52.23

Other services linked to air transport

Financing and insurance activity, etc.

64

Financing activity

65

Insurance activity and pension funds, except national insurance schemes under public sector management 

66

Services linked to financing and insurance activity

Head office services and certain consultancy services within a group

70.10

Head office services, but only as regards services provided within a group of companies

70.22 

Business consultancy and other administrative consultancy, but only as regards services that are provided within a group of companies

Enterprises that are considered to be experiencing financial difficulties as defined in the ESA's guidelines concerning state aid to enterprises in difficulties must also use the calculation code ‘Sector-exempt activity’ (former calculation code CC) from and including the calendar month in which the enterprise is considered to be experiencing financial difficulties.

Road freight transport (former calculation code GG)

Employers operating within road freight transport (Industry code 49.41 - Road freight transport, including the leasing of heavy good vehicles with a driver) must use this calculation code.   

Employers who are covered by this calculation code must use the following rates to calculate employer's National Insurance contributions:

Zone

Rate

 I 

14.1%

Ia

10.6% (contribution-free amount NOK 250,000)

II

10.6% (contribution-free amount NOK 250,000)

III

6.4 % (contribution-free amount NOK 250,000)

IV

5.1 % (contribution-free amount NOK 250,000)

IVa

7.9 % (contribution-free amount NOK 250,000)

V

0% (contribution-free amount NOK 250,000)

Road freight transport is covered by the sector exemption for transport. Employers who carry on activity covered by this industry code must therefore generally calculate employer’s National Insurance contributions using the highest rate (14.1%). A contribution-free amount scheme, according to which differentiated rates may be applied within the contribution-free amount, also applies here.
The contribution-free amount for road freight transport is NOK 250,000. 

This means that these employers can apply the rates until the difference between the contributions calculated using the differentiated rates and those calculated using the highest rate of 14.1% amounts to NOK 250,000. The high rate must then be used for the rest of the year. The employer can calculate how high the wage costs can be before the rate of 14.1% must be applied in the following way: 

Total salary costs for using differentiated rate = 250,000*100/(14.1 - differentiated rate).

Only one contribution-free amount applies per legal entity. However, if the legal entity is part of a group of enterprises, the entire group must be considered as a single entity in this context.

Employers which are comprised by the road freight transport provision may also be engaged in other types of activity (mixed activity). For example, combinations of freight transport and other transport activity which is covered by the calculation code "sector-exempt activity" may be involved. Such employers will generally only be permitted to calculate one contribution-free amount of NOK 250,000. If accounting separation is established between the two types of activity, an employer may nevertheless be permitted to apply a contribution-free amount of NOK 500,000, provided that no more than NOK 250,000 is used for the freight transport part of the activity.

Agriculture, forestry and fisheries (former calculation code DD)
Must be used by employers whose activity is limited to cover products which are not covered by the EEA Agreement. 

Employers who are covered by this calculation code must use the following rates to calculate employer's National Insurance contributions:

Zone

Rate

I

14.1%

Ia

10.6%

II

10.6%

III

6.4%

IV

5.1%

IVa

5.1%

V

0 %

This applies if the employer is carrying on activity within the following industry codes:

01.1-01.3     

Growing of non-perennial crops, growing of perennial crops, plant propagation

01.4

Animal production 

01.5  

Mixed farming 

01.6

Support activities to agriculture and post-harvest crop activities

01.7  

Hunting, trapping and related service activities 

02.1- 02.3

Silviculture and other forestry activities, Logging and Gathering of wild growing non-wood products and part of 16.10 (Sawmilling and planing of wood)

02.40

Support services to forestry, excluding timber measurement

03.11-03.12

Marine fishing and Freshwater fishing

03.21- 03.22

Marine aquaculture and Freshwater aquaculture

10.11-10.13

Processing and preserving of meat, Processing and preserving of poultry meat and Production of meat and poultry meat products

10.20

Processing and preserving of fish, crustaceans and molluscs

10.3

Processing and preserving of fruit and vegetables 

10.4

Manufacture of vegetable and animal oils and fats 

10.5

Manufacture of dairy products

10.6 

Manufacture of grain mill products, starches and starch products, and part of 10.89 (Manufacture of artificial honey and caramel)

10.85 

Manufacture of prepared meals and dishes

10.9 

Manufacture of prepared animal feeds

46.2 

Wholesale of agricultural raw materials and live animals

46.31

Wholesale of fruit and vegetables, and part of 10.39 (manufacture of peeled or cut vegetables and mixed salads)

46.32 

Wholesale of meat and meat products

46.33

Wholesale of dairy products, eggs and edible oils and fats 

46.381 

Wholesale of fish, crustaceans and molluscs

50.202

Domestic maritime transport of goods, but only as it relates to the operation of wellboats

52.10 

Warehousing and storage, but only if it relates to the operation of grain silos

Reporting of prepayment deductions only (former calculation code EE)

This applies to enterprises which are not liable to pay employer's National Insurance contributions, or which have centralised settlement of employer's National Insurance contributions (the public administration) and which only need to provide details of withholding tax deductions. If details of pensions need to be provided, this must be done under the calculation code for general industries.

Salary deductions for Svalbard (former calculation code JJ)
Must be used if the employer wishes to report salary deductions under the Svalbard Tax Act which must be reported under payroll withholding tax/salary deductions. 

The basis for employer's National Insurance contributions may be registered but does not trigger any contributions, as the rate for Svalbard is 0.

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