Brief information about the tax and contribution rule

In some cases, the employer must cover the tax on the employee’s agreed salary or other benefits. This is called ‘net salary’ and means that the employer pays the tax for the employee.

The employer is then obliged to report the gross salary. The employer is also responsible for correctly calculating gross pay (grossing up) when net pay arrangements are used. 

Both employees who work in Norway and abroad can receive net salary. Reporting of net salary for work performed abroad differs from work performed in Norway.

See the explanatory information concerning net salary

See the guidelines concerning the grossing up of net salary for work performed abroad

 

Benefits covered by the tax and contribution rule

For employees with net salary, you must specify salary and other benefits that this concerns as “Net salary” in the a-melding.

See summary of benefits covered by the “Net salary” tax and contribution rule

 

Net pay for seafarers

Some employees with a net salary agreement are also entitled to the special allowance for seafarers.

For such employees, you must specify salary and other benefits that this concerns as “Net salary for seafarers” in the a-melding. You should not use the description “Net salary for seafarers” if the employee is not entitled to, or it is uncertain whether the employee is entitled to, special allowance for seafarers.

See summary of benefits that the “Net salary for seafarers” tax and contribution rule covers

For further information concerning special allowance for seafarers, see separate topic page 

 

What we use the information for

NAV uses information concerning salary and benefits to calculate unemployment benefit and to check benefits such as sickness benefit, parental benefit, disability benefit and advance child maintenance payments.

The Norwegian Tax Administration uses the information to calculate and check what income recipients must pay in tax. Net salary information is also used to grant income recipients allowances that apply to seafarers. 

Statistics Norway (SSB) uses the information for statistical purposes.