Employees on net salary
A net salary agreement is an agreement between an employee and their employer where the employer covers all tax and contributions on the employee's salary and remuneration. Such agreements may be established in connection with cross-border work.
Tax, national insurance contributions and employer’s national insurance contributions are calculated on gross salary. Under a net pay agreement, the employee's net pay must be converted to gross salary (grossing-up) in order to determine the basis to be used to calculate the tax, etc.
In the case of foreign employees in Norway, the conversion must be performed according to Norwegian tax rates and using the Norwegian rate for national insurance contributions (unless the employee is exempt from such contributions).
The employer is responsible for correctly grossing-up amounts and for reporting gross pay via the a-melding. See the guide to the a-ordning scheme for more information concerning how employers with employees on a net salary agreement must report information.
Note that net pay agreements are an agreement under civil law and don't exempt the employee from their responsibility to submit tax returns or pay assessed tax to the tax authorities.