Lönn

Lønn is compensation paid by an employer to an employee for work performed. In Norwegian and Danish usage the term covers base pay, allowances, overtime, bonuses and other benefits that are remunerated for the work carried out. It is commonly presented as gross wage (bruttolønn) before deductions and net wage (nettolønn) after taxes and social contributions. Pay frequency is typically monthly in Norway and Denmark, with variations by agreement or sector.

The composition of lønn includes base salary, guaranteed allowances such as job- or position-related pay, variable pay like performance bonuses, overtime pay, shift allowances, and other cash-equivalent benefits. The payslip shows gross amount, deductions for income tax, social security contributions, pension premiums, union dues, and any other withholdings, yielding net pay. Overtime rates and eligibility depend on national law or collective agreements and can vary by sector.

Legal framework: In Nordic countries wage-setting is largely governed by collective agreements rather than a universal statutory minimum wage. Norway, Sweden, and Denmark rely on sector-wide agreements negotiated between employers' associations and unions; any minimum wage floors, when present, arise from these agreements. Taxation is administered by the state with withholding at source, and social-security contributions are typically integrated into payroll systems. Employment contracts and local regulations may set additional terms for leaves, bonuses, and deductions.

Economic and social aspects: Lønn directly affects living standards, purchasing power, and labor-market mobility. Wage levels reflect skills, experience, performance, and bargaining power, and evolve with inflation and productivity. Accurate payroll administration is essential for transparency, legal compliance, and employee trust.