Lønnstrek

Lønnstrek is a Norwegian term that translates to "wage deduction" or "salary withholding." It refers to any amount subtracted from an employee's gross salary before the net pay is calculated and disbursed. These deductions can be mandatory or voluntary.

Mandatory lønnstrekk typically include taxes, such as income tax and social security contributions (nav-avgift). These are legally required and remitted to the government by the employer on behalf of the employee. Another common mandatory deduction is for pension contributions, if applicable under the terms of employment or collective agreements.

Voluntary lønnstrekk are deductions that an employee agrees to have made from their salary. This can include payments for union membership fees, contributions to employee savings plans, or repayment of loans or advances from the employer. In some cases, it might also include payments for employee benefits such as life insurance or health insurance premiums.

The employer is responsible for accurately calculating and reporting all lønnstrekk. Employees typically receive a payslip (lønnsslipp) detailing their gross salary, all deductions made, and the final net salary. Understanding lønnstrekk is crucial for employees to comprehend their total compensation and financial obligations. The specific deductions and their rates are governed by Norwegian tax laws, employment contracts, and relevant collective bargaining agreements.