arbeidsgiveravgiften

Arbeidsgiveravgiften is a Norwegian payroll tax levied on employers. It is a significant source of public revenue and is used to fund various social welfare programs. The tax is calculated as a percentage of the employee's gross salary. The rate of arbeidsgiveravgiften varies depending on the municipality where the employer is located, with higher rates generally applied in areas with higher labor costs or specific regional development goals. For employees living in Finnmark or Nord-Troms, a reduced rate applies.

The purpose of this tax is to finance the Norwegian social security system, which includes benefits such as pensions, unemployment benefits, sickness benefits, and parental leave payments. Employers are responsible for withholding and paying this tax to the Norwegian Tax Administration. The system aims to ensure a broad base for social welfare funding while also potentially influencing regional economic development through differential tax rates. Businesses must register and report their payroll expenses, including the calculation of arbeidsgiveravgiften, through the Altinn portal. The exact rates and regulations are subject to annual adjustments by the Norwegian government.