årslønn

Årslønn, or annual salary, refers to the total gross compensation an employee earns from an employment within a one-year period. It is typically stated in contracts or job advertisements. For employees paid monthly, the year is often represented as 12 times the monthly base rate, but the figure may include variable remuneration.

The year’s gross income includes fixed base salary, guaranteed bonuses, commissions, and other taxable earnings such as overtime pay or shift allowances. Some agreements include non-recurring components; others treat them as separate, contingent on performance. Vacation pay (feriepenger) is usually calculated separately from the ordinary årslønn and paid in the following year in Norway.

Årslønn is used as a basis for salary negotiations, benchmarking, and comparing job offers. It expresses the expected earnings before tax and social contributions, not the take-home pay. The actual net income depends on tax rates, deductions, and any employer-provided benefits.

Variability and contracts vary by employer. Some guarantee a fixed årslønn with additional performance-based pay; others have a fixed annual salary with a separate, discretionary bonus. Changes in role, responsibilities, or performance can lead to adjustments in the årslønn. The figure may differ from year to year due to promotions, raises, or changes in compensation structure.

Example: A monthly base salary of 40,000 NOK results in a base årslønn of 480,000 NOK if paid evenly over 12 months; if a yearly bonus of 100,000 NOK is guaranteed, the total annual gross could be 580,000 NOK. Net income depends on personal tax.