Employer’s National Insurance (NIC) is a payroll tax employers pay to the state based on salary payments to employees. It is a major part of total payroll costs and a key revenue source for welfare funding. Rates vary by geography and there are exemptions, making it essential but complex in Norwegian payroll handling. Together with employees’ social security contributions, employer NIC finances the welfare system.
For the role and duties of an employer, see Employer .
Section 1: Basics
1.1 What is employer NIC?
Employer NIC is a payroll tax paid to the state as a percentage of total salary and taxable benefits. It is calculated on gross pay and ranges from 0% to 14.1%, depending on the geographic zone where the business is registered.
The levy funds the National Insurance Scheme and other public welfare programmes. It is a direct employer cost in addition to salary paid to the employee.