The Norwegian government's 2025 budget proposal: Implications for labour law

At a glance

• The Norwegian government presented its 2025 budget proposal.
• The proposed measures include financial relief for employers through the elimination of the employer surcharge on high wages, initiatives for workforce inclusion, and increased funding to address unethical labor practices.

On 7 October, the Norwegian government presented its 2025 budget proposal, which includes relevant updates for employers.

The key implications for employment law are:

• Removal of the employer surcharge tax: The special employer tax for wages exceeding NOK850,000 is set to be discontinued as of 1 January 2025, following criticism that it strained businesses.
• Combatting unethical labour practices: NOK20 million will be allocated to enhance efforts against labour exploitation, social dumping, and labour-related crimes, with NOK18 million dedicated to bolster the Norwegian Labour Inspection Authority’s presence and monitoring capabilities.
• Expanding workforce participation: The government also aims to boost employment through expanded labour market programs, adding NOK468 million in subsidies and introducing flexible rules to help those with disabilities re-enter the workforce.