What are the Norwegian pay and working conditions?
There is no such thing as a general minimum wage in Norway. The salary is agreed between the employer and employee as part of the employment contract. In cases where the parties are bound by a collective agreement, the remuneration will be based on this agreement. While an employment contract is an individual agreement between an employer and employee, a collective agreement is a collective agreement between employers ‘and employees’ trade unions. In addition to the wage conditions, collective agreements contain provisions on other working conditions, and if the employee is employed in an enterprise that is covered by the collective agreement, he will also be covered by the terms of that agreement.
In Norway, wages can be calculated in various ways, for example on the basis of time worked (annual, monthly or hourly wage) or on the basis of the performance achieved (performance-based or piecework pay). The method of calculation is most often determined by the industry, and in the construction industry, hourly wages are the most common way of remunerating construction workers.
Possible bonuses to remuneration due to inconvenient working hours in the evening, at night, on Sundays and public holidays, should be agreed between the employer and employee. The allowances most often appear in the employment contract, in internal contracts at the workplace or in a collective agreement, if the parties are covered by such an agreement. In the case of work on public holidays on May 1 and 17 (Norwegian national holiday), everyone is entitled to additional remuneration, which is regulated by law.
The vast majority of workers are also entitled to overtime pay. Overtime pay means that the employee is entitled to the normal hourly wage for each hour of overtime plus a minimum supplement to this wage of 40% of the normal hourly wage. It is not allowed to set a lower percentage rate, but it can be agreed that any overtime can be taken away in the form of free time [note crowd. avspassering]. However, overtime pay of at least 40% must always be paid as a supplement.
Despite the fact that there is no general minimum wage, the minimum wage is determined in individual industries through the so-called universal collective agreements. The popularized collective agreements apply to all persons who perform work to a certain extent, even if the employee is not covered by the collective agreement. Such popularization of collective agreements is a tool to prevent foreign workers from receiving worse pay and working conditions than those that normally apply in Norway.
In the case of both qualified and unskilled workers who perform construction work on construction sites, the Fellesoverenskomsten for byggfag FOB [Collective Agreement for the Construction Industry] 2014-2016 has been popularized. This agreement was concluded between Næringslivets Hovedorganisasjon [Norwegian Employers’ Union] and Byggenæringens Landsforening [Norwegian Construction Industry Association] on one side, and Landsorganisasjonen and Norge [Norwegian Trade Union Confederation] and Fellesforbundet [Norwegian Trade Union Confederation] on the other side, ordinance. In addition to setting the minimum wage, the ordinance regulates, inter alia, the coverage of travel, food, accommodation and workwear costs.