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Disputed employer’s tax will be removed from the turn of the year

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Prime Minister Jonas Gahr Støre and Finance Minister Trygve Slagsvold Vedum state that the controversial additional employer’s tax will be removed on 1 January 2025. Photo: Terje Pedersen / NTB

Of NTB | 08.05.2024 21:55:15

Working life: The government already announced last winter that the scheme would be scrapped sometime next year.

– We introduced a temporary employer contribution as part of a responsible state budget at a very difficult time. It was temporary, and we began winding it down in this year’s budget. It will be completely discontinued from 1 January 2025, says Prime Minister Jonas Gahr Støre (Ap) to DN.

In February, Finance Minister Trygve Slagsvold Vedum said that the extra fee would be removed before the 2025 election, but he could not say when in the year.

– Our assessment was that we had to spend money on people who had problems with the high prices, such as families with children and groups who could not afford it, on top of the electricity subsidy that everyone enjoyed, says Vedum to DN.

At the start, incomes over NOK 750,000 were subject to an additional tax of 5 per cent. In this year’s budget, it was adjusted down somewhat by increasing the limit from NOK 750,000 to NOK 850,000.

– It is good news that the government is now clarifying that the extraordinary employer contribution will be removed completely from 1 January 2025. This has been an important issue for NHO’s members, and we had a clear expectation that the additional contribution would be cut next year, he says to NTB.

The fact that the final date has been determined provides predictability for many thousands of employers and workplaces across the country, he emphasizes.

Since January last year, Norwegian companies have had to pay additional employer’s tax for high salaries. This move by the government has met with a lot of opposition, both from the business community and NHO, but also from LO and budget partner SV.

Managing director Ole Erik Almlid of NHO is pleased that the date has now been set.

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