Growth in NI contributions

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The basis for employers’ National Insurance contributions amounted to NOK 1.434 billion in 2019, an increase by 6.0 per cent from 2018. Private sector experienced the most considerable growth, increasing by 6.3 per cent.

Written by: Heidi Bekkevold Backe

Within the private sector, the basis for employers’ National Insurance contribution amounted to NOK 1.038 billion in 2019. The increase by 6.3 per cent mainly derives from growth in grants and pension premiums. Correspondingly, the public sector amounted to NOK 395 billion of the basis for employers’ NI contributions in 2019. According to the statistics on NI contributions, this equals to an increase by 5.2 per cent.

Figure 1. Basis for employer`s National Incurance contributions, by sector

Public sector Private sector In total
Per cent change 2015-2016 5.1 1.1 2.1
Per cent change 2016-2017 3.9 2.5 2.9
Per cent change 2017-2018 6.8 5.3 5.7
Per cent change 2018-2019 5.2 6.3 6.0

Fluctuations in grants and pension premiums

Grants and pension premiums amounted to NOK 106 billion of the total basis for employers’ National Insurance contributions in 2019, an increase by 10.6 per cent from 2018. Within the private sector, grants and pension premiums amounted to NOK 56 billion, a 14.3 per centage increase from last year. Within the public sector, grants and pension premiums amounted to NOK 50 billion, a 6.9 per centage increase from 2018. Compared to the corresponding 18.9 per centage increase from 2017 to 2018, the growth in grants and pensions premiums within the public sector is reduced in 2019.

The contributions to grants and pension premiums fluctuate from year to year. The fluctuations may be caused by the fact that tax obligations of grants and pension premiums relate to the calendar month in which the actual payments are made. When grants to premium funds or defined contribution funds are returned to the employers, no corresponding return of National Insurance contributions shall be made. The same applies to the return of payments in the event of discontinuation of pension schemes.

City municipalities largest contributors to wage totals in private sector

The level of employers’ National Insurance contributions is calculated based on geographically dependent contribution rate zones and business classification codes.

The top ten municipalities in terms of contributions to wage totals in private sector amounted to 51 per cent of this total in 2019. All these municipalities are larger city municipalities. Figure 2 illustrates the top ten municipalities’ share of the basis for wage totals in private sector, 2019. Oslo municipality contributed with the greatest share of 23 per cent of the wage totals, followed by Bergen and Stavanger, contributing with 6 and 5 per cent, respectively. 

Figure 2. Share (percentage) of basis for wage totals in private sector, by municipalities. 2019

Prosent
Oslo municipality 23.2 % 23.2
Bergen 6.4 % 6.4
Stavanger 4.9 % 4.9
Bærum 4.4 % 4.4
Trondheim 4.1 % 4.1
Sola 2.2 % 2.2
Kristiansand 1.7 % 1.7
Sandnes 1.7 % 1.7
Drammen 1.3 % 1.3
Tromsø 1.3 % 1.3
Other municipalities 48.7 % 48.7

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