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Financial Participation

There is little by way of tax incentives for workers’ financial participation in Norway.



Typically, the structure of employee share ownership schemes in Norway is relatively simple. Specific tax concessions apply only to some forms of employee share ownership, which counts as regular income. Income tax and social security contributions thus have to be paid. Capital gains and profit made on selling employee shares are taxed at the usual rate of 28%. If all employees benefit from an employee share ownership scheme 20% of the capital gains is tax-exempt. Thus it doesn’t make any difference from a tax perspective if there is differentiation between employees on the basis of length of employment and level of income. The tax benefit of broadly-based employee share ownership schemes is limited to 1,500 Norwegian krone (around 185 euros) per year.1

If a company in Norway has more than 50 employees it is legally obliged to inform the employees’ representatives concerning workers’ financial participation schemes. Collective agreements can also contain a requirement to provide information.2

Wilke, Maack and Partner (2014) Country reports on Financial Participation in Europe. Prepared for www.worker-participation.eu. Reports first published in 2007 and fully updated in 2014.