Based on Samfunnskunnskapsprøven syllabus. Here are the key points from topic: Working life
Work and welfare
- The benefits of having many people in paid work are:
- Increased tax revenues for the state and municipalities
- More money for schools, healthcare, roads, etc.
- Better welfare benefits
- Lower public expenditure (fewer people need unemployment benefits, social assistance, social security payments, etc.)
- Since the end of the 1960s, Norway has been an oil nation, where oil and gas production is an important industry.
- The Norwegian state earns a lot from the export of oil and gas, and about a quarter of public expenditure is covered by these revenues, while the rest is covered by taxes and fees.
- Work can provide:
- Financial opportunities
- Independence and a meaningful everyday life
- Social status and social relations
- Opportunity to use skills and competence
- Opportunity to contribute to society and feel useful.
- Former Prime Minister Jens Stoltenberg said in his New Year’s speech in January 2011: “We live off each other’s work. The more people in work, the more welfare.”
- Main activity of adult population (15-74 year bracket) : 65% professionally active, 10% disable and early retirement, 7% pensioners, 12% education
- The most important revenues for the state and the municipalities are tax revenues and various fees.
- The state and municipalities receive tax revenue from both businesses and private individuals.
Historical development
- Agriculture, forestry, and fishing were the most important industries in Norway 150 years ago.
- Factories were built at the end of the 19th century, and many moved to the cities and started working in industry.
- Many new industrial jobs were created during the first half of the 20th century.
- In 1950, 20% of the population worked in agriculture, which has now fallen to less than 3%.
- More food products are produced in Norway today due to machines that make it easier and more efficient to work with agriculture.
- There has been a sharp decline in the number of people working in the industry during the last 30 years.
- After oil was found in the North Sea in the late 1960s, oil and gas production became an important part of Norwegian industry.
- Today, most jobs in Norway are found in the service professions, such as shops, healthcare, schools, nurseries, passenger transport, and information technology.
Rights and duties in working life
- Working life in Norway is governed by laws and agreements
- Laws are passed by politicians in Parliament and apply to all employers and employees
- Agreements are made between employers and employees through their trade unions and apply to specific occupational groups
- Examples of statutory rights include:
- The right to an employment contract
- A normal working week of 37.5 hours
- Minimum of 25 working days of holiday
- Right to be away from work with full pay if an employee or their child is ill
- Paid leave entitlement for employees who have children
- The Working Environment Act:
- Applies to all employees in Norway
- Employers and employees must comply with this law
- Deals with employment and contracts, working time, absence from work, health, environmental and safety work (HSE)
- Employer has the main responsibility for the working environment at the workplace
- Employee is responsible for creating a good working environment, participating in and implementing the measures that are put in place to improve the working environment, and participating in the organized protection and environmental work at the company
- The Holiday Act:
- Determines how much holiday an employee is entitled to
- Specifies when the vacation is to be taken
- Covers vacation during the notice period and new job and holiday
- Addresses illness during the holidays
- Holiday law is a minimum law, which means that some employees have even better agreements than what the law says, but no one has worse.
Organizations in working life
- Organizations in working life:
- Largest employee organization: LO
- Largest employers’ organization: NHO
- Organizations’ tasks include negotiating wages and working hours
- Agreements drawn up when employers and employees agree on things, called collective agreements
- Trade unions are the workers’ interest organizations
- Many workers in Norway are members of a trade union and pay a sum to join
- Participation in working life:
- Good workplace environment requires cooperation between employer and employees
- Co-determination and corporate democracy arrangements in place for employee involvement
- Individual employee must be heard and allowed to help arrange their own working situation
- Trade unions allow employees to participate in discussions and receive information about the business
- Larger companies must ensure health, environment, and safety in the workplace
- Work must be organized and followed up by a representative for the employees and a representative for the management.
All the people at work
- Goal: Get as many people as possible into work
- Unemployment in Norway is relatively low
- Norwegian state spends large resources every year on measures to create or maintain jobs
- Examples of such measures:
- Provide financial support to businesses that are struggling
- Influence people’s incomes through wage negotiations and interest rate policy
- Lower companies’ fees and taxes
- Influence employment in the public sector
- Reduce working hours or lower the retirement age
- Nav: The public sector spends a lot of money through Nav on various labor market courses
- Qualify participants to enter work
- Wage subsidies provided to split the salary expenses with an employer for a period
- Nav collaborates with many employers on an agreement on inclusive working life (IA agreement) to make it easier for people on long-term sick leave, disabled people, and older workers to work
- Newly arrived refugees in Norway are offered an introduction program by the municipality they live in
- Receive free training in Norwegian and social studies
- In language practice or work practice in different companies during the program
- Qualify to enter work or undertake further education
- Program usually lasts two years on a full-time basis, and participants receive an induction allowance
- People who have been out of work for a long time, and who are dependent on financial social support, can be offered participation in a qualification program through Nav
- Customized training and work training
- Qualify to enter work
- Program usually lasts up to one year on a full-time basis, and participants receive qualification support
- Companies can get financial help to start courses for employees who need more training in reading, writing, arithmetic, speaking, ICT and Norwegian or Sami.
The welfare society creates jobs
- A variety of professional groups are needed for the Norwegian welfare society to function
- Examples of such groups include teachers, school staff, doctors, nurses, healthcare workers, case managers, and office and cleaning staff
- Most people who work in education and health services in Norway are public employees
- The public sector sometimes buys services from private companies, such as the GP scheme
- Around 30% of the working population in Norway are employed in the public sector.
Job search
- Competition for available jobs in Norway can be high despite low unemployment rates
- Job seekers need to be active and use contacts and networks to find job opportunities
- Many vacant jobs are advertised online or in newspapers
- To apply for a job, one needs to write an application and submit a CV
- A CV should highlight the person’s education and work experience
- Before going to a job interview, one should prepare by researching the company and practicing potential interview questions
- Job applications are commonly submitted electronically online or via email
- A job interview requires arriving on time, dressing appropriately, giving a firm handshake, making eye contact, and being positive and friendly
Salary and tax
- In Norway, annual salary is a common way of talking about salary
- Average gross annual salary for full-time employees is around NOK 500,000 a year (its approx NOK 600,000 in 2022)
- Women earn on average around 85% of what men earn
- Salary is commonly paid on a fixed date once a month
- Net salary is deposited directly into the employee’s bank account and a payslip is provided showing gross salary and tax deductions
- It is the employer’s duty to deduct tax from the employee’s gross salary before paying the salary
- Norwegian social model depends on citizens paying various taxes and fees to finance welfare benefits
- All employees and employers pay tax to the municipality they live in and the state
- How much tax an individual pays varies based on their income and expenses, such as loan interest, childcare expenses, and work-related travel expenses
- On average, an employee pays approximately 25% of their gross salary in tax
- Everyone who works must have a tax card.
- Everyone who receives a salary must receive a payslip, which is a receipt for tax paid
- Gross salary is the salary received before tax
- Net salary is the salary received after tax, pension payments, and other deductions have been made.
Black Work
- Illegal work is considered economic crime
- Both employers and employees can be punished for undeclared work
- Black work is immoral and not contributing to society
- Undeclared work results in the state losing millions in tax revenue and employer contributions
- Undeclared work can have major financial and other consequences for the employee, such as:
- No pay during illness
- No holiday pay
- No pension points
- Not entitled to unemployment benefit
- No occupational accident insurance
- No possibility to borrow money from the bank
- No employment contract, final certificate or documented work experience, making it difficult to get new work
- Black work means working without a contract and without paying tax, and the employer does not pay employer’s tax or social security tax for the employee
