💰 Salary after taxes: how to calculate your net salary and holiday pay
Understanding "gross → net" in Norway is a piece of cake! All you need to know is what deductions are made, how income progression works, and how holiday pay (feriepenger) is paid. Check out the brief overview of the mechanics below, including an interactive insert with a clear breakdown, examples for salaries of 500k/700k/1M NOK, and typical mistakes that cause calculations to "float".
⚖️ Gross vs net: what deductions consist of
Gross is the annual salary in the employment contract. Net is what you receive "in hand" after deductions. Deductions include basic income tax, progressive allowances, social security contributions, and applicable standard deductions.
Important: the actual "net" amount varies from month to month due to holiday pay and the specifics of tax tables; focus on the annual average and take into account seasonal peaks/troughs.
What affects the result:
● Salary amount and "brackets" (the higher the income, the higher the effective rate).
● Family status and standard deductions (reduce the tax base).
● Communal and individual conditions (e.g., additional employer benefits).
Transition between years: which income and deductions are attributed to which tax period.
Annual summary
- Gross/year 500,000 NOK
- Deductions/year 135,000 NOK
- Net/year 365,000 NOK
- Avg. net/month ≈ 30,417 NOK
- Holiday pay ≈ 51,000 NOK (instead of salary in holiday month)
- Demo values for layout. Actual values depend on deductions, tax tables, and personal conditions.
🗓️ Holiday pay (feriepenger): when and how much
Holiday pay is a separate payment that replaces your salary during your holiday month. It is calculated as a percentage of your income from the previous year (excluding holiday pay itself). The base rate is 10.2%, and for 5 weeks of holiday, it is 12%. It is convenient to think of it this way: in the holiday month, you receive holiday pay, and in one of the months without holidays, the amount you receive may be lower due to the specifics of deductions.
In practical terms, this means that the average monthly net income for the year differs from the net income for a specific month — take this into account when planning your budget and reserves.
🧮 Examples for salaries of 500k / 700k / 1M NOK
Below is a clear table with the approximate effective rate, average "net/month" and holiday pay at 10.2% (for 12%, simply add the difference). These are demonstration values for layout and initial assessment; the actual figures depend on deductions and your profile.
| Gross salary, NOK/year | Effective deduction rate | Deductions, NOK/year | Net, NOK/year | Avg. net, NOK/month | Holiday pay (10.2%) |
|---|---|---|---|---|---|
| 500,000 | ~27% | 135,000 | 365,000 | ≈ 30,417 | ≈ 51,000 |
| 700,000 | ~30% | 210,000 | 490,000 | ≈ 40,833 | ≈ 71,400 |
| 1,000,000 | ~35% | 350,000 | 650,000 | ≈ 54,167 | ≈ 102,000 |
Figures are rounded. The calculator includes deductions and individual conditions.
🧨 Common mistakes when estimating "in hand"
- Calculating the "net amount" each month. In practice, holiday pay and specific deductions make the year uneven. Look at the average for 12 months and keep a reserve.
- Ignoring deductions and profile. Family status, children, type of income, additional payments — all of these change the tax base.
- Confusing gross "offer" and actual payment. Some payments are not included in holiday pay, and bonuses and overtime may fall into a different period.
- Not taking into account utilities and transport costs. Taxes are only part of the story; commuting and housing can have a greater impact on your net balance.
- Comparing the "effective rate" between people without context. Two employees with the same net salary may have different net salaries due to deductions and family composition.
Plan large payments for the holiday month. Holiday pay is "instead of salary," not "in addition to." Make sure mandatory deductions are taken into account.
This is an approximate analysis. Rules, rates and terms of deductions are subject to change, and individual parameters greatly affect the net amount. This material is for informational purposes only and does not constitute financial advice. For an accurate calculation, use a calculator and current data.
FAQ
Take the effective rate benchmark for your income level and calculate the average "net/month" = (gross – deductions) / 12. This will give you an order of magnitude, and deductions and your profile (family, children, etc.) will add accuracy.
Holiday pay is paid instead of salary in the holiday month. The amount is shown as a separate line and depends on last year's income. Therefore, the "take-home" pay for the year is uneven: one month may be higher, another may be lower.
Deductions, family status, bonuses, overtime, and even the holiday pay schedule change the basis for taxation and withholding. It is only correct to compare models with the same parameters.
The table rate is a set of rules for deductions based on steps and parameters. The effective rate is the ratio of all annual deductions to gross income; it is convenient for estimating and comparing different offers.
Add them to the gross income for the year in which they were actually accrued. Keep in mind that one-off payments are not always included in the holiday pay base; because of this, the net amount may fluctuate more significantly from month to month.
Yes, standard deductions and family profile reduce the tax base. The final effective rate for a family is often lower than for a single person with the same gross income.
Calculate the average "net" for the year, keep a reserve of at least one month's budget, and spread large expenses outside of the holiday month. This will smooth out cash flow gaps without stress.
