The disputed extraordinary employer’s tax, which was introduced in 2023, is to be removed on 1 January next year, reports Dagens Næringsliv.
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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.
A lot of resistance
From 2023, the government introduced an additional tax for salaries over NOK 750,000. In 2024, the limit has been raised to NOK 850,000.
The government justified the levy with a need for extra funds due to the war in Ukraine, and emphasized that the levy would be temporary, due to disappear in 2025.
The tax has been criticized for hitting knowledge-based companies in particular, because highly skilled labor is more expensive.
– 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.
– This provides predictability
Managing director Ole Erik Almlid of NHO is pleased that the date has now been set.
– 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 matter for NHO’s members, and we had a clear expectation that the additional contribution would be cut next year, he writes in a press release.
The fact that the final date has been determined provides predictability for many thousands of employers and workplaces across the country, he emphasizes.
