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
Since January last year, Norwegian companies have had to pay additional employer’s tax for high salaries. This move by the government has met with a lot of opposition, both from the business community and NHO, but also from LO and budget partner SV.
– 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.
The aid to Ukraine was one of the reasons for introducing the temporary tax. At the start, incomes over NOK 750,000 were subject to an additional tax of 5 per cent. In this year’s budget, it was adjusted down somewhat by increasing the limit from NOK 750,000 to NOK 850,000.
SV supports
– It is a good decision by the government to propose removing the additional employer’s tax starting next year, says SV’s fiscal policy spokesperson Kari Elisabeth Kaski to NRK.
The party advocates other types of taxes instead.
– This is an unfortunate tax on labor that SV has opposed. We will therefore secure a majority for it, while there is a need for other tax measures that provide more redistribution, says Kaski.
Right: – About time
Second deputy leader and fiscal spokesperson Tina Bru in the Høyre tells NTB that it was high time to clarify the timing of liquidation. She calls the extra tax pointless.
– I have never understood why this extra bill was necessary, but it is very good that the government is removing it completely from next year. It is a shame that the government has to spend time and money on cleaning up problems they themselves have created, but this is an important clarification for business, she says.
– 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 issue for NHO’s members, and we had a clear expectation that the additional contribution would be cut next year, he says to NTB.
The fact that the final date has been determined provides predictability for many thousands of employers and workplaces across the country, he emphasizes.
Tekna president Elisabet Haugsbø is also happy with the government’s clarification.
– Increased employer’s tax had a negative impact on the highly educated and on skills companies. It was therefore important that this did not become a permanent tax. The government has taken a long time to abolish the tax, but we are satisfied that this will happen in January 2025, says Haugsbø.
