Monday, December 26, 2011

What’s a good salary to start with, at Norway?

This is perhaps the most important question that everybody has in mind, while migrating to any new location or a job. Well, a simple answer is I don’t know. Some people can manage expenses under 10000 NOK/month, while some find it difficult to manage even at 25000 NOK/month. An ideal salary depends on a lot of factors such as:
  1. What’s your standard of living?
  2. What’s your expense breakup?
  3. What are your financial objectives?
  4. How long you wish to stay here?
  5. How much professional experience you have and in which domain/industry?
  6. Are you coming alone, or with family and dependents?
  7. Can you choose to stay in shared housing or desire an independent apartment?

However, you can visit the cost of living section and then based on your inputs for the above questions, you can arrive at a reasonable figure. However to put it into a perspective, these tips might be helpful:
1.  First of all try to negotiate for a Tax paid salary on a Net mode (i.e. Company pays your taxes and you get a fixed amount in your bank). Otherwise, you can see a drastic difference in your offer letter and the final figure that you receive in your bank account. I am yet to understand the taxation system fully, but a rough figure is that taxes are at whopping 28%(minimum) to 49%(maximum) in Norway, so you have been warned! 
 
2.  The cost of living, esp. housing, is extremely high (See Cost of Living Here) in Norway and it was world’s most expensive country, as per on of the 2009 survey.

To sum up, per my calculations, it may not be wise for an expat to live in a salary (nett, after all taxes have been paid for) below 15000 NOK/month. Anything below that figure and perhaps you will perhaps be better off in your home country if you have a skilled job and it is easy for you to get one in your home country.

8 comments:

  1. very nice and useful article..

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  2. Comment to point 1 - that avrage taxation level in Norway is around 28%. For example if you have a gross salary on NOK 400.000 you pay NOK 109.950 in tax based on the 2011 rates. With NOK 300.000 you pay NOK 74.150 and gives tax rate on 24,7%. And NOK 500.000 the tax is 148.342 and gives a tax rate on 29,7%. These calulations doesn't consider interest expenses or interest income and/or other deductions except the standard fixed deduction.

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  3. This comment has been removed by the author.

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  4. @Pearl

    I had perhaps mentioned to you earlier, that if you don't know Norwegian, it's near impossible to find any decent job, and perhaps that's why you aren't receiving any reply.

    Secondly, I am on secondment here, and therefore have no idea how you can get a job here. You need to contact some job consultancy agency or figure out on your own. Job listings are usually posted on finn.no.

    Good luck

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  5. Hi Andy,
    Thanks for writing such a brilliant blog! This is quite helpful for the people who want to relocate to Norway.

    I am a software engineer myself, and have been offered a sr. software engineer job for 55000 euros. Do you think that would be at manageable for a single guy to live in Oslo? Waiting for your comment on this! :)
    Naveen

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  6. @Naveen

    At 400000NOK/year this is an average starting salary for IT experience of 1-3 years. Check out other section in my blog, to calculate your cost living based on your individual lifestyle.

    If you share an accommodation you might be able to save some funds. Also, if the salary is not paid, remember that you will incur a tax of mimimum 30% on the above salary.

    Good luck

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  7. @Andy

    Thanks for replying back... I have few questions for you, hope you wont mind answering that for me, :)

    1. What according to you should be the salary of an employee with 7 years of experience in software industry? (To be precise..I am from Java, J2EE, web technologies background).

    2. I couldnt understand when you said "Also, if the salary is not paid, remember that you will incur a tax of mimimum 30% on the above salary." Could you please elaborate?

    Thanks

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    Replies
    1. @Naveen

      1. I have no idea how much salary you should get, you should perhaps do some search on Norway job portals to figure out the statistics

      2. To be read as "Salary is not tax paid", i.e. Post Tax.

      Delete

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