Norway - Minimum Wages - 2011

29 August 2012

Working Environment Act (Act No. 62 of 2005), dated 17 June 2005, Norsk Lovtidend, Part I, 2005-07-08, Vol. 8, No. 62, pp. 1112-1143 and Norsk Lovtidend, Part I, 2005-08-05, Vol. 9, No. 609, p. 1371, as amended up to 24 June 2011 by Act (No.18 of 2011).

Labour Disputes Act No.1, dated 5 May 1927 as amended up to June 5th, 1981.

Collective Agreement for the Building Industry (FOB) 2010-2012. Agreement between NHO- The Confederation of Norwegian Business and Industry and BNL - The Federation of Norwegian Building Industries, on the one hand, and LO - The Norwegian Federation of Trade Unions (LO) and The United Federation of Trade Unions (Fellesforbundet), on the other hand. Applicable from 1 April 2010

"Employee" shall mean any person who carries out work of any kind for remuneration in another´s employ and who is not covered by the Act relating to Public Services Disputes.

"Employer" shall mean any person who employs one or more employees.

There is no statutory minimum wage in Norway; minimum wage rates are established through sectoral collective agreements.

There is no statutory minimum wage in Norway, instead, collective agreements are the source of major importance to the regulation of wages and working conditions per sector. The minimum wage rates determined through collective agreements apply to all wage earners in the sector covered by a collective agreement, regardless of whether they are members of the trade unions that negotiated the agreement.

To this respect, the Collective Agreement for the Building Industry (FOB) 2010-2012 has been taken as the sector of reference, in line with the purpose of this database to provide data on the manufacturing industry. This Agreement applies to all building and building-related activities and associated work.

Provisions that stipulate the criteria to be taken into account when setting minimum wages could not be identified.

The minimum wage rates determined through collective agreements apply to all wage earners in the sector covered by a collective agreement, regardless of whether they are members of the trade unions that negotiated the agreement. Employment contracts providing employment conditions less advantageous than those set forth in the applicable collective agreement shall be void.

The Collective Agreement for the Building Industry 2010-2012 applies to skilled and unskilled workers in all building trades.

In Norway, collective agreements are the source of major importance to the regulation of wages and working conditions.
In the private sector around 50% of the workforce is organized and subordinated to a collective agreement.

As determined by collective agreement.

As determined through collective agreements.
The Collective Agreement for the Building Industry 2010-2012 applies to workers in all building trades.

As determined by collective agreement, however most sectoral agreements are nation-wide. In the Collective Agreement for the Building Industry 2010-2012 the minimum wage rates do not vary by region.

Apprentices shall be paid according to the pay system for the enterprise.

The Collective Agreement for the Building Industry 2010-2012 sets minimum wage rates for apprentices as a percentage of the hourly rate for newly trained skilled workers in the enterprise, starting with 30 per cent in the first half-year in the enterprise.
The applicable percentage will progressively vary taking into account the seniority in the entreprise.
Trainees are paid according to the scale for apprentices.

As determined by collective agreement.

The Collective Agreement for the Building Industry 2010-2012 provides lower rates of payment for workers under 18 years old.

For young employees, the guaranteed minimum earnings shall be NOK 93.00 with effect from 17 April 2010. With effect from and including 1 April 2011, the guaranteed minimum earnings shall be NOK 96.00.

The Collective Agreement for the Building Industry 2010-2012 provides different rates of pay for skilled and unskilled workers regarding piece-rate work.

Skilled workers participating in piecework shall have 100% of the calculated piecework earnings per hour of skilled work.

Employees who have no trade or craft certificate shall, however, have a percentage of the piecework rate. The pay shall be determined by discussion between the piecework team and the employer relative to relevant job experience, and may amount to up to 90% of the skilled worker’s piecework earnings and be charged to the piecework in the ordinary way.

The Collective Agreement for the Building Industry 2010-2012 provides different minimum wage rates for skilled, usnkilled and specialised workers.

The Collective Agreement for the Building Industry 2010-2012 provides different guaranteed minimum earnings for 1. skilled workers (workers who have a trade or craft certificate in the appropriate trade or who have a vocational certificate), and for 2. unskilled workers, which are fixed as follows:

1. - With effect from and including 17 April 2010 skilled workers shall enjoy the guaranteed minimum earnings of NOK 154.50 per hour, and with effect from and including 1 April 2011 workers shall enjoy the guaranteed minimum earnings of NOK 159.00 per hour.

2. - For employees who do not have any trade or craft experience, the guaranteed minimum earnings shall be NOK 139.00 per hour, with effect from and including 17 April 2010. With effect from and including 1 April 2011, the guaranteed minimum earnings shall be NOK 143.00 per hour.

For employees who have at least 1 year’s experience in their trade, the guaranteed minimum earnings shall be NOK 144.50 per hour with effect from and including 17 April 2010. With effect from and including 1 April 2011, the guaranteed minimum earnings shall be NOK 149.00 per hour.

For bricklayers/masonry workers who have 6 months’ experience, the guaranteed minimum earnings shall be the same as for skilled workers.

1 April 2011

Collective Agreements provide the guaranteed minimum earnings hourly.

The Collective Agreement for the Building Industry enters into force 1 April 2010 and applies until 3l March 2012 and thereafter for one year at a time unless terminated by one of the parties at two months notice in writing.

Before the end of the first year of the Agreement, negotiations shall be opened concernign possible adjustments for the second year of application.

The Labour Court determines disputes relating to collective agreements that could not be solved via negotiations. Any party to a collective agreement, found guilty of breaching that agreement may be ordered to pay damages as determined by the Labour Court.