Calculation of gross annual salary and monthly salary
The employment contract/salary letter, salary states the annual salary. The pay slip shows the monthly gross salary. Many wonder why monthly gross salary is not equal to the annual salary divided by twelve. Here is the explanation:
- The gross annual salary is equal to the agreed annual salary minus the OU deductions (funds that go to the employer and employee organizations' information and development fund, currently NOK 400/year).
- The gross annual salary is paid as a fixed monthly salary and appears on the pay slip with the text Bruttolønn (gross salary).
- Agreed annual salary = NOK 500'000
- Gross annual salary = NOK 500'000 - NOK 400 = NOK 499'600
- The payroll shows the monthly salary as gross salary NOK 41'633.33.
- You can check information about your basic salary in the HR portal, see guide.