Looking through your longslipp – a pay slip from a Norwegian job – you may come across items that sound quite mysterious at first glance.Fri bil"? "Fri phone”? Unfortunately, these are not salary supplements, but also not ordinary deductions.
What do they really mean? And why do they affect your net salary? In this article, we explain what NOK stands for and how they can affect your salary in Norway.
“Fri bil” – private use of a company car
Fri bil is a position on the lønnslippie indicating the value assigned to the private use of a company car. In Norway, private use of a company car (e.g. commuting home) is treated as additional taxable income. In other words, if your employer provides you with a car and you also use it outside of your work duties, the value of such “free car” (fri bil) is added to your income. This amount is not paid in cash – it is used only to calculate tax, so you feel it as a deduction from your salary (you have a lower net pay by the tax due on this benefit).
How is this amount calculated? Norwegian tax regulations establish the standard value of such a benefit based on the vehicle's list price as new (including optional equipment). For example:
- In 2025, 30% of the car value up to NOK 362 and 300% of the excess over this value are added to the employee's income.
- For older vehicles (over 3 years) or intensively used for business purposes (over 40 km/year), a reduced initial value (000% of the car's catalogue price) is applied, which reduces the tax base. When both conditions apply, only 75% of the new vehicle's catalogue price is taken into account.
- This amount is then divided by 12 to obtain the monthly deduction.
The employer is obliged to show this non-cash income in the system every month – hence it appears on your pay slip.
Do you always have to pay tax on a company car? There is a small exception. If you use a company car privately occasionally – no more than 10 days per year and up to 1000 km per year – no tax liability arises in this respect. In such a case, it is useful to keep a vehicle logbook (kjørebok) confirming such limited use. After exceeding this limit, regardless of the kilometres travelled above the threshold, the benefit "fri bil" will already be charged.
“Fri phone” – private use of a company phone
Similarly to a car, free phone na lønnslippie means the benefit you get when your employer covers the costs of your work phone (or internet) when you use it privately.
Norwegian tax law provides for a flat-rate benefit here. If your employer pays for your telephone, subscription or home Internet, a fixed amount is added to your income (for tax purposes only, of course). Currently, the employee is taxed on a maximum amount 4 NOK per year, regardless of whether the company covers the higher bills. This corresponds to adding approximately NOK 366 per month to your income (for a full year of use). The amount of NOK 4 is the limit - if the employer pays for several services (telephone, Internet) or very high bills, only this maximum value is calculated anyway.
In practice, this means that an item will appear on lønnslippie every month. free phone (sometimes also described as free internet/free EKT) with an amount of approximately NOK 366. As in the case of a car, this is not an additional payment, but a value from which tax is calculated.
It is worth adding that if an employee does not use a company phone privately at all (e.g. leaves it at work and does not take it home), then such a fee is not charged. However, in most cases, the mere possession of a company phone outside of working hours is treated as a possibility of private use, so a flat-rate tax is normally charged.
Other deductions on your Norwegian pay slip
In addition to the position fri bil i free phone, you will find a number of other deductions and additions on Norwegian payslips:
- Skatt / Forskuddstrekk (advance tax) – this is the amount withheld from your salary for income tax. In Norway, your employer is required to withhold an advance payment according to your tax card (percentage rate or table). The advance payment amount is shown on each paycheck and at the end of the year it is settled in your annual tax return. This way, you pay taxes on an ongoing basis from each salary, avoiding a large surcharge at the end of the year.
- Pension contribution (pension contribution) – some employers deduct part of the salary for the employee pension fund. In the public sector, the standard is, for example, 2% of the salary to be put aside for the state pension fund (e.g. KLP) – the pay slip may include the following item: Pension bonus 2%. In the private sector, most companies finance the compulsory pension contribution (OTP, Obligatorisk Tjenestepensjon) entirely themselves, but if your employer requires employee participation in the contribution, you will see the corresponding amount as a deduction.
- Trekk i lønn for ferie / Ferietrekk (deduction towards feriepenger) - The Norwegian holiday system provides for payment holidayspenger (holiday allowance) instead of your normal salary during your holiday. The standard rate of holiday allowance is 10,2% of your annual salary (deposited in the previous year). When it's time to take your holiday (usually once a year, e.g. in the summer), your employer pays you your holiday allowance and at the same time makes a deduction corresponding to your holiday pay. This means that you don't get paid twice for your holiday - holiday allowance replaces your salary. This can be shown on your pay slip as a line “trekk i lønn for the holidays”, often calculated as a full month's salary plus a fraction of the next month.
- Other deductions – depending on the situation, other deductions may also appear on the lønnslippie, e.g. bailiff's seizures or refunds of overpayments (often marked as trekking), group insurance premiums, private medical subscriptions paid by the employer, etc. If you have tax arrears or a fine to collect, your employer may receive an order to deduct from your salary (trek and flight) for the benefit of the office – such a situation will also be recorded on the salary slip.
Summary
concepts "fri bil" i “fri phone” that appear on the Norwegian pay slip concern the private use of the company car and telephone. These are non-wage benefits, which according to Norwegian rules are taxable as part of your income.
In practice, the company adds a certain amount to your gross salary for tax purposes (you don't receive this money "in hand", but pay tax on it). This way, you pay tax on an ongoing basis for the benefits you derive from a company car or a privately used phone.
On lønnslippie you will also find other deductions, such as withholding tax (tax), possible contributions to the pension fund (guesthouse), union dues (fagforeningskontingent) or deductions related to the payment of holiday pay. It is worth reading your pay slip carefully - all these items will help you understand how your salary is calculated and what taxes and fees are deducted from it.
Do you have questions about taxes in Norway?
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Author of the article: Marcin – marcin@efirma.no
