Inc. staff
Jan 20, 2011
Comparing Labor Costs in Norway and New York
The cost of having an employee on the payroll in socialist Norway is not as bad as you may think.
Getty
The high value of the kroner makes Norway very expensive for foreigners. (A beer in Oslo can cost $15.) But employing people, especially skilled workers, is surprisingly inexpensive. Here's what one Norwegian tech company, Oslo-based bMenu, pays each year to employ software developers in Norway and the United States.
| Oslo | New York City | |||
|---|---|---|---|---|
| Salary | $100,000 | $100,000 | ||
| Payroll taxes | National insurance contribution, 14.1% of total salary* | $14,100 | Social Security (6.2% of first $106,800) | $6,200 |
| Medicare, 1.45% of salary | $1,450 | |||
| Federal unemployment | $56 | |||
| State unemployment | $349 | |||
| City transit tax | $340 | |||
| Retirement plan | Supplemental retirement plan | $2,100 | 401(k), 6% match | $6,000 |
| Private insurance | Accident and travel insurance | $403 | Workers' compensation | $503 |
| Disability | $56 | |||
| Health insurance, 80% employer contribution | $7,536 (single) $23,360 (family) | |||
| Total salary | $116,603 | $122,490 (single) | $138,314 (family) | |
| Cost of benefits | 16.6% |
22.5% (single) 38.3% (family) | ||
