Social security contributions in detail

Under Swedish law, the employer must pay contributions calculated on the total salary, benefits (excluding occupational pension contributions) and other remuneration paid to the employee.

For the year 2020, employer contributions amount, in general, to 31.42% of the employee’s total salary, including taxable benefits. However, for employees born between 1938 and 1954, employer contributions are 10.21%. There are no contributions for employees born in 1937 or earlier. There is no overall cap on contributions.

The payment is made monthly in conjunction with salary payments and covers, for example, statutory payments of pension, sickness insurance and insurance for occupational injuries. The employee is not expected to pay any social security contributions.

Occupational pension contributions are treated differently because those contributions are subject to a special income tax that is lower than employer contributions. Currently the special income tax rate is 24.26%.

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Author: Elmzell

Date: April 2020

Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.