Swedish Social Security Contributions Explained (2026 Guide)

Swedish Social Security Contributions are one of the most important, and often misunderstood, components of the Swedish tax and payroll system. For employers, they represent a significant cost. For employees, they form the basis of access to Sweden’s social security benefits. This guide explains how Swedish Social Security Contributions work in practice.

What are Swedish Social Security Contributions?

Swedish Social Security Contributions, known in Swedish as arbetsgivaravgifter, are mandatory contributions payable in connection with remuneration for work. The legal framework is primarily set out in the Swedish Social Security Contributions Act, "socialavgiftslagen" (2000:980).

What types of remuneration are covered?

The contributions are calculated on remuneration paid for work. This includes salary and wages, as well as most taxable employment benefits. The system is designed around employment relationships, and only remuneration that is attributable to work is relevant for Swedish Social Security Contributions.

Although only employers are legally required to pay Swedish Social Security Contributions, the system is closely linked to the individual employee’s social security coverage and entitlement to benefits.

Which authority administers the system?

The Swedish social insurance system is primarily administered by Försäkringskassan. Through Swedish Social Security Contributions, the system finances benefits such as sickness benefits (sjukpenning), parental benefits (föräldrapenning), old-age pensions (ålderspension), survivor’s pensions (efterlevandepension), and certain labour market-related benefits.

How do Swedish Social Security Contributions differ from tax?

Swedish Social Security Contributions are often referred to as a tax on labour, but from a legal perspective they are distinct from income tax.

Legal distinction between tax and contributions

Income tax is paid by the individual and finances the general budgets of the state and municipalities. Swedish Social Security Contributions, on the other hand, are primarily intended to finance specific social insurance benefits that are linked to employment and social security coverage.

The general payroll contribution

One component of Swedish Social Security Contributions is the general payroll contribution, allmän löneavgift. Unlike the other parts of the contribution, this component is classified as a tax in legal terms and is not directly linked to any specific social insurance benefit. Despite this, it is usually included when referring to Swedish Social Security Contributions as a whole. This distinction can become particularly relevant in international situations.

Who is required to pay Swedish Social Security Contributions?

Swedish Social Security Contributions are paid only by employers. This means companies and self-employed individuals who have employees.

Who does not pay Swedish Social Security Contributions?

Individuals without employees do not pay Swedish Social Security Contributions. Instead, self-employed individuals normally pay social security charges in the form of self-employed contributions, egenavgifter, which are regulated separately.

Where must the work be performed?

As a general rule, Swedish Social Security Contributions must be paid if the work is physically performed in Sweden. This applies regardless of whether the employer is Swedish or foreign, whether the employee is resident in Sweden or abroad, and whether the employer has a permanent establishment in Sweden.

Exception for F-tax

If the recipient of the remuneration is approved for F-tax, godkänd för F-skatt, Swedish Social Security Contributions are normally not payable. In such cases, the individual is responsible for their own social security contributions.

How high are Swedish Social Security Contributions in Sweden?

As a general rule, Swedish Social Security Contributions amount to 31.42 percent of the contribution base.

How is the contribution level structured?

The total contribution consists of several underlying parts linked to different areas of the social insurance system, together with the general payroll contribution. Since 2019, the overall contribution level has remained unchanged, although the internal composition of the contributions may be adjusted over time.

Are reduced contribution rates available?

Reduced contribution rates apply in certain situations, for example:

• for younger individuals

• for older individuals

• when only pension contributions are payable

• in situations where Swedish social security legislation does not fully apply

What benefits are financed by Swedish Social Security Contributions?

From the employer’s perspective, Swedish Social Security Contributions are a mandatory cost. From the employee’s perspective, they form the basis for access to the Swedish social security system.

Examples of financed benefits

Swedish Social Security Contributions finance, among other things:

• sickness benefits (sjukpenning)

• parental leave benefits (föräldrapenning)

• pension rights within the public pension system (allmän pension)

• survivor protection

• labour market-related measures
  

Entitlement to these benefits is linked to social security coverage in Sweden and does not depend on citizenship. It also does not necessarily follow tax residency in a strict sense.

Are there situations where Swedish Social Security Contributions do not have to be paid?

Yes. Swedish law provides for several situations where Swedish Social Security Contributions are either reduced or not payable at all.

Typical exemption scenarios

Examples include situations where remuneration is paid to individuals with approved F-tax, where remuneration is paid to individuals above a certain age, where the remuneration is not considered contribution-liable under socialavgiftslagen, or where the individual is covered by another country’s social security system under EU law or a bilateral social security agreement.

These exceptions are frequently misapplied in practice, particularly in international employment situations.

How are Swedish Social Security Contributions paid?

Swedish Social Security Contributions are paid only by employers, meaning companies or self-employed individuals who have employees.

Employer registration with the Swedish Tax Agency

Before any contributions can be paid, the employer must register as an employer with the Swedish Tax Agency, Skatteverket. This applies to both Swedish and foreign employers, provided that Swedish Social Security Contributions apply.

Monthly reporting and payment process

Once registered, Swedish Social Security Contributions are paid on a monthly basis. All employers registered in Sweden are required to submit a monthly PAYE report, known as an employer PAYE return, arbetsgivardeklaration på individnivå.

The PAYE report includes information on salaries paid, taxable benefits, withheld preliminary income tax, and the basis for Swedish Social Security Contributions. The contributions are paid to the employer’s tax account with the Swedish Tax Agency, with deadlines generally falling in the month following the payment of salary.

How do Swedish Social Security Contributions work in international situations?

When work is performed in more than one country, the obligation to pay Swedish Social Security Contributions is not determined solely by Swedish domestic law.

EU and EEA situations

Within the EU and EEA, social security coverage is governed primarily by Regulation (EC) No 883/2004. The core principle is that an individual should be covered by the social security system of only one country at a time.

Non-EU situations

In relation to non-EU countries, Sweden applies bilateral social security agreements where applicable. These agreements determine whether Swedish Social Security Contributions must be paid or whether another country’s system applies.

Practical implications

In practice, work physically performed in Sweden will normally trigger Swedish Social Security Contributions, while posted workers may remain covered by another country’s system. Remote work and split work patterns often require careful analysis to avoid double contributions or non-compliance.

Need advice on Swedish Social Security Contributions?

Swedish Social Security Contributions are straightforward in purely domestic situations, but they often become complex when international elements are involved. This is particularly the case for foreign employers, internationally mobile employees, posted workers, and individuals working remotely from or in Sweden.

We regularly assist clients with questions related to Swedish Social Security Contributions, including employer registration, monthly payroll reporting, international social security coverage, and the interaction between Swedish law, EU regulations, and bilateral social security agreements.

If you are unsure whether Swedish Social Security Contributions apply in your situation, or if you need assistance with compliance or planning, you are welcome to contact us. We provide clear, practical advice tailored to cross-border situations involving Sweden.