Cost of an employee in Sweden 2026

Employer contributions in Sweden 2026

Example: employee with a monthly salary of SEK 35,000

What is included in the cost of an employee?

On top of the gross salary, the employer pays employer contributions (arbetsgivaravgifter), normally 31.42 % of the salary. They cover pension, health insurance and other social security. Then comes holiday pay and – if the company has a collective agreement or offers it – occupational pension, on which the employer also pays a special payroll tax of 24.26 %. Equipment, insurance and other staff costs add to the total.

Unlike many other countries, Sweden has no statutory minimum wage. Wages are set by collective agreements in many sectors, so check whether an agreement applies to your industry before you set the salary.

Växa-stöd – reduced contributions for your first employees

A company that has had no employees, or has one employee, can get växa-stöd for its first two employees. For 24 months only the retirement pension contribution of 10.21 % is then paid on salary up to SEK 35,000 a month. Contributions above the ceiling follow the normal rules. The employer and the employment must meet the conditions; owners and close relatives are normally not covered.

From 1 January 2026 the employer first pays the full contributions and then applies for a refund in the Swedish Tax Agency’s e-service. Approved support is paid back to the tax account. The final cost is lower, but the company has to finance the difference for a while.

Wage support from the Swedish Public Employment Service

Nystartsjobb (new start jobs), introduktionsjobb (introduction jobs) and lönebidrag (wage subsidy) are decided by Arbetsförmedlingen for each employment. Enter the monthly amount from your decision in the calculator and it is deducted from the cost.

What does holiday cost?

Employees in Sweden are entitled to at least 25 days of paid holiday a year under the Annual Leave Act (semesterlagen). With a fixed monthly salary, the employee keeps the normal salary during holiday, so it is already part of the monthly cost. The extra cost is the holiday supplement (semestertillägg): by law 0.43 % of the monthly salary per paid holiday day, plus employer contributions.

Example: with a monthly salary of SEK 35,000 and 25 holiday days, the supplement is SEK 150.50 per day, SEK 3,763 a year. Including employer contributions the extra cost is about SEK 4,940 a year. Many collective agreements give more – for example 0.8 % per day for private-sector white-collar workers.

For hourly employees, and where variable pay is at least 10 % of total pay, the percentage rule applies instead: holiday pay is 12 % of the holiday-qualifying pay for 25 days.

Other employer obligations in Sweden

Before paying the first salary you register as an employer with the Swedish Tax Agency, usually via Verksamt.se. Every month you deduct preliminary tax from the salary and file an employer declaration at individual level (arbetsgivardeklaration, AGI), normally by the 12th of the following month (the 17th in January and August). Tax and contributions are paid to the company’s tax account.

If the employee is sick, the employer pays sick pay (sjuklön) of 80 % of the salary for the first 14 days, minus a qualifying deduction (karensavdrag). From day 15 the Swedish Social Insurance Agency (Försäkringskassan) takes over.

How the budget works

The calculator uses a fixed monthly salary and the same-salary rule. Variable pay and holiday are spread evenly over twelve months. The 2026 annual budget takes into account that the youth reduction starts in April. Actual payment months, monthly ceilings, support periods and your collective agreement can change the outcome.