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During the pandemic, a number of measures were introduced to mitigate the negative financial impact of COVID restrictions. One of these measures was a temporary reduction of social security contributions for particular age groups during different periods.
During the period 1 January 2021 to 31 March 2023, employers have only paid 19.73% in employer's contributions for people aged 19–23, which in 2023 means people born 2000–2004. This reduction is now coming to an end. As of 1 April 2023, the normal social security contributions rate of 31.42% will also apply to this age group.
Current rates for different age groups
Employers have an obligation to declare and pay social security contributions if total pay exceeds SEK 1,000 during the income year. The actual amount of social security contributions depends on a number of factors. For calculating social security contributions and correctly completing the employer's tax returns form, payroll systems can often handle different age groups and offer good support.
Various calculations such as budgets and forecasts often assume the full social security contributions rate, which is 31.42%. There are cases in which full social security contributions are not paid for particular employees, such as in the case of research and development deductions or growth support.
Below we provide an overarching summary of the rates for different age groups that apply as of 1 April 2023.
|
Year of birth |
Applicable rate |
|
2005-2007 |
10,21* |
|
2000-2004 |
31,42 |
|
1957-1999 |
31,42 |
|
1938-1956 |
10,21 |
|
1937 and earlier |
0 |
*Applies to pay of up to SEK 25,000 per calendar month. For pay over and above this maximum amount, 31.42% applies.
Different rates apply to employers with no permanent establishment in Sweden or with posted staff.
Here at Azets, we follow developments and keep ourselves abreast of the latest news. As an employer, if you have any questions or concerns about HR and payroll, please feel free to contact us.
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