Yoga, spinning, padel, or perhaps a massage package. A growing number of workplaces are offering wellness allowances to promote employees' health and strengthen the employer brand. But how does this actually work? What amounts apply, and which activities are approved? Here's a summary of the guidelines for the wellness allowance in 2025.
Let's start with the basics. What does the term wellness allowance entail, and what can it be used for? In short, the wellness allowance is a popular employee benefit allowing employers, tax- and charge-free, to provide their employees with opportunities for simple forms of exercise and wellness activities. It can also be used for activities that are not exercise-related but are stress-relieving or relaxing, such as massage. To qualify as a tax-free benefit, it must be offered equally to all employees.
Typically, the employee submits their receipt for the activity and receives reimbursement from the employer. It is also becoming increasingly common for employers to sign agreements with some form of wellness portal where the employee orders the desired service and pays with their wellness allowance directly through the portal.
What Amounts Apply?
How big or small can the wellness allowance be? Well, it's up to each employer to determine the size of the allowance. However, the Swedish Tax Agency has set a cap of 5,000 SEK for the wellness allowance to remain tax-free. Employers can choose to provide a higher amount, but then the employee must be taxed on the entire amount.
For activities without exercise elements, such as massage, there is an upper limit of 1,000 SEK per session for them to be offered within the tax-free wellness allowance.
What Activities are Approved for the Wellness Allowance 2025?
Previously, the Swedish Tax Agency used to publish a long list of approved activities from A to Z – something they have now decided to discontinue. The issue was that the list might be perceived as a complete guide on allowed activities, which was not the intention. Additionally, it was challenging to keep the list updated as new activities emerge or change names. Now, it is up to each employer to decide which activities should be offered as wellness activities. However, the same rules still apply: the activity in question should be of a simple nature and minor value.
Most exercise activities and sports meet the Swedish Tax Agency's criteria, but some examples of those covered by the wellness allowance in 2025 are:
- ball sports, such as football, bandy, padel, and tennis
- golf
- horseback riding
- sailing
- gym membership and individual gym training
- yoga, massage, and acupuncture
- ski lift passes
- apps and web services for yoga, weight loss, and smoking cessation
Non-eligible activities:
- membership fees
- theoretical courses
- diplomas
- health and medical care
- beauty treatments
Source: Swedish Tax Agency
How Does It Work with Equipment?
Yoga mats, new running shoes, or dumbbells... Maybe the employee wants to spend the wellness allowance on equipment – are they allowed to? The short answer is: no. The basic rule is that the wellness allowance can only be used for the activity itself, not the equipment needed to perform it, whether you rent or buy the equipment.
However, there are some exceptions. Equipment that is included as a mandatory part of the activity price is covered by the wellness allowance. This can include things like shoes and balls used in bowling.
Many Good Reasons to Invest in Wellness
Encouraging exercise and wellness as an employer has several advantages: it strengthens the employer brand, improves employees' well-being and performance, and reduces sick leave.
In fact, studies show that every Swedish krona invested in wellness returns more than four kronor in reduced absenteeism and increased efficiency. The best results are achieved by companies that work strategically, long-term, and with measurable and concrete goals. Many employers choose to track how employee sick leave develops, thus getting proof that their wellness initiatives are paying off.
Would you like to monitor absenteeism at your company over time and easily compare it across different departments? With the dashboard in Flex HRM, managers and HR have a perfect tool for generating statistics on absenteeism and other key metrics. Everything is packaged in a clear and intuitive way, with pie charts, graphs, and gauges with green/yellow/red lights. A few simple and quick clicks are all it takes – a once time-consuming procedure now handled in just seconds. Want to know more about the benefits? Feel free to contact us!
