Do you have employees between the ages of 19 and 23 on your team, or are you perhaps planning to hire new employees at those ages? Soon the employer’s contribution for youths will change (again). Here’s what’s new.
Apart from salary, all employers are required to pay a fee to the Swedish Government to finance social contributions, pensions, and health insurance—a collective term also called employer’s contribution. The full employer’s contribution is currently above 30 percent of the employee’s compensation (monthly salary and potential benefits). However, the size of the employer’s contributions can vary, depending on the employee’s salary level and age.
Full Employer’s Contribution from April 1st
Reducing the employer’s costs – and thereby making youth employment more compelling for employers. That was the purpose when the reduced fees were introduced in January 2021. The new level landed at 19,73 percent for youths between the ages of 19 and 23 (born 2000-2004) with a salary of a maximum of 25 000 SEK per month. Employers have been required to pay the full employer’s fee of 31,42 percent for employees with higher pay. But: this reduction has a time limit, with the end date of March 31st, 2023. So, from April 1st, the full employer’s contribution should be paid for disbursed salaries and benefits of youths between the ages of 19 and 23.
If You’re Using Flex Lön or Flex HRM Payroll
For you who are using any of our payroll systems Flex Lön or Flex HRM Payroll, you don’t have to update the system or make any other adjustments when the reduction expires – the systems already have full support for managing employer’s contributions according to standard levels. Are you using another solution today, but are curious about Flex HRM Payroll – the payroll system that automates and ensures the quality of your payroll process from start to finish?
Please get in touch and we will tell you more!
