Employer contributions
Employer contributions are the charge a Swedish employer pays on wages and benefits paid out, on top of the wage itself. The full rate is 31.42 per cent of gross pay, with lower rates for certain age groups.
Updated
- Category
Payroll and export
- Also known as
arbetsgivaravgift · sociala avgifter · social security contributions
- Sources
Socialavgiftslagen (2000:980), the Social Security Contributions ActSkatteverket, the Swedish Tax Agency, for current rates
The charge is made up of several parts: old-age pension, health insurance, parental insurance, occupational injury, labour market, survivor's pension and a general payroll levy.
For an employer it means an hour worked costs considerably more than the hourly wage. Any staffing calculation has to add the charge on top, and for many businesses that is the difference between a staffing budget that holds and one that does not.
The rate changes by decision in the state budget, which is one reason a time system should not hard-code it.
How Timply handles it
Timply delivers hours per payroll code to the payroll system. Employer contributions are calculated there, from the pay that is actually paid out.
Related terms
PAXml
PAXml is the Swedish standard format for moving time and payroll records between systems, maintained by SLA. A time system exports an XML file to the standard and the payroll system imports it. The current version is 2.0.
Holiday compensation
Holiday compensation is money paid instead of holiday, usually when employment ends and the employee has earned days that were never taken. It should not be confused with holiday pay, which is the pay received during holiday that is actually taken.
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