Employer social security contributions (arbetsgivaravgifter) are one of the biggest “hidden” costs when hiring in Sweden. In 2026, the total standard rate stays at 31.42%, but the components shift, age rules change, and a temporary youth reduction is introduced from April 2026.
If you run a Swedish company (AB) or employ staff in Sweden as a foreign business, these changes affect payroll budgeting, employment contracts, and how your employer reporting is set up.
What are employer social security contributions in Sweden
In Sweden, employers pay employer contributions on top of salary and taxable benefits. For most employees, the “full rate” applies. In 2026, the total employer contribution is 31.42%.
This is separate from income tax withholding and separate from corporate tax. It’s an employer cost, so it directly impacts your hiring budget.
What changes in 2026: the total rate stays, the components change
The headline number is stable, but Sweden changes how that 31.42% is built up. Skatteverket’s 2026 breakdown shows the employer contribution components as:
Old-age pension contribution: 10.21%
Survivor’s pension contribution: 0.30%
Health insurance contribution: 3.55%
Work injury contribution: 0.10%
Parental insurance contribution: 2.00%
Labour market contribution: 2.64%
General payroll tax (allmän löneavgift): 12.62%
Total: 31.42%
Practical takeaway: your payroll cost planning can still use 31.42% as the default, but if you track contributions by component (or you have internal reporting that splits them), you’ll want to update templates and payroll logic for 2026.
Age-related rules in 2026 in Sweden
From 1 January 2026, the “full rate” does not apply forever. Employers only pay the full employer contributions up to the year an employee turns 67. After that, the employer pays only the old-age pension contribution (10.21%).
This matters for:
workforce planning (senior hires become cheaper from an employer-contribution perspective)
correct payroll configuration (wrong age rules = wrong employer cost and reporting)
Temporary reduced employer contributions for young employees from 1 April 2026
A temporary reduction applies for young workers aged 19–23 from 1 April 2026 to 30 September 2027. The policy is designed to reduce employer costs (up to SEK 2,700 per month per employee depending on salary).
Key practical point: this is not a “set and forget” change. Payroll systems need to apply the reduced rules only during the valid period and within the limits described in the official guidance.
Foreign employers: lower contribution rate if you have no permanent establishment
If you are a foreign employer without a permanent establishment in Sweden, Skatteverket states that the general percentage of social security contributions is 18.8% in 2026 (with exceptions and lower rates in some cases).
This is highly relevant for international businesses that:
employ staff in Sweden while operating from abroad, or
start in Sweden with a lean setup before establishing a permanent presence
If you are not sure whether you have a permanent establishment, treat it as a compliance decision, not an assumption, because it affects your contribution rate and reporting obligations.
SINK in 2026: lower special income tax for non-residents
If you hire non-residents or your team includes people working in Sweden temporarily, SINK (special income tax for non-residents) is often part of the conversation.
The Swedish Parliament decided that SINK is reduced from 25% to 22.5% from 1 January 2026, applying to income received after 31 December 2025.
This is separate from employer contributions, but in real life these topics collide: international hiring usually involves both payroll tax handling and the correct income tax regime.
Common payroll mistakes international founders make in Sweden
Most “issues” are not complex tax planning. They’re operational:
hiring first, then registering as an employer too late
applying the wrong age rule (67+) in payroll
misunderstanding whether the company has a permanent establishment (and therefore applying the wrong contribution rate)
not aligning employer reporting routines with actual salary payment dates and benefits
These mistakes usually cost time, penalties, and rework, exactly when founders want payroll to be boring and predictable.
How 1Office Sweden can help (without making payroll your second job)
If you want Sweden payroll to run cleanly in 2026, the winning setup is straightforward: correct registrations, correct payroll logic, correct reporting cadence.
Where 1Office Sweden fits in:
employer setup and payroll compliance support
payroll calculations aligned with 2026 contribution rules (age rules, temporary reductions)
support for international employers navigating permanent establishment questions and Swedish reporting expectations
Planning to hire in Sweden or already running payroll? Talk to 1Office Sweden to ensure your 2026 employer contributions and reporting are set up correctly from day one.
