Doing Business In Sweden - Social Security

Regardless of their nationality, residents of Sweden are entitled to social security benefits including health care, sickness benefits, child allowances, unemployment benefits, pensions and old age care.

Social security taxes are levied on salaries, wages and the assessed value of benefits in kind and are primarily paid by the employer. Payments are made to several programs but contributions to these various programs are assessed and administered by a single authority.

Employers pay social security taxes at a rate of 32.86% for 1995. However, if earnings are not included in the base for social security taxes, a special salary tax of 21.39% is applicable. Such earnings include, for example, payments to persons over the age of 65. An employer must also pay social security tax on total annual pension contributions at a rate of 21.39%.