Employer contributions: what do you actually pay?

Employer contributions (arbetsgivaravgifter) are one of the largest costs associated with every salary payment in Sweden. At the same time, it is a line item that many people find difficult to understand, especially if they have never run their own business. As an umbrella employee through Paidin, you never need to think about calculating, paying or reporting employer contributions. Paidin handles everything towards the Swedish Tax Agency (Skatteverket). In this guide, we explain what employer contributions actually are, what they fund, and how they affect your payout.

What are employer contributions?

Employer contributions are a statutory charge that every employer in Sweden pays to Skatteverket. The charge is calculated as a percentage of the employee's gross salary. In 2026, the total employer contribution rate is 31.42%. This means that for every hundred kronor in gross salary, the employer pays an additional 31 kronor to the state. The money funds the Swedish social insurance system, which gives you the right to sickness benefit, parental benefit, old-age pension and a range of other safety nets. Paidin pays the employer contributions to Skatteverket on your behalf. You can always see how the contributions affect your payout on your pay slip.

How Paidin handles employer contributions

When you invoice, Paidin calculates, reports and pays the employer contributions to Skatteverket every month. You do not need to register with Skatteverket, declare the contributions or keep track of percentages or regulatory changes. Everything happens automatically in connection with your salary payment.

In practice, the employer contribution is deducted from the invoiced amount before your gross salary is calculated. Paidin then reports the contribution in the employer declaration (AGI) submitted to Skatteverket each month. This means that as an umbrella employee through Paidin, you receive the same social safety net as a traditionally employed person, without having to do anything extra.

Temporarily reduced contributions for young workers (2026-2027)

From 1 April 2026 to 30 September 2027, temporarily reduced employer contributions apply for employees who have turned 18 but not yet 23 at the start of the year. For 2026, this means people born between 2003 and 2007. The rate is reduced to 20.81% instead of 31.42%, but only on the portion of salary up to SEK 25,000 per month. Full contributions apply to salary above SEK 25,000.

In practice, this means a young person invoicing through Paidin receives a higher net salary compared to an older person, given the same invoice amount. Paidin applies the correct rate automatically based on your personal identity number and current regulations.

The reduction is temporary. Parliament has decided it applies for a limited period. Paidin always follows current regulations and adjusts calculations automatically when the rules change.

What is included in employer contributions?

The 31.42% is not a single charge but a combination of several sub-contributions. Each component funds a specific part of the Swedish social insurance system. Here is the breakdown for 2026:

• Old-age pension contribution (10.21%) funds the general pension.
• Survivors' pension contribution (0.60%) provides financial protection for surviving family members.
• Health insurance contribution (3.55%) funds sickness benefit during sick leave.
• Parental insurance contribution (2.60%) provides parental benefit and temporary parental benefit (care of children).
• Work injury contribution (0.20%) funds compensation for workplace injuries.
• Labour market contribution (2.64%) funds labour market policy measures, such as unemployment insurance.
• General payroll tax (11.62%) is a state charge not earmarked for any specific benefit.

All of these contributions are paid by Paidin as your employer. You do not need to keep track of the individual components. The important thing to know is that the contributions fund your social safety net: pension, sickness benefit, parental benefit and work injury compensation. Paidin calculates and pays the employer contributions to Skatteverket every month.

Employer contributions vs self-employment contributions

If you are considering whether to invoice through Paidin or start your own company, employer contributions are an important factor to understand. As a sole trader (enskild firma), you do not pay employer contributions but something called self-employment contributions (egenavgifter). Self-employment contributions are at a similar level, 28.97% for 2026, and fund largely the same social benefits. The difference is that as a sole trader, you are personally responsible for calculating, declaring and paying the contributions.

With Paidin as your employer, you avoid the administrative work entirely. You do not need to keep track of applicable rates, make preliminary tax payments or reconcile your tax account with Skatteverket. Paidin handles the entire flow, from invoice to salary payment to tax declaration. This gives you the freedom to focus on your assignment rather than bookkeeping and government reporting.

Another important difference: as an umbrella employee through Paidin, you earn pension rights in exactly the same way as a regular employee. As a sole trader, pension contributions may differ depending on how you structure your business. Paidin ensures that your pensionable income is reported correctly every month.

Frequently asked questions

Are employer contributions shown on my pay slip? Yes. Paidin clearly reports the employer contributions so you can see exactly how your invoice is distributed between contributions, tax and net salary. You can find your pay slip when logged in to Paidin after each salary payment.

Can I influence how much goes to employer contributions? No, the percentage is set by law and determined by parliament. Paidin always applies the current rate. Temporary reductions, such as the one for 18-22 year olds (at the start of the year) during 2026-2027, are applied automatically by Paidin.

What happens with employer contributions if I don't invoice for a month? Employer contributions are only paid when you receive salary. If you do not invoice during a period, no contributions arise and you do not need to do anything. Paidin only reports to Skatteverket for months when you have actually received a salary payment.