Holiday pay for umbrella-employed workers

When you work through Paidin as an umbrella-employed person, you have the same right to holiday pay as any other employee in Sweden. The difference compared with a traditional employment is that there is no employer holding the money for you. The holiday pay is included in your salary payout. If you want to save the money for your holiday, you can activate a separate set-aside in Paidin's portal yourself.

What is holiday pay?

Holiday pay is a statutory financial compensation for the holiday you are entitled to under the Swedish Annual Leave Act (Semesterlagen 1977:480). When the employment is assignment-based and you do not take paid holiday days, that right is converted into a percentage-based compensation.

The percentage is 12 percent and follows from the percentage rule in section 16 b of the Annual Leave Act: "Holiday pay under the percentage rule shall amount to twelve percent of the employee's earned salary during the qualifying year." It is not a bonus or supplement; it is your holiday right expressed in money.

How it works at Paidin

As an umbrella-employed worker, you have no employer setting money aside for your holiday. The money is yours from the very first payout. This means that the holiday pay is included in your net salary every time an invoice is paid, unless you actively choose otherwise.

If you instead want to save up the money and have it paid out for the summer, you can activate a set-aside under Settings in Paidin's portal. Then 12 percent of each payout is deducted and collected on a separate account at Paidin. The money is paid out in connection with the summer according to the schedule shown in your settings. You can turn off the set-aside at any time.

Detailed instructions for how to activate, change or turn off the set-aside are available in the help article Holiday pay.

Difference from traditional employment

In a traditional employment, you earn paid holiday days during a qualifying year, and the following year you can take those days as paid holiday. The employer holds the money between earning and use, and during the holiday you receive holiday salary.

As an umbrella-employed worker through Paidin there is no qualifying year and no saved holiday days. The financial right is the same, 12 percent under the percentage rule, but you receive the money when the customer pays the invoice rather than in connection with a future absence. If you want to mimic a traditional employer's model and receive the money in the summer, you use the set-aside function in the portal.

Frequently asked questions

Is 12 percent set by law or can it vary?

The 12 percent rate follows from the percentage rule in section 16 b of the Annual Leave Act and is the level applied to assignment-based work. Some collective agreements may provide a higher rate, but 12 percent is the statutory baseline and the level Paidin applies.

How do I see that I have received my holiday pay?

If you have not activated the set-aside, the 12 percent holiday pay is included in your net salary. It is not a separate line on the payslip but part of the amount transferred to your account.

If you have activated the set-aside, the amount set aside is shown separately in the portal and is paid out in connection with the summer.

How do I activate the set-aside for holiday pay?

You activate the set-aside under Settings in Paidin's portal. There you also choose how large a share you want to set aside. Step-by-step instructions are available in the help article Holiday pay.

Can I turn off the set-aside later?

Yes. You can turn off the set-aside at any time under Settings. Money that has already been set aside is paid out according to the schedule shown in your settings.