How much should I charge as an umbrella worker?
Setting the right price as an umbrella worker can be challenging, especially if you were previously employed. To calculate a reasonable hourly rate, start from your previous salary and adjust for vacation pay, pension and uncertainty.
From employee to umbrella worker
If you previously had a monthly gross salary of SEK 30,000, you can convert this to an hourly rate by dividing by 167 (average working hours per month), which gives about SEK 180/hour. That is your old hourly wage, not what you should invoice. As an employee, your employer also paid for your vacation, pension and employer contributions, and when you invoice, all of that has to fit into the amount you charge.
What the invoice needs to cover
- Vacation pay: 12% of your salary. As an umbrella worker you get no paid vacation, so the compensation is part of your salary and you can set it aside in the portal.
- Occupational pension: about 4.5% of salary, the most common level in collective agreements. A special payroll tax of 24.26% is paid on the contribution.
- Employer contributions: 31.42% of gross salary.
- Paidin's service fee: 4.8% on invoices under SEK 20,000, 3.6% from SEK 20,000 and 2.9% from SEK 50,000, calculated on the invoice amount excluding VAT.
- Uncertainty: no guaranteed income, time between assignments and hours you cannot bill.
Example: the same salary as before, SEK 30,000/month
| Item | Amount |
|---|---|
| Salary | SEK 30,000 |
| Vacation pay, 12% | SEK 3,600 |
| Gross salary | SEK 33,600 |
| Employer contributions, 31.42% of SEK 33,600 | SEK 10,557 |
| Occupational pension, 4.5% of SEK 30,000 | SEK 1,350 |
| Special payroll tax, 24.26% of SEK 1,350 | SEK 328 |
| Total the invoice must cover | SEK 45,835 |
| Service fee, 3.6% | SEK 1,712 |
| To invoice, excluding VAT | SEK 47,546 |
The invoice amount falls between SEK 20,000 and 49,999, so the service fee is 3.6%. That gives SEK 47,546 to invoice per month, roughly 1.6 times your previous salary. Divided by 167 hours this is about SEK 285/hour excluding VAT.
Expect not to bill all 167 hours. If you invoice 140 hours a month, your hourly rate needs to be about SEK 340 to reach the same salary.
To run your own numbers, with your municipal tax rate and your number of hours, use the hourly rate calculator or the salary calculation.
Tips for setting the right price
- Account for tax, employer contributions, pension and vacation.
- Research what others in your field charge.
- Adjust your price for inflation and rising costs.
- Consider whether a fixed price or hourly rate suits the assignment best.
By considering these factors, you can ensure you receive appropriate compensation for your work as an umbrella worker.