Reduced Employer Contributions for Young Workers
- What does the reduction in employer contributions mean?
From April 1, 2026, to September 30, 2027, employer contributions are temporarily reduced for employees who have turned 18 but not yet 23 at the start of the calendar year. The combined rate drops from 31.42% to 20.81%. The old-age pension contribution (10.21%) is paid in full, while all other contributions and the general payroll tax are halved.
- What does this mean for me as a self-employed worker via Paidin?
Since Paidin is your employer, we pay lower employer contributions for you during this period. This means a larger share of your invoice payment can be paid out as net salary. You do not need to take any action. Paidin handles the calculation automatically.
- Who qualifies?
Employees who have turned 18 but not yet 23 at the start of the calendar year. For 2026, this applies if you were born between 2003 and 2007. For 2027, it applies if you were born between 2004 and 2008.
- Is there a salary cap?
Yes. The reduction applies to gross salary up to SEK 25,000 per calendar month. If your gross salary exceeds SEK 25,000, the full employer contribution rate (31.42%) applies to the amount above the cap.
- How is the contribution calculated if my salary exceeds SEK 25,000?
The contribution is split. Example with a gross salary of SEK 30,000:
- SEK 25,000 × 20.81% = SEK 5,202.50
- SEK 5,000 × 31.42% = SEK 1,571.00
- Total: SEK 6,773.50 (instead of SEK 9,426 at the full rate)
- How long does the reduction last?
The reduction applies to salaries paid out between April 1, 2026, and September 30, 2027. The payment date determines eligibility, not the period the salary relates to.
- Does it apply to all types of compensation?
Yes. The reduction applies to all compensation subject to employer contributions: salary, holiday pay, unsocial hours supplements, and similar.
- Where can I read more?