Pension, benefits, certificate of coverage
The Swedish social security system
Sweden has a comprehensive social security system comprising e.g. old age pension, unemployment and disability benefits, sickness and parents’ allowance and child and youth benefits. The social security system is mainly financed through employers’ contributions.
An individual is covered by the Swedish social security system if the assignment period in Sweden is expected to last for more than one year and the individual is not exempted from Swedish legislation through a Certificate of Coverage.
If the individual is seconded from an EU/EEA-country and is covered by a Certificate of Coverage (A1, former E101), the Swedish social security regulations are not applicable.
Sweden also has social security conventions with a number of countries, stating that seconded employees may remain affiliated to the home country social security system. An individual who is seconded from the US, India, South Korea or Canada, and has a Certificate of Coverage, will continue to belong to the home country pension system. Thus, the individual will not benefit from the Swedish pension system. However, full access to the Swedish National Health Insurance System will be given, if the assignment is expected to last for more than one year.
Social security charges
The statutory employer social security charges amount to 31.42 percent (for 2018) of the total remuneration paid to the employees, including all taxable benefits in kind. Employees do not contribute to these charges. In addition, an employer bound by a collective agreement, pays on average approximately 18 percent of salaries to cover the cost of contractual pension plans.
No Swedish social security charges are paid for EU/EEA citizens who are covered by their home country social security scheme. The same applies for assignees from convention states. However, reduced charges are paid for individuals seconded to Sweden from the US, India, South Korea and Canada, as they are not part of the Swedish pension system.