Sweden: Pay and benefits

Original and updating author: Laura Carlson

Summary

• Legislation plays little part in pay determination, and pay rates are principally set by collective agreements, which cover a high proportion of the workforce. (See Pay - general)
• There are no statutory provisions governing matters such as the method or frequency of payment of wages, or the provision by employers of itemized payslips. (See Payment of wages)
• Employers must deduct income tax from employees' pay and pass this on to the tax authorities. (See Deductions)
• Employers must make no distinction, either directly or indirectly, in the area of remuneration between men and women who perform equal work or work of equal value. (See Equal pay)
• There is no statutory national minimum wage, and minimum wages are determined at sector level by collective agreements. (See National minimum wage)
• The pensions system consists of the basic old-age pension; occupational pension schemes; and personal pensions. (See Pensions)
• Employers must deduct income tax from employees' pay, and pay statutory social security contributions, calculated as a percentage of their total gross paybill. (See Income tax and social security)
• There are various rules regarding pay for employees absent from work due to sickness. (See Sick pay)
• Employers and trade unions agree on any non-mandatory benefits. (See Benefits in kind)