For employers
Employment cost in Sweden
Gross salary is the tip of the iceberg. Here is what an employee in Sweden actually costs – per month, per year and as a multiple of gross pay.
What is included in the employment cost?
- Gross salary – what the employee receives before tax.
- Employer social fees – 31.42 % on gross salary (taxes and social contributions paid to the Swedish Tax Agency).
- ITP1 – occupational pension premium under collective agreements: 4.5 % up to 7.5 income base amounts, 30 % above.
- Holiday pay supplement – about 0.8 % per vacation day (25 days = 20 % of a monthly salary per year).
Worked example
An employee on 40,000 SEK/month costs about 54,726 SEK/month or 656,716 SEK/year including employer social fees, ITP1 and holiday pay – a multiple of 1.37×. Adjust salary, ITP1 and holiday pay in the calculator.
What does an employee cost?
Gross salary → total monthly and annual cost incl. ITP1 pension and holiday pay.
Open calculator →Frequently asked questions
- How high are Swedish employer social fees in 2026?
- 31.42 % of gross salary, unchanged from last year. It is a combined fee covering pension, sickness insurance, occupational injury insurance and the general payroll tax.
- Do I have to pay ITP1?
- Only if you have a collective agreement that includes ITP. Many employers without a collective agreement still set up an equivalent occupational pension, which gives roughly the same cost picture.
- What is a good rule of thumb for total cost?
- With a collective agreement and holiday pay you usually land at 1.5–1.55× gross salary. Without ITP1 the multiple is closer to 1.4×.