What does an employee cost per year?

Multiply the total monthly cost by 12. An employee with a SEK 45,000 salary and ITP1 costs the employer roughly SEK 800,000 per year.

How do växa-stöd and other hiring subsidies affect cost?

Växa-stöd lowers employer social fees to 10.21 % for a period for the first employee in a one-person company. Nystartsjobb and certain wage subsidies are credited on the tax account. The subsidies don't change ITP1 or holiday pay.

How high are Swedish employer social fees in 2026?

The standard rate is 31.42 % of gross salary. For people born 1938–1958 a special senior pension rate applies, which is lower.

Are the employer social fees negotiable?

No. They are set by law and the same for every employer regardless of industry or size. The only thing that lowers them is targeted support such as växa-stöd or new-start jobs.

How does the ITP1 ladder work?

The pension premium is 4.5 % of salary up to the breakpoint and 30 % on salary above, up to the ceiling. ITP1 applies from age 25 and is calculated on the gross salary paid in cash.

What is the Swedish special payroll tax on pension costs (SLP) and do you include it?

SLP (Särskild löneskatt på pensionskostnader) is a special payroll tax on pension costs that the employer pays to the Swedish Tax Agency on top of any occupational pension premium. It is calculated on the ITP1 premium, i.e. 24.26 % of the amount paid for occupational pension. For an ITP1 premium of SEK 2,025/month (roughly a SEK 45,000/month salary), SLP is 24.26 % × SEK 2,025 ≈ SEK 491/month (≈ SEK 5,900/year). It is included in the total when ITP1 is enabled; without ITP1 there is no SLP.

Is it true that ITP1 costs the same regardless of salary level?

No. Below the breakpoint the premium is 4.5 %. Above it the premium is 30 % on the excess – almost seven times more per krona. A raise from 52,000 to 55,000 SEK/month therefore costs much more in pension than a raise from 40,000 to 43,000.

How much do I save by raising under the breakpoint rather than above?

On an extra SEK 3,000 in monthly salary below the breakpoint you pay about SEK 135 in ITP1 premium. The same raise above the breakpoint costs SEK 900 in pension – six times more. Always model both scenarios before a salary review for senior roles.

What is the multiple?

The multiple is the total monthly cost divided by gross salary. A typical white-collar employee with ITP1 lands around 1.45–1.55× salary, depending on the salary level.

Is hiring a consultant cheaper than an employee?

Rarely for the same workload. An employee costs around 1.5× gross salary all-in. A consultant invoices SEK 800–1,500/h excl. VAT and you pay for risk, profit and admin on top of pay. Convert to an equivalent monthly fee and compare against your calculation.

Are benefits like company car and wellness allowance included?

Not automatically. Benefits are taxable and increase both the employee's tax and your social fees on the benefit value. Add the benefit value on top of the gross salary in the calculator to see the total cost including benefits.

What does a probationary employment cost versus a permanent one?

Salary cost is identical – social fees, ITP1 and holiday pay apply from day one. The difference is notice period and risk, not gross pay.

Do you include other agreement premiums?

No. TGL, TFA, sick pension and premium waiver vary between agreements. We give an estimated 0.2–0.5 % markup that you can add manually.

What is the source of the constants?

Employer social fees from the Swedish Tax Agency, IBB from the Swedish Pensions Agency / Tax Agency, ITP1 from Collectum and the holiday pay supplement from the Swedish Annual Leave Act. Values are updated annually.

Cost calculator

What does an employee cost in Sweden?

What does an employee cost in Sweden? Enter the gross monthly salary and we calculate the total employer cost including social fees, ITP1 pension and holiday pay. Use it for salary reviews, recruitment and budgeting – rates apply for 2026.

Inputs

Applies to employment in Sweden.

Gross monthly salary (SEK)

Collective agreement with ITP14.5 % up to 52,125 SEK (≈ €4,535)/month, 30 % above. Applies from age 25.Include holiday pay supplementSammalöneregeln: 0.43 % × 25 days/year.

Result

X LinkedIn Facebook WhatsApp

Total / month

62,058 SEK (≈ €5,399)

Total / year

744,701 SEK (≈ €64,789)

Multiple of salary

1.38×

Total ÷ gross salary

Bruttolön45 000 kr
Arbetsgivaravgift14 139 kr
ITP12 025 kr
Särskild löneskatt (SLP)491 kr
Semestertillägg403 kr

≈ 0,2–0,5 % tillkommer (TGL, TFA, sjukpension, premiebefrielse)

Applies to employment in Sweden.

Breakpoint insight: Salary above 52,125 SEK (≈ €4,535)/month carries a 30 % pension premium instead of 4.5 %. An increase of SEK 1,000 above the breakpoint then costs about SEK 1,615 in total, versus about SEK 1,360 below the breakpoint.

What does an employee cost in Sweden? How we calculate total salary cost

Total employer cost consists of three main parts on top of gross salary. The employer social fee is 31.42 % of gross salary in 2026 and is the same for essentially every Swedish employer. On top comes occupational pension if you have a collective agreement. For white-collar employees ITP1 applies: 4.5 % of salary up to 7.5 income base amounts per year (52,125 SEK (≈ €4,535)/month in 2026), and 30 % on salary above that, up to 30 income base amounts. The ITP1 breakpoint is therefore especially important to know in salary discussions: every extra thousand above the breakpoint costs much more than below.

The holiday pay supplement is calculated under the sammalöneregeln rule: 0.43 % of the monthly salary per vacation day. With 25 days per year that is on average about 0.9 % of salary, spread over the year. On top of ITP1 there are often TGL, TFA, premium waiver and possibly sick pension – an estimated 0.2–0.5 % which we don't include automatically because it varies by collective agreement.

When you need to know what an employee costs

The calculator is used mainly in three situations. Recruitment: before you submit a salary offer you want to know what the candidate actually costs per month and year, not just the gross salary. Salary review: compare cost before and after a raise – especially when someone is near the ITP1 breakpoint, where every krona above costs almost seven times as much in pension as below. Budget and forecast: calculate total personnel cost for next quarter or year and check against revenue per employee.

The multiple – total cost divided by gross salary – is a quick way to communicate employer cost internally. A white-collar worker with ITP1 below the breakpoint typically lands at 1.45–1.50× salary. Above the breakpoint the multiple rises quickly and can reach 1.65–1.75× for high executive salaries. Add ≈ 0,2–0,5 % tillkommer (TGL, TFA, sjukpension, premiebefrielse) and any benefits like company car or wellness allowance to get the full picture of the cost of an employee in Sweden.

What does an employee cost per month and year?

With a gross salary of SEK 45,000 per month and a collective agreement with ITP1, the total employer cost is roughly SEK 67,000 per month, or about SEK 800,000 per year. The higher the salary, the larger the share of social fees and ITP1 – so it is important to calculate the full cost, not just the gross salary.

Frequently asked questions about what an employee costs in Sweden

What does an employee cost in Sweden?: The total cost depends on gross salary, employer social fees (31.42 %), optional ITP1 pension and holiday pay. Use the calculator to see the exact amount for your salary level.
What does an employee cost per month?: Monthly cost is gross salary plus employer social fees and any ITP1 and holiday pay. With a SEK 45,000 salary and ITP1, the total is roughly SEK 67,000 per month.
What does an employee cost per year?: Multiply the total monthly cost by 12. An employee with a SEK 45,000 salary and ITP1 costs the employer roughly SEK 800,000 per year.
How do växa-stöd and other hiring subsidies affect cost?: Växa-stöd lowers employer social fees to 10.21 % for a period for the first employee in a one-person company. Nystartsjobb and certain wage subsidies are credited on the tax account. The subsidies don't change ITP1 or holiday pay.
How high are Swedish employer social fees in 2026?: The standard rate is 31.42 % of gross salary. For people born 1938–1958 a special senior pension rate applies, which is lower.
Are the employer social fees negotiable?: No. They are set by law and the same for every employer regardless of industry or size. The only thing that lowers them is targeted support such as växa-stöd or new-start jobs.
How does the ITP1 ladder work?: The pension premium is 4.5 % of salary up to the breakpoint and 30 % on salary above, up to the ceiling. ITP1 applies from age 25 and is calculated on the gross salary paid in cash.
What is the Swedish special payroll tax on pension costs (SLP) and do you include it?: SLP (Särskild löneskatt på pensionskostnader) is a special payroll tax on pension costs that the employer pays to the Swedish Tax Agency on top of any occupational pension premium. It is calculated on the ITP1 premium, i.e. 24.26 % of the amount paid for occupational pension. For an ITP1 premium of SEK 2,025/month (roughly a SEK 45,000/month salary), SLP is 24.26 % × SEK 2,025 ≈ SEK 491/month (≈ SEK 5,900/year). It is included in the total when ITP1 is enabled; without ITP1 there is no SLP.
Is it true that ITP1 costs the same regardless of salary level?: No. Below the breakpoint the premium is 4.5 %. Above it the premium is 30 % on the excess – almost seven times more per krona. A raise from 52,000 to 55,000 SEK/month therefore costs much more in pension than a raise from 40,000 to 43,000.
How much do I save by raising under the breakpoint rather than above?: On an extra SEK 3,000 in monthly salary below the breakpoint you pay about SEK 135 in ITP1 premium. The same raise above the breakpoint costs SEK 900 in pension – six times more. Always model both scenarios before a salary review for senior roles.
What is the multiple?: The multiple is the total monthly cost divided by gross salary. A typical white-collar employee with ITP1 lands around 1.45–1.55× salary, depending on the salary level.
Is hiring a consultant cheaper than an employee?: Rarely for the same workload. An employee costs around 1.5× gross salary all-in. A consultant invoices SEK 800–1,500/h excl. VAT and you pay for risk, profit and admin on top of pay. Convert to an equivalent monthly fee and compare against your calculation.
Are benefits like company car and wellness allowance included?: Not automatically. Benefits are taxable and increase both the employee's tax and your social fees on the benefit value. Add the benefit value on top of the gross salary in the calculator to see the total cost including benefits.
What does a probationary employment cost versus a permanent one?: Salary cost is identical – social fees, ITP1 and holiday pay apply from day one. The difference is notice period and risk, not gross pay.
Do you include other agreement premiums?: No. TGL, TFA, sick pension and premium waiver vary between agreements. We give an estimated 0.2–0.5 % markup that you can add manually.
What is the source of the constants?: Employer social fees from the Swedish Tax Agency, IBB from the Swedish Pensions Agency / Tax Agency, ITP1 from Collectum and the holiday pay supplement from the Swedish Annual Leave Act. Values are updated annually.