How is Social Security structured in Sweden?

Sweden's social security system provides comprehensive coverage for employees, encompassing various aspects such as health insurance, retirement pensions, and labor market insurance. Here's an overview of the key components for 2024:

Employer Contributions:

General Rate: Employers contribute 31.42% of an employee's gross salary toward social security. This contribution covers various components of social insurance.
Reduced Rate for Younger Employees: For employees under the age of 25, the employer contribution is reduced to 15.49% of the gross salary.

Breakdown of Contributions:

General Payroll Tax (“General Wage Tax”): 11.62% of gross income.
Health Insurance: 3.55% of total income. This rate helps fund the healthcare system, ensuring access to medical services.
Labor Market Insurance: 2.64% of total income. This covers unemployment benefits and related services.
Parental Insurance: 2.6% of total income. This provides support for parental leave and related benefits.
Retirement Pension:
- For employees aged 25 to 65: 10.21% of total income.
- For employees under 25: No contributions are required.
- For employees over 65: Contributions are generally not required, as pension benefits are provided.
Survivor's Pension: 0.6% of total income. This provides financial support based on the deceased person's pension base, ensuring security for surviving dependents.
Workers Compensation: 0.2% of total income. This covers compensation for work-related injuries and illnesses.

Sweden’s social security system is designed to offer extensive coverage and support, ensuring financial security and access to essential services for its residents. For the most accurate and personalized information, consulting with a local tax or payroll expert is recommended.

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Sweden

How is Social Security structured in Sweden?