Self-employment contributions (egenavgifter)

Self-employment contributions (egenavgifter) are the social security contributions that a sole trader (enskild näringsidkare) or a partner in a trading partnership (handelsbolag) pays themselves, as the equivalent of employer's contributions for employees. They are calculated on the business's profit and fund, among other things, pension, sickness benefit and parental benefit.

The size of the contribution depends on age and on the waiting period for sickness benefit that the business owner has chosen. There is also a general reduction that lowers the contributions for most people. Self-employment contributions are deductible in the business and are paid through preliminary tax.

For anyone running a sole trader business (enskild firma), self-employment contributions are one of the largest items to allow for when setting prices and taking out a salary. They are also one of the reasons why many people choose a limited company (aktiebolag, AB) as the business grows.