What does an employee cost? Salary cost 2026

What is included in the cost of an employee?

The salary is the largest part, but the company pays more than that. On top of the gross salary come employer contributions and the holiday supplement, and if you have a collective agreement or offer an occupational pension, the premium is added with special payroll tax. An employee with a monthly salary of 35 000 SEK and an occupational pension under ITP 1 costs the company about 48 400 SEK a month, or 580 000 SEK a year.

Employer contributions 2026

• 31.42 per cent for most employees, everyone born in 1959 or later
• 20.81 per cent on salary up to 25 000 SEK a month for employees born 2003–2007, from 1 April 2026 to the end of September 2027. You pay the full rate on salary above that.
• 10.21 per cent for employees born 1938–1958, which is only the old-age pension contribution
• No contribution for employees born in 1937 or earlier

Read more about the reduction for young people in our article on reduced employer contributions for young people.

Holiday supplement

With a monthly salary, the employee receives their normal salary during the holiday plus a holiday supplement. Under the Swedish Annual Leave Act, the supplement is 0.43 per cent of the monthly salary for each paid day of holiday, and the employee is entitled to 25 days of holiday a year. Many collective agreements give a higher supplement. The holiday supplement is salary, so employer contributions are paid on it too.

Occupational pension

No law requires an occupational pension, but it is part of the collective agreements and many companies offer one anyway. Under ITP 1, the company pays 4.5 per cent of the salary up to 52 125 SEK a month and 30 per cent of the salary between 52 125 SEK and 208 500 SEK. On top of the premium, the company pays special payroll tax of 24.26 per cent.

Växa support for the first and second employee

If the company has had no employees since 1 January 2024, you can get växa support for the first and the second employee. You then only pay the old-age pension contribution, 10.21 per cent, on salary up to 35 000 SEK a month for no more than 24 months. The employment must last at least three months and be at least 20 hours a week. Since January 2026 the company pays the full contribution first and applies to the Swedish Tax Agency for a refund afterwards; read more in our article on växa support.

What the calculator does not include

The calculator shows salary, employer contributions, holiday supplement and occupational pension. Agreement-based insurance under collective agreements, sick pay, wellness allowances, equipment and premises may be added and vary between companies.

Let us handle the payroll

When you hire, the salary has to be calculated, tax deducted and the employer declaration filed every month. Payroll for up to three employees is included in Basic from 1 500 SEK a month, and Complete and Premium cover more employees. Read more about payroll administration or see prices and packages.