Rules when paying wages
You must inform employees about their salary and how often it is paid. In principle, you and your employee can agree on any salary. However, if you are bound by a collective or affiliated agreement, you may need to abide by specific provisions.
How to pay salary
Before the first salary payment
- Register as an employer with the Tax Agency
- Find out how much tax to deduct
Tax deductions when paying salary
For each salary payment
- Calculate salary and deduct tax
- Don't forget the value of any benefits
- Create a payslip for the employee and send it out every month.
- Calculate employer contributions on wages and benefits
- Pay the salary to the employee on the agreed date.
- Submit a PAYE tax return and pay taxes and employer contributions to the Swedish Tax Agency
Tax deductions when paying salary
Payslips
When you make a salary payment, you must attach a payslip.
The payslip must include information on:
- personal data
- payment date of salary
- how salary has been paid
- pre-tax salary amount (gross salary)
- amount in tax deducted (in per cent and SEK)
- salary paid (net salary).
The payslip can also include information on:
- holidays
- number of holiday days taken
- remaining holiday
- paid holiday pay
- the value of benefits, e.g., free food
- other payments, such as travel allowances.
Different salary forms
The most common form of salary is a monthly salary, but hourly pay is also used, as well as variable salary . Piecework is a variable salary according to which employees are paid per unit produced, work component or similar. Bonus or commission pay is a variable salary related to the performance or turnover of the business.
Some employers pay salary in the month after it is earned, others at the end of the month in which it is earned. For example, January's salary may be paid at the end of February, or at the end of January.
Conversion of earnings
When an employee converts some of their salary into a benefit, it is called conversion of earnings.
Holiday pay
Holiday pay is the remuneration that employees receive during their holidays. The holiday pay must be paid at the same time as the holiday leave.
Calculate vacation pay and vacation allowance
Sick pay
Sick pay is the remuneration employees receive when they are absent from work due to illness.
PAYE tax return
You must report payments and tax deductions for each employee every month. The easiest way to do this is in the e-service Submit PAYE tax return at skatteverket.se. As of January 1, 2024, you must provide information on how much the payee received in cash compensation or benefit that refers to board fees. On the individual data, you fill in the amount for the board fee in box 023 - Of which compensation is board fee. The board fee must also be included in the amount you report as cash compensation or benefits.
Filing a PAYE tax return (Swedish Tax Agency)
Collective and affiliated agreements
If you are bound by a collective or affiliated agreement, you may need to abide by specific provisions. For example, there may be rules on minimum wages or other remuneration that apply to your business