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
Register and change F-tax, VAT, employer and SNI
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 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 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 return ("Lämna arbetsgivardeklaration") at skatteverket.se.
Filing a PAYE return (Swedish Tax Agency)
Provide details about absence when you file your PAYE return
From the January 2025 reporting period, as an employer you must provide details about employees' periods of absence from work. This applies if the compensation that you report in your PAYE return has been affected by absences that might qualify them for parental benefit or temporary parental benefit. You provide details about each individual employee's absence when you file your PAYE return to the Swedish Tax Agency.
Details about absence information is not a part of the PAYE return. The Swedish Tax Agency is not responsible for the information itself, but receives it and passes on the information directly to the Swedish Social Insurance Agency. The Swedish Tax Agency does not save any details about absence. The Swedish Social Insurance Agency uses this information in checks and controls relating to parental benefits.
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