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What is employer’s contributions?

Arbetsgivaravgift (Employer’s Contribution)

The employer’s contribution is calculated based on your gross salary and added on top of it at the time of payroll. This amount is then paid by the employer — in this case, Bolagskraft — to the Swedish state in the month following the salary payment.

If you were running a sole proprietorship, this would instead be referred to as egenavgift (self-employed contributions). The employer’s contribution goes to the state to help fund general public expenses and your national pension.

You can read more about the employer’s contribution on the Swedish Tax Agency’s website.

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