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Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.
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Abolished Reduction of Employer Contributions for 15 to 18 Year Olds
New Legislation Enacted
Author: Anna Jerndorf, Partner and Head of Employment – TM & Partners
As of January 1, 2024, the reduction of employer’s contributions and the general payroll contribution for individuals who are between 15 and 18 years old are abolished. The reduction had existed since 2019 to facilitate young individuals’ entry into the labor market. This means that the employer’s contribution for young people is now at 31.42%.
Updated Base Amounts for 2024
New Regulation or Official Guidance
Author: Anna Jerndorf, Partner and Head of Employment – TM & Partners
The Swedish Government has set new base amounts for 2024, as follows:
- the price base amount is SEK 57,300
- the increased price base amount is SEK 58,500
- the income base amount is SEK 76,200
Price base amounts (Sw. prisbasbelopp) are the reference for various financial limits and caps. It is used in the tax and social security systems, among others, and is often the basis for calculating benefits and allowances. It is also often used to calculate income, benefits, and contributions.
The increased price base amount is used to calculate pensionable income and pension credits. It is calculated in the same way as the price base amount, but with a higher base figure.
The income base amount (Sw. inkomstbasbelopp), which is set annually by the Swedish Pension Authority, is used to calculate the maximum pensionable income and reflect the income trend in Sweden.