Proposal - Reduction of the employers’ social security contributions for the young in Sweden is brought forward to 1 January 2021
The reduction of the employers’ social security contributions for the young in Sweden is proposed to take effect as early as January 1, 2021 instead of April, as previously announced by the Government in the Budget Bill.
The proposal means that employers’ social security contributions will be reduced to 19.73% between January 2021 and March 2023 and applies to people that in the beginning of the year are 18 but not yet 23 years old. The reduction is for salaries up to a maximum of SEK 25,000 per month. The rules are expected to enter into force in February 2021 and for compensations given after 31 December 2020, the rules will be applied retroactively.
This is still a proposal, but it will most likely be accepted within short. In that case, this will mean that the PAYE tax return may need to be corrected retroactively for January. We continuously monitor information for updates from our system suppliers.