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Sweden Social Security Agreements

Employers pay social security contributions to Swedish employers for the remuneration of workers covered by the Swedish social security system. Social security contributions are collected at 31.42% of total taxable (uncapped) cash and in kind, paid by a Swedish employer or a foreign employer holding an MOU in Sweden. Foreign employers who do not have a set-up in Sweden must register for the payment of social security contributions or can enter into an agreement with the worker for the worker to pay the contributions and declare them monthly. Rates vary depending on the solution used. A pension tax of 7% of gross acquisition income, up to SEK 538,700 (i.e. a maximum fee of SEK 37,000), is due by the employee, but the levy is generally fully re-educational on the worker`s tax return (i.e. the actual cost to the worker is normally zero). Third-country nationals (i.e. those who reside in a Member State but are not nationals of an EU or EEA or Switzerland) are subject to EU social security affiliation rules. The rules for third-country nationals apply in all EU countries except Denmark and the United Kingdom. The three EEA countries, Iceland, Norway and Liechtenstein, as well as Switzerland, are not covered by the rules applicable to third-country nationals.

This means that the conventions only apply to people who are not covered by EU social security affiliation rules. In addition to Sweden, the following countries are members of the EU: Belgium, Bulgaria, Cyprus, Denmark, Estonia, Finland, France, Greece, Ireland, Italy, Croatia, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, the United Kingdom, the Czech Republic, Germany, Hungary and Austria. The other EEA countries are Norway, Iceland and Liechtenstein. At the end of the maximum period of secondment, seconded personnel are no longer covered by the social security of the country of origin. At the end of the booking period, Sweden will no longer pay a fee. Some conventions are structured so that seconded staff remain in the social security system of the country of origin for a period specified in each agreement and then transferred to the social security system of the country of work. These conventions are generally referred to as unintended agreements. Other agreements are designed so that seconded personnel are covered by country of work legislation from the first day of the detachment, when, at the time of secondment, the detachment is expected to remain above the maximum duration of detachment specified in the agreement.

These conventions are generally referred to as conventions of intent, i.e., at the time of posting, they are the intent that governs applicable legislation. Family members accompanying the worker to one of the countries also remain covered by the social security system of the country of origin during the same period, unless the family members also do work. The agreement was signed by both countries on April 11, 2019 and aims to coordinate pension benefits such as general pension, survivor`s pension and disability benefits. Since the agreement coordinates Japanese and Swedish rules, it will ensure that a person retains his or her social security and pension rights when travelling between countries. The employer is only required to pay social security fees in one of the countries. Sweden and Japan have agreed on a social security agreement to coordinate the social security of people who work or live in both Sweden and Japan.