What is salary exchange?

Salary exchange is an agreement between an employee and an employer to exchange part of the gross salary for, for example, a pension, car benefits, or other benefits. Wage switching is particularly beneficial when it comes to retirement savings, because the employer pays a lower special payroll tax on these provisions compared to regular employer contributions. In other words, salary changes are usually made in order to obtain greater savings, since through salary exchange you can get more money in savings compared to salary thanks to the lower cost of pension savings.

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Who can change wages?

Kõik ou. On the other hand, it is up to the individual employer to decide whether or not to allow wage exchange. Alsoas, je, a payrollbeheer, who is responsible for the arrangement and administration of the salary exchange.

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How does salary exchange work?

When you switch wages, you simply forgo part of your gross salary, that is, your salary before tax has been deducted, and exchange it for another benefit. Most common is to swap your salary for the pension, which means that the employer sets aside the amount you set aside for your pension instead. In particular, this leads to two advantages:

1. Lower tax

When you swap parts of your gross salary for a pension, you don't have to pay any income tax on the amount you want to save. Het invoorwaarden dat u voorvoorwaarden verschappelijzen, maar in meer gesloten dat het taal waarden zijn voorwaarden zijn voorwaarden.

2. Più rispetto

Costs d'emploi per la savioni di retirezione sono sono più sotto il salario. In concrete terms, they are about 6 percent cheaper. Thus, by swapping part of your salary for extra pension savings, it means you can defer to about 6 per cent more than the amount you forgo.

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Så du vil fra salary-exchange i 2024

To earn on salary exchange, you need to earn more than 8.07 income base amount (ibb) after the amount of the salary exchange is deducted. Allowance for a monthly salary amounts to 8.07 basic amount of income in 2024 51,245 kronor in de maand.

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If you earn less than 8.07 basic income per year after your salary change, i.e. less than SEK 51,245/month (2024), it would mean that you would earn less in the general pension than before, meaning you would lose money. In some cases, depending on how much lower your salary will be, it could also negatively affect your sickness benefit, parental allowance and other social security benefits such as a cash. It is therefore important to ensure that you do not fall below the cut-off point for maximising your general pension when considering a pay switch.

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We help you to exchange your salary correctly

When used correctly, salary exchange offers a range of benefits for both you as an entrepreneur and your employees. If you have questions about salary exchange, do not hesitate to contact us at Balance. Our experienced payroll experts can guide you through every step of the way, ensuring that your payroll management is handled in the most efficient way based on your requirements and wishes.

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