Salary exchange
Below you can read more about the possibility of salary exchange, i.e. setting aside part of your salary for your pension.
Salary exchange means that a deduction is made from gross salary by an amount of your choice. There is an upper and a lower limit to the amount. The money is invested in your elective part with the insurer you have chosen. If you have not made a choice, the money is invested in Kåpan Valbar with Kåpan Pensioner.
What is salary exchange?
Salary exchange for pension means saving for an extra pension in a simple, individualised and affordable way. Salary exchange for pension means that an amount of your choice is deducted from your gross salary. There is an upper and a lower limit for the amount.
The money is invested in the optional part under the PA 16 pension agreement. The optional part is taken out without repayment cover and the employee must actively choose repayment cover.
The offer is favourable in that the deduction reduces the gross salary, which means that the tax for the employee and the contribution for the employer are reduced.
Who can exchange salary for pension?
The offer is open to all employees working 20 % or more.
Employees born in 1987 or earlier (PA 16, section II) have the opportunity to exchange salary from the age of 23 up to and including the calendar month before the month in which the employee reaches retirement age. For those covered by OFR/S, P, O or Seko, the retirement age is 67 and for those covered by Saco-S or who are unorganised, the retirement age is 69.
Employees born in 1988 or later (PA 16, section I) have the possibility to exchange salaries from the first day of employment up to and including the calendar month before the month in which the employee reaches the retirement age of 69.
Allowances that may be affected
The salary exchange may have the effect of reducing other allowances. Therefore, employees who, after the salary exchange, have a basic (gross) salary below the thresholds below are discouraged.
General pension
The limit for the accrual of the general pension is SEK 51,245 per month (in 2024).
Parental allowance
Sickness benefit qualifying income for payment of parental benefit is affected if the salary is less than SEK 47,750 per month (in 2024). Please also note that the parental pay paid by Stockholm University for 360 days when the child is under three years old may be affected. This means that if you normally have a gross salary that is higher than the base amount ceiling, you will receive 90 % of the daily salary for the parts of the salary that exceed the base amount ceiling. If, on the other hand, your gross salary is below the base amount ceiling due to the salary exchange, you will receive 10 % of the current calendar day's salary.
Sickness benefit and sickness allowance
The compensation for sickness benefit and sickness compensation will be lower for those who, after voluntary pension provision through salary exchange, receive a salary of less than SEK 47,750 per month (in 2024).
Unemployment insurance fund
The benefit for unemployment insurance will be lower for those who, after voluntary pension contributions through salary exchange, receive a salary of less than SEK 26,400 per month (in 2024).
How does salary exchange work?
If a salary exchange is chosen, an agreement is signed between Stockholm University and the employee.
The agreement is valid until further notice with a mutual notice period of three months.
The salary exchange takes effect the month after the agreement has been signed between employer and employee.
The insurance premium is always paid in advance, therefore the salary exchange amount is deducted from month one, and the first premium is paid from month two. Stockholm University then pays the agreed amount on a monthly basis. The amount is paid to your elective part and the insurer you have chosen for it. If you have not made a choice, the money is invested in Kåpan Valbar with Kåpan Pensioner.
If you start a new job at Stockholm University, the salary exchange agreement is included unless otherwise agreed.
The minimum amount for voluntary contributions per month is SEK 500. Stockholm University follows the practice in the labour market that the total provision for occupational pension may not exceed 35 % of gross salary. This means that the sum for salary exchange per month may not exceed 15 % of your gross salary.
Calculation: 0.15 * gross salary = maximum sum to be exchanged
What do I do if I want to exchange salaries?
What do I do if I want to exchange salaries?
If you choose to exchange salaries, an agreement is signed between Stockholm University and the employee. The agreement is valid until further notice with a mutual notice period of three months.
The salary exchange takes effect the month after the agreement is signed.
The completed agreement is sent to the salary administrator at the Human Resources Office.
Cancelling a salary exchange
Salary exchange is only done if there are conditions for full salary deduction. Reasons for not being able to make full salary deductions may include parental leave, leave of absence or sick leave. In these cases, the salary exchange automatically ends.
When you want to end your salary exchange, you submit your request to the Human Resources Office. The notice period for cancelling salary exchange is three months.
Cancelling salary exchange
Pdf, 2.2 MB.
If you wish to restart your salary exchange after, for example, parental leave, you must submit a new application for salary exchange, as per procedure.
The agreement on salary exchange expires
The agreement may be terminated:
- at the request of the employee during employment
- if the employment at Stockholm University ends
- at the employer's request if the tax rules, other legislation or other circumstances change.
Changing the amount of the salary exchange
If the employee wishes to change the amount to be exchanged, a new agreement must be signed.
Example of how it works in practice
An employee earning SEK 55,000 chooses in August to exchange SEK 2,000 from 1 October. Deductions from salary are made from October's salary. In November, Stockholm University pays in SEK 2,000 to your elective part.
The employee is taxed on the reduced gross salary of SEK 53,000 (SEK 55,000 minus SEK 2,000), which also gives the employee a lower income tax rate.
Contact
In the first place, please contact your department.