Background & Purpose

Many young people struggle to enter the job market, and businesses often find it expensive to hire those with little experience. This measure aims to make it cheaper for companies to hire and keep young staff.

The Decision

The Swedish parliament decided to lower the payroll tax for employees who were 18–22 years old at the start of the year, meaning companies will pay less tax on salaries up to 25,000 SEK per month.

Does this affect you?

  • Small business owners: They can reduce their monthly personnel costs when hiring or retaining staff in the 19–23 age bracket.
  • Young job seekers: They become more attractive to potential employers because the cost of hiring them is lower for the company.

In Practice

  • Employers pay only the pension fee and half of the other standard payroll taxes for eligible young employees.
  • The tax break applies to monthly salaries up to 25,000 SEK.
  • The lower tax rate starts on April 1, 2026.
  • The temporary tax reduction ends on September 30, 2027.