Salary exchange

Salary exchange can be a beneficial way to save for your occupational pension. The fact that it’s an occupational pension matters in several ways, including taxation and the ability to invest and transfer the money.

It is always your employer who decides whether salary exchange is possible. Your employer also makes the additional payments into your occupational pension.

If your employer offers salary exchange

Here’s what you need to be aware of:

• If your monthly salary falls below SEK 54,200 after salary exchange, it’s not advisable to proceed, as you may lose entitlement to national public pension contributions. For those with lower salaries, alternatives such as investment savings accounts or capital insurance offered by banks and insurance companies may be more suitable.
• It’s important that all salary exchange arrangements are documented in an agreement between you and your employer.
• Salary exchange contributions can be paid into your existing ITP 1 or ITPK occupational pension, but this is decided by your employer. Make sure to check what options are available, what you can choose from, and what the fees are.
• Salary exchange may affect other benefits such as unemployment insurance, sick pay, ITP disability pension, and any income insurance, as these are calculated based on your salary after the exchange.
• The tax on the money your employer contributes to your occupational pension is lower than the social security contributions they pay on your salary. Your employer may choose to contribute this difference to your pension at no additional cost to them.
• Keep in mind that with salary exchange into an occupational pension, you won’t have the same easy access to the money as with personal savings.
• If you have ITP 1, your employer must report your salary after salary exchange to Collectum. If your employer does not compensate you by making additional contributions to your ITP 1, salary exchange is not recommended.
• If you have ITP 2, your employer can continue to report your pre-exchange salary to Collectum. In that case, you won’t lose any contributions to your occupational pension or any potential family pension.