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Sickness benefit and pension for the self-employed in Sweden

Both sickness benefit and state pension are calculated on the surplus of the business, not on turnover. A low reported surplus therefore gives low qualifying income and low pension rights, even where the business turns over a great deal.

What the rules say

  • The Social Insurance Code: qualifying income for a self-employed person is based on income from other gainful employment.
  • The Social Insurance Code: during the start-up period the income may instead be compared with an employee's salary for the same work.
  • The Social Insurance Agency: the waiting period is seven days as a rule and can be changed.

The requirements line by line

The requirements line by line
QuestionRequirementSource
Social insuranceThe sickness benefit qualifying income of a self-employed person is based on the income the business can be expected to give, that is the net income after deductions.SFS 2010:110, socialförsäkringsbalken
Start-up periodDuring the start-up period the qualifying income may instead be set at what an employee doing the same work would have earned.SFS 2010:110, socialförsäkringsbalken
Waiting periodA self-employed person has a standard waiting period of seven days and may choose a longer or shorter one, which changes the contributions.Försäkringskassan, för dig som är företagare
State pensionPension rights build on pensionable income, which for a self-employed person is the surplus of the business after contributions.SFS 2010:110, socialförsäkringsbalken
TaxSelf-employed contributions are paid on the business surplus and fund sickness insurance, parental insurance and old-age pension.SFS 2000:980, socialavgiftslagen

Thresholds and limits

Thresholds and limits
LimitWhat it triggersSource
Seven days as the standard waiting periodCan be changed, which alters the contributionFörsäkringskassan, för dig som är företagare

What it means for the company

Withdrawals govern the cover. A company paying a low salary builds as little pension and sickness benefit as a sole trader with a low surplus.

What it means for the individual

Check your registered qualifying income before you need it; it is derived from the results reported in recent years.

Source lines

Next step

Compare surplus, salary taken and the chosen waiting period against the cover you actually want for sickness and parental leave.

All questions for small businesses

This page reports what the sources say, with the identifier and address of the publisher. It is not legal advice and does not decide an individual matter.

Next step

Three ways to put the register to work in your own practice.

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