In this year’s budget proposal, the government proposes reducing the employer’s social security contributions from 31.42% to 19.73% for young employees. This will apply to individuals aged 19 to 23 during April 1, 2021-March 31, 2023.

The youth discount applies to compensations up to SEK 25,000 per month. For compensation exceeding this amount, full employer’s contributions must be paid on the excess portion.

The youth discount is being introduced as a measure to reduce youth unemployment.

Source: www.regeringen.se