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Pension in case of short-term employment

What-if question

darkos
post 4.Feb.2013, 01:56 PM
Post #1
Joined: 4.Feb.2013

Hi,

I have a Swedish work and residence permit and have been working in Sweden for a little less than a year. My employer is paying general income tax (Skatt) as well as all other benefits (health insurance, retirement fees, etc - Arbetsgivaravgifter).

My question is regarding the pension.

First, I am clearly not eligible for any kind of pension as I've been working only for 10 months here.

But on the other hand, the retirement fees that the employer pays for me are around 10% of the brutto salary (http://sv.wikipedia.org/wiki/Arbetsgivaravgifter_i_Sverige).

So what happens to that money?

If short-term employees in Sweden aren't eligible for pension, are the funds given to the Swedish pension system just "thrown" away (from employee's perspective of course; the state will surely use them for something).

Am I missing something?

Thanks,
Darko
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Yorkshireman
post 4.Feb.2013, 03:04 PM
Post #2
Joined: 22.Nov.2011

QUOTE (darkos @ 4.Feb.2013, 01:56 PM) *
So what happens to that money? If short-term employees in Sweden aren't eligible for pension, are the funds given to the Swedish pension system just "thrown" awa ... (show full quote)

When taxes are paid, that includes certain pension contributions, You are entitled to those when you retire, they are not thrown away. Mind You, you need to keep track of those, especially if you are working and paying taxes around Europe. Example is, you can contact the Swedish pension authorities and notify them of all the EU countries you have worked and earned pension rights in ...then the payments should be aggregated to a single pension you receive in Sweden.
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darkos
post 5.Feb.2013, 10:56 PM
Post #3
Joined: 4.Feb.2013

I am from a non-EU country (Macedonia) so this does not apply to me. I am also living/working in Sweden for a relatively short time (less then a year) and will be moving back home soon.

So I am not eligible for Swedish pension (neither minimum nor age-based), and I'm also not eligible for the EU pension transfer system that you mention.

My question was - and I realize it may be stupid - but given that I will never receive any kind of benefit from the Swedish pension system, why should I pay obligatory contributions to it?

Shouldn't there be a way to get a "refund"? Or even opt-out of the pension system if you know that you will be here for a short time?
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Yorkshireman
post 5.Feb.2013, 11:56 PM
Post #4
Joined: 22.Nov.2011

QUOTE (darkos @ 5.Feb.2013, 10:56 PM) *
I am from a non-EU country (Macedonia) so this does not apply to me. I am also living/working in Sweden for a relatively short time (less then a year) and will be moving back home soon.

You should check the Macedonian Government, as far as I remember there were negotiations underway with regards a Social Security Agreement with Sweden, but unfortunately I don't know if they have been signed/completed yet.
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