As 2018 draws to a close, our analysts commence collating the 2019 employer-critical benefit updates. New year thresholds, coefficients, and contribution rates – plus holiday dates to plan around – are incorporated into Axco’s Employee Benefits Report and Insight EB offerings.
Most countries’ benefit year follows the calendar year. This can entail a frustrating process of numerous, piecemeal HR system changes to account for the unlinked, updated values. More agreeable is the simple method applied in a handful of countries, whereby very few coefficients are embedded in most benefit formulae. The eligibility, contributions, or benefit values of almost every major Swedish employee benefit is based on just two coefficients.
The income base amount (inkomstbasbelopp, SEK 62,500 per year in 2018, SEK 64,400 in 2019) and the price base amount (prisbasbelopp, SEK 45,500 per year in 2018, SEK 46,500 in 2019) impact a wide range of benefits and sometimes with multiple applications to a single benefit.
A third coefficient, the increased price base amount (förhöjda prisbasbelopp, SEK 46,500 per year in 2018, SEK 47,400 in 2019), is also updated for the coming year, however, its application is limited to only the retirement supplementary pension and survivor pensions under ITPK policies effected pre April 2008.
Gott nytt år (Happy New Year)!