Working in Sweden Through an EOR

If you’ve been offered a role in Sweden through an Employer of Record (EOR), you might be wondering how your employment benefits work - especially when it comes to pensions.

One key benefit you’ll receive is an occupational pension known as ITP1. It’s an important part of your total compensation and a long-term asset that stays with you, no matter where your career takes you next.

In this article, we look at the finer details of the ITP1 pension, or you can skip to the summary for the main headlines.

Here’s What You Should Know About Your ITP1 Pension

What Is ITP1?

ITP1 is a Swedish occupational pension plan for private-sector white-collar employees (typically born in 1979 or later). It’s not deducted from your salary - your employer pays for it in addition to your gross pay.

Here’s how it works:

• Your employer contributes 4.5% of your monthly salary up to a certain level (around SEK 48,300/month in 2025).

• For any salary above that, contributions increase to 30% - a significant boost to your retirement savings.

This money goes into a personal pension account in your name and is invested over time.

What If I’m Hired via an Employer of Record?

If you’re working in Sweden through an EOR, the EOR acts as your legal employer on paper - handling payroll, taxes, benefits and local compliance. But from your perspective, your pension rights are fully protected.

A good EOR partner will:

• Register you for ITP1 through Collectum (Sweden’s central pension administrator),

• Pay contributions on time into your pension account,

• Provide access to online tools where you can track and manage your pension funds.

Nothing is “lost in translation” - you get the same pension entitlements as any locally employed Swedish colleague.

Who Controls the Pension? You do

This is not a company-owned scheme or a pooled fund. Your ITP1 pension is:

• 100% in your name,

• Portable – it stays with you if you change jobs or leave Sweden,

• Invested according to your choices (or a low-cost default fund if you don’t choose).

You’ll be able to log into platforms like Collectum.se or your pension provider to view your balance, change funds or update your information.

What Happens If I Leave Sweden?

If your time in Sweden is temporary - no problem. Your pension doesn’t disappear. It continues to grow with investment returns even if you’re no longer living or working in the country.

In most cases, you can begin withdrawing your ITP1 pension from age 55 onward, depending on your personal situation and the fund's specific rules. In some cases (e.g. permanent relocation outside the EU), early access may be possible, though this depends on tax laws and the provider’s terms.

If you return to your home country, you’ll still be able to access and manage your pension online from abroad.

Why It Matters

Occupational pensions in Sweden are generous by international standards - and ITP1 is a major financial benefit you’re receiving as part of your employment package. Whether you're staying in Sweden long-term or just for a few years, you're building a personal retirement fund that belongs to you.

It’s a smart, future-focused benefit that adds real value to your time working in Sweden.

Summary

Your ITP1 Pension – Quick Guide for EOR Employees in Sweden 

What is ITP1?

• A mandatory, employer-paid occupational pension for private-sector employees in Sweden (born 1979 or later).

• You do not pay into it—your employer funds it entirely.

How Much Is Contributed?

Salary Portion	Employer Contribution
Up to ~SEK 48,300/month	4.5% of gross salary
Above ~SEK 48,300/month	30% of that portion

What You Get

• A personal pension account (via Collectum and a selected pension provider).

• Investment choices: select funds or use the default.

• Online access to track and manage your pension.

If You Leave Sweden

• Your pension stays with you.

• It continues to grow with investment returns.

• Early access may be possible (usually from age 55).

Key Takeaways

• You own the pension.

• It’s portable and secure.

• It’s a major benefit of working in Sweden through an EOR.

Need help accessing your pension account? Contact your EOR or look up www.collectum.se