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Variable salary ITP 2

Variable salary is classified as pensionable salary for ITP 2 in the following cases:

  • commission, earnings-related compensation, production bonuses or similar
  • bonuses, performance-based at individual, group or company level with earning conditions determined in advance.

Amounts not to be classified as pensionable salary,

  • gratuity - an amount determined unilaterally and in arrears by the employer.

Employees with fixed and variable salary

If the employee receives both fixed and variable salary, the pensionable portion consists of

  • the current fixed annual salary (including holiday supplement) and
  • the average variable salary during the three immediately preceding years.

Do not forget to add the holiday supplement!

The holiday supplement for variable portions of salary is always to be included in the reported annual salary. When it is time for your annual salary review process, you are also to add variable salary - in the form of the three-year average. New variable salary is calculated on an annual basis, regardless of whether or not the employee's fixed salary has changed.

Employees with exclusively variable salary

If the employee receives exclusively variable salary, the pensionable portion consists of the average salary paid during the three immediately preceding years.The salary may not be an amount less than the state's guaranteed minimum income

If the employee receives guaranteed commission or a similar income guarantee, the pensionable salary may not be an amount less than the state's guaranteed minimum income.

Recommendation when the employee has not had a variable salary for a full three years

If you cannot do an average calculation, for example because the employee has not been working with you for three years, the Confederation of Swedish Enterprise and the Council for Negotiation and Co-operation for Salaried Employees (PTK) recommend the following:

  • Year 1: Estimate and report the variable salary component (including holiday allowance).
  • Year 2: Report the actual payment of variable salary components + holiday allowance (earned in year 1).
  • Year 3: Report the average of the actual payments of variable salary components in year 2 + 3 (earned in year 1 + 2).
  • Year 4: Report the average of the actual payments of variable salary components in year 2 + 3 + 4 (earned in year 1 + 2 + 3).

From year 5 onwards, report an average of the previous three years' actual payments of variable salary components.Example calculation variable salary components

Skriv tabellbeskrivning här



In year 1, the employer estimates the variable components
Annual salary (agreed monthly salary x 12.2):
Bonus (estimated)
Holiday allowance
(0.5% x 25 vacation days = 12.5%)

Report to Collectum, year 1


SEK 366,000 (30,000 x 12.2)
SEK 20,000
SEK 2,500 (20,000 x 0.125)


SEK 388,500

Year 2 the actual payment is used for year 2
Annual salary
Bonus (including holiday allowance)

Report to Collectum, year 2

SEK 366,000
SEK 16,875 (15,000 + 1,875)


SEK 382,875

Year 3, actual payments are used for year 2 +3
Annual salary
Bonus (including holiday allowance)
Average bonus

Report to Collectum, year 3


SEK 366,000
SEK 23,625 (21,000 + 2,625)
SEK 20,250 (16,875 + 23,625 / 2)
SEK 386,250

Year 4, actual payments used for year 2+3+4
Annual salary
Bonus (including holiday allowance)
Average bonus

Report to Collectum, year 4

SEK 366,000
SEK 0
SEK 13,500
(16,875 + 23,625 + 0 / 3)


SEK 379,500

From year 5 you calculate bonus in the same way as for year 4 in the example above, i.e. the average of the previous three years' payments. According to the ITP agreement, from this point, the employer is obliged to report the bonus as a three-year average.

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