Reduce working hours - Section 2

During your working life you have the possibility to reduce your working hours. Your pension is affected in different ways depending on the option that is relevant for you.

Partial leave of absence 

If you take a partial leave of absence your occupational pension is reduced. Your employer will pay in less money if you are on leave of absence. Less salary means less occupational pension. 

More about partial leave of absence

Your occupational pension could be affected if you have a partial leave of absence:

  • Your defined benefit retirement pension is not affected
  • The parts Kåpan Tjänste and the selectable part is affected. Your employer pays in money equivalent to 2 rand 2,5 per cent of your paid out salary before tax. Less salary means less occupational pension.

This is what we mean by partial leave of absence

Example 1 - You have an employment of 100 per cent and have a partial leave of absence of 20 per cent of your employment. Since you work 80 per cent you receive 20 per cent less in salary. 

Example 2 - You have an employment of 70 per cent and have a partial leave of absence of 10 per cent of your employment. Since you work 60 per cent you receive 20 per cent less in salary. 

Part time employment

If you have a part time employment your occupational pension will be lower than if you worked full time. Less salary means less occupational pension. 

More about part time employment

Your occupational pension will be affected if you have part time employment.

  • The defined benefit retirement pension is affected. It is usually lower if you work part time than full time since it is calculated on the salary per your fixed salary of your employment.
  • The parts Kåpan TJänste and the selectable part is also affected. Your employer pays in money equivalent to 2 rand 2,5 per cent of your paid out salary before tax. Less salary means less occupational pension.

This is what we mean by part time employment

Example 1 - You have an employment of 100 per cent and chose to get a new employment of 80 per cent. You work 80 per cent.

Example 2 - You have an employment of 75 per cent and chose to get a new employment of 50 per cent. You work 50 per cent.

Part time pension

From the month you turn 61 years of age you have the possibility to reduce working hours by part time pension. You can reduce your working hours by at most 50 per cent of full time employment. To reduce your working hours is an agreement with your employer. You employer will pay in to your occupational pension even if you have a part time pension being paid out. 

Reduce working hours as a parent

Many reduce their working hours during their children's early years. If you work part time according to the Parental leave law your occupational pension will keep on being paid in to. Your employer manages this with their salary system and it is not reported to SPV. 

Read more about occupational pension as a parent

Part time leave of absence as a parent

Outside of the Parental leave law you as a government19 employee be on leave of absense according to the Leave of absence regulation (tjänsteledighetsförordningen (1984:111). Read more above under Partial leave of absence. 

Working part time after 65 years 

If you keep on working after 65 years your employer will not pay into your occupational pension. If you reduce your working hours after 65 years of age this would not impact your occupational pension. 

It could however impact your national public pension. If you have questions regarding your national public pension you need to contact the Swedish Pensions Agency. 

The Swedish Pensions Agency website

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