Individual agreements

For certain conditions, there are opportunities for individual solutions through individual agreements.

Why individual agreements

For Mid Sweden University, it is important to be able to offer attractive terms of employment. Increased competition for skilled labour, partly due to generational change and increased mobility in the labour market, places demands on attractive workplaces. In addition to, for example, work tasks, work environment and development opportunities, salary and other terms of employment are of great importance in this context. It can therefore be a competitive advantage for Mid Sweden University to be able to offer appropriate terms of employment for the employee. 

What is an individual agreement?

The employee's right to collectively agreed benefits is based on the individual employment contract. The agreement binds the employer and the employee to the benefits agreed in the collective agreement. For certain conditions, there are opportunities for individual solutions through individual agreements. Common to all individual agreements (Villkorsavtal/Villkorsavtal-T, Chapter 2, Section 7) is that: 

  • The agreement must always be in writing
  • The employer must inform the relevant local trade union before the agreement is reached

On behalf of the employer, the agreement is signed by the person who has a delegation in accordance with Mid Sweden University's delegation of authority. In the decision-making and delegation of authority, it is the HR manager who has the right to sign individual agreements.  

An opportunity – not an obligation or a right

At the outset, it is important to state that individual agreements are a possibility and not a right. Provisions that regulate the conditions for individual agreements are designed so that an employer, based on an assessment in each individual case, decides whether to waive or enter into such an agreement, even if the starting point is that the employee wishes to exchange a benefit for another benefit. There may be individual reasons why a proposed design is not appropriate, either from an individual perspective or from an operational perspective.

The employer must primarily consider the requirements of the business and its financial conditions. The HR manager must therefore decide whether the various possibilities for individual agreements can be applied within his or her own operations and whether the impact on the business is reasonable. Another important aspect is whether the agreement can make a positive contribution to motivating, recruiting or retaining employees. 

The following possibilities for individual agreements are available

The following conditions can be agreed upon regardless of which employee organization the employee belongs to and if the employee is unorganized:

  • Other organisation of working hours
  • Non-regulated working hours
  • Length of notice period
  • Increased use of overtime
  • Other compensation for overtime

In addition, the employer and employees who are members of SACO-S or OFR/S,P,O as well as non-unionized employees can enter into individual agreements regarding:

  • Waive salary for salary exchange for occupational pension (see further information in the FAQ below)
  • Exchange saved vacation days for occupational pension (see further information in the FAQ below)
  • Length of vacation
  • Holiday part of the day

The Swedish Agency for Government Employers and employees who are members of SACO-S can, if possible, reach an individual agreement on:

  • Exchange holiday pay for days off

General prerequisites

You cannot enter into an individual agreement if you have an employment that is shorter than 1 year, with the exception of a permanent employment that begins with a probationary employment. If your employment ends, you take full parental leave or leave of absence or become on long-term sick leave (15 days or more) agreement will automatically apply immediately. The basic salary before salary exchange will form the basis for a salary review.

Forms for applications, including statements on individual agreements, can be found under Forms and templates.

  • According to the central collective agreements between the Swedish Labour Agency and Saco-S and OFR/S (PA 16), as an employee of a government agency, you can choose to exchange salary (salary exchange) for the employer paying the agreed amount into an occupational pension.

    What is salary exchange?

    Converting your salary into a pension means saving for an extra pension in a simple, individual and affordable way. Salary exchange for pension means that a deduction is made from the gross salary by an optional amount. There is an upper and lower limit to the amount of the amount. From 2017-01-01, the money will be invested in the elective part according to the new pension agreement PA16. The elective part is taken out without repayment cover and the employee needs to actively choose repayment cover. The offer is advantageous in the sense that the deduction lowers the gross salary, which means that the tax for the employee and the contribution for the employer are reduced.

    Salary exchange means that an employee exchanges part of their gross salary, i.e. their salary before tax, for a benefit – in this case, an occupational pension. The employee does not pay tax on the amount that is exchanged, but instead pays income tax when the money is paid out as a pension.

    Who can make a salary exchange?

    The possibility of salary exchange applies to employees who are members of Saco-S and OFR/S, as well as non-unionized employees, and applies up to and including the calendar month before the month in which the employee reaches the retirement age of 65.

    How does conversion of earnings work?

    If you choose to make a salary exchange, an individual agreement is signed between Mid Sweden University and the employee. The agreement is valid until further notice with a mutual notice period of three months. The salary exchange takes effect the month after the agreement is signed. The insurance premium is always paid in advance, which is why the salary exchange amount is deducted from month one, and the first premium is paid from month two. Mid Sweden University then pays the agreed amount on a monthly basis. The amount to your elective portion and the insurer you have chosen for it. 

    If you start a new employment at Mid Sweden University, the agreement on salary exchange is included unless otherwise agreed. The minimum amount for voluntary provision per month is SEK 500. Market practice is that the total provision for occupational pensions may not exceed 35% of the gross salary.

    As the employer has an obligation to inform the relevant employee organisation about the salary exchange in accordance with PA16, the employee needs to state in the request for salary exchange which union the employee is a member of. This must be done in the form "Agreement – Salary exchange" with a note about either "Saco", "OFR" or "Unorganised".

    Cancelling a conversion of earnings

    Salary exchange is only made if there are conditions for being able to make a full salary deduction. Reasons why a full salary deduction cannot be made may be, for example, parental leave, leave of absence, sick leave or if there are any claims with the Enforcement Authority. Interruptions in ongoing agreements may otherwise be granted upon written application. The application must specify the time period and the reason. The notice period, if you wish to take a break, is three months. The application is submitted to the Human Resources Division.

    Termination of the agreement on conversion of earnings

    The agreement may be terminated:

    • at the employee's request during ongoing employment
    • if the employment at Mid Sweden University is terminated
    • if the employee takes full parental or leave of absence or is on long-term sick leave
    • at the employer's request if the tax rules, other legislation or other circumstances change.

    Change the amount of the salary exchange

    If the employee wishes to change the amount to be exchanged, a new agreement must be signed.

    Where is the money invested?

    The money is invested in the same insurance policy with the insurer you have chosen for your elective part. If you have not made a choice of insurer, the money is placed in Kåpan Valbar at Kåpan Pensioner.

    Examples of how it works in practice

    An employee who earns SEK 55,000 chooses to exchange SEK 2,000 from September in August. Deductions from the salary are made from the month of September's salary. In October, Mid Sweden University pays SEK 2,000 to your elective part. If you have not made a choice, the money is placed in Kåpan Valbar at Kåpan Pensioner.

    The employee is taxed on the reduced gross salary of SEK 53,000 (SEK 55,000–SEK 2,000), which also gives the employee a lower income tax.

    Things to keep in mind as an employee

    Salary exchange can be financially advantageous for employees who have a monthly salary of at least SEK 51,200 (8.07 ibb 2024) after the deduction for salary exchange. A person whose gross salary after conversion of earnings is less than the above amount loses, among other things, an old-age pension in the national pension system. Parental insurance, sickness benefit and unemployment insurance can also be affected depending on the size of the salary after salary exchange. In other words, conversion of earnings can affect other benefits so that they are lower. Therefore, employees are advised not to make a salary exchange if the gross salary after the salary exchange is less than SEK 51,200 (2024).

    Advice and further information 

    Mid Sweden University does not provide advice on issues relating to salary exchange. For more information, please contact the National Government Employee Pensions Board and your pension, bank or other advisor.

    Forms for conversion of earnings can be found under forms and templates.

  • An employee who has a monthly salary may, through an individual agreement with the employer, waive vacation days for contributions to an occupational pension. This is done as a one-time deposit by the employer.
    The value of a vacation day from 1997 or later is 5.09% of the fixed salary for those who are members of a trade union that is affiliated to Saco-S and thus covered by Villkorsavtal-T. 
    For an employee who is a member of OFR/S, the value of a vacation day from 1997-2023 is 5.04% of the fixed salary, As of 2024, the value of a vacation day is 5.09%.

    Example 1 - calculation with 5.09%

    An employee has a monthly salary of SEK 30,000 and wants to set aside 10 saved vacation days for payment in Kåpan Valbar.
    30 000 SEK/month x 5.09% = 1527 SEK x 10 vacation days = 15 270 SEK

    Example 2 - calculation with 5.04%

    An employee has a monthly salary of SEK 30,000 and wants to set aside 10 saved vacation days for payment in Kåpan Valbar.
    30 000 SEK/month x 5.04% = 1512 SEK x 10 vacation days = 15 120 SEK 

    At least 20 days of the year's holiday must be used for rest and recreation.

    The application is sent to the HR department, Sundsvall, for signature by the HR manager.

    Forms for agreement to exchange saved vacation days for pension provisions can be found under forms and templates.

  • Villkorsavtal –T provides the opportunity to exchange a full year's holiday bonus for three days off by individual agreement. Such an agreement is valid for one year and must be signed no later than 1 December of the year preceding the holiday year to which the exchange relates. In order to apply for the 2025 holiday year, the individual agreement must be signed before 1 December 2024.

    The three days off must be taken as leave during the holiday year to which the exchange relates and cannot be carried over to future years. Please note that the days can only be taken after all the current year's vacation days have been taken.

    In order for an individual exchange agreement to be signed, it is required that:

    • the employer assesses that it is possible for operational reasons to schedule such leave during the leave year to which the exchange relates
    • the employee has no more than five days of annual leave accumulated at the beginning of the leave year to which the exchange relates
    • the employee does not have any planned longer absences during the holiday year
    • the employment extends over the entire holiday year to which the exchange relates

    If you are interested in exchanging holiday pay for three days off, you need to contact your manager. With the support of HR, it is ensured that all conditions according to the Villkorsavtal-T are met in order to reach an individual agreement.

    Forms for applications, including statements on individual agreements, can be found under Forms and templates.

The page was updated 5/3/2024