Do we need to pay FORA when posting workers to Sweden?

For businesses looking to post workers to Sweden, understanding your obligations regarding FORA contributions is crucial. Many companies wonder whether they need to register and pay insurance contributions to FORA when sending employees to Sweden. Here’s what you need to know.

What is FORA?

FORA is a private company jointly owned by the Confederation of Swedish Enterprise (Svenskt Näringsliv) and the Swedish Trade Union Federation (LO). It provides occupational pensions and insurance services for employees in Sweden, particularly in industries covered by collective agreements.

Who is responsible for paying FORA?

There is no legal requirement for a foreign employer to register with FORA when posting workers to Sweden. However, many collective agreements—especially in the construction sector—require employers to register and contribute to FORA’s insurance and pension schemes.

Do you need to pay FORA when Posting Workers to Sweden?

If your company is bound by a collective agreement that includes provisions regarding FORA, then you are typically required to register and make contributions. However, under FORA’s terms and conditions, businesses that only operate temporarily in Sweden may qualify for an exemption.

How can your business be exempted from FORA contributions?

FORA regulations state that businesses operating in Sweden for less than 12 months are generally not obligated to pay insurance or pension contributions. Additionally, if your employees already receive a comparable occupational pension in their home country, you may also be exempt from paying FORA’s complementary pension contributions.

It is important to note that this exemption is not automatic—businesses must apply for it. FORA will not grant an exemption on its own initiative.

Need help navigating FORA contributions?

If your company is posting workers to Sweden and you want to determine whether you qualify for a FORA exemption, we can help. Contact us today to assess your eligibility and assist with the application process.

Ensuring compliance with local regulations while optimizing costs is key to successfully managing international workforce mobility. Let us guide you through the process and ensure your business operates smoothly in Sweden.