Senior employees - employment after 65
We will help you to figure out what applies when an employee continues working after reaching the age of 65.
Checklista
How to manage insurance for employees over the age of 65
The insurance cover can be amended if an employee continues working after reaching the age of 65. Use these simple checklists to keep track of the various aspects.
Blue collar workers
How to manage insurance for blue collar workers over the age of 65
You no longer need to pay into the employee’s occupational pension from the month in which they turn 65. The company and the employee may come to a voluntary agreement that the company will continue to pay. If you come to an agreement, you have to continue reporting the employee’s salaries to Fora. The employer’s contributions you pay to Skatteverket, the Swedish Tax Agency, are lower for employees born in or before 1958. Within certain collective agreement areas, a premium also has to be paid in for part-time pension after the employee has turned 65. In Fora’s price list, supplementary pension premiums, you can see what applies to various collective agreements. Three insurances continue to apply after the employee has turned 65: Trygghetsförsäkring vid arbetsskada (TFA), a work injury insurance, always applies when a person is working. Tjänstegrupplivförsäkringen (TGL), a group life insurance, applies for as long as the employee is working, and is not away from work for more than 90 consecutive days. Avtalsgruppsjukförsäkring (AGS), a group sickness insurance, applies up until the month in which the employee turns 66.
If the blue collar worker becomes ill after the age of 65
The general health insurance applies to everyone - but there are some limitations when the employee turns 66 years old. For example, the employee cannot receive sickness benefits from Försäkringskasssan, the Social Insurance Agency.
Days 1-14, make a qualifying deduction equal to 20% of the average sick pay per week. The suspension deduction can be calculated in different ways depending on which collective agreement your company is covered by.
Then pay sick pay which is 80% of the salary and any other employment benefits. Remember to note the day the employee fell ill.
Day 8, you need to receive a doctor’s certificate from the employee.
Day 15, you have to report the employee as sick to Försäkringskassan, The Social Insurance Agency so that they can pay out sickness benefit.
White collar workers
How to manage insurance for white collar workers over the age of 65
ITP 1 – your payments into the ITP 1 pension plan are terminated automatically the month before the employee turns 66. ITP 2 – your payments into the ITP 2 pension plan are terminated automatically the month before the employee turns 65. The company and the employee with ITP 2 can come to a voluntary agreement that the company will continue to pay into the occupational pension. In the case of an agreement regarding continued occupational pension, only ITP 1 can apply. In this case, you have to report the employee as beeing newly employed to Collectum. You then have to continue to report the employee’s salary each month as are the terms in ITP 1. The employer’s contributions you pay to Skatteverket, the Swedish Tax Agency, are lower for employees born in or before 1958. Some insurances continue to apply after your employee has turned 65: Trygghetsförsäkring vid arbetsskada (TFA), a work injury insurance always applies when a person is working. Tjänstegrupplivförsäkringen (TGL), a group life insurance applies until the month before the employee turns 70 and is working at least 8 hours a week. If you have the insurance with Alecta, you include the employee in your Tjänstegrupplivförsäkringen (TGL), group report to Collectum. Kompetens- och omställningsstöd, the skills and transition support applies up until the month in which the employee turns 66.
The company and the employee can come to a voluntary agreement that the company will continue to pay into the occupational pension. In this case, you have to report the employee as being newly employed to Collectum. You then have to continue to report the employee’s gross salary each month. This information is only available in Swedish at collectum.se.
If the employee continues working after the age of 65, you have to report the employee as being newly employed to ITP 2, as ITP disability pension insurance continues to apply up to the age of 66. This applies if the employee is working at least 8 hours per week. This information is only available in Swedish at collectum.se.
If the white collar worker becomes ill after the age of 65.
The general health insurance applies to everyone - but there are some limitations when the employee turns 66 years old. For example, the employee cannot receive sickness benefits from Försäkringskasssan, the Social Insurance Agency.
Days 1-14, make a qualifying deduction equal to 20% of the average sick pay per week. The suspension deduction can be calculated in different ways depending on which collective agreement your company is covered by.
Then pay sick pay which is 80% of the salary and any other employment benefits. Remember to note the day the employee fell ill.
Day 8, you need to receive a doctor’s certificate from the employee.
Day 15, you have to report the employee as sick to Försäkringskassan, The Social Insurance Agency so that they can pay out sickness benefit.
Days 15–90, you may also have to pay sick pay according to collective agreement. Check what applies with your trade union or employers’ association.
An employee over 66 years old may also be entitled to sickness pension from day 91–180, if the Social Insurance Agency pays out sickness benefit. Report as usual to Collectum.
Important to remember
- The employer’s contribution is lower for employees born earlier than 1958.
- TFA, a work injury insurance, applies to everyone, irrespective of age.