A Call for Higher Transparency in Employee Costs
The leaders of Svensk Handel, Almega, Teknikföretagen and Svenskt näringsliv argue for higher awareness and transparency when it comes to how much employees cost employers. A study shows that only one out of five people have a somewhat correct belief of how much the general pay roll tax (the arbetsgivaravgift), that is not visible on the pay slip, amounts to. These 'hidden taxes' on wages is almost 500 Billion SEK a year.
It would be better to impose a system in Sweden like they have in Denmark, where the full costs and taxes of the wage is accounted for, they argue.
Although imoveri has no opinion about the specific tax politics in Sweden, the debate article touches upon a very relevant fundament in our service offerings, namely that transparency is good and that employees seldom have the chance to understand how much employers spend to compensate their work. If they can become more aware of these costs, they can make more informed decisions and trade-offs in their compensation and benefit packages, which is good for both employers and employees.
- This week's debate on higher transparency of costs in the labor markets is most welcome. We at imoveri will keep advocating for higher transparency and better possibilities for employees to know more about the real costs of their employments, and is glad that others raise these issues too. Better informed employees and employers does not only make more informed decisions, they also make better ones, that are more aligned with their real preferences, says Rolf Berg, founding partner of imoveri.
The debate article in DI Debatt can be found here (in Swedish)