On February 26, 2025, the Swedish Government issued a press release stating that Sweden and Australia will soon begin negotiations for a social security agreement.
A social security agreement aims among other things to clarify and regulate social security affiliation and the accrual of social security benefits for individuals residing in one country but temporarily working in the other contracting country. This provides greater predictability for international personnel transfers, as both the individual and the employer gain clarity on the social security coverage. Additionally, it eliminates the risk of paying double social security contributions or to fill a gap in benefit protection for the employee.
The scope of social security benefits regulated by Sweden's current agreements on social security with other countries varies, ranging from solely pension benefits to encompassing all aspects of social security. Typically, employees sent by their employer to perform work on their behalf in the other country for a limited period can remain in their home country's social security system (for the parts covered by the agreement). It has not yet been determined which specific situations and benefits will be covered by the agreement between Sweden and Australia.
According to the government press release, the negotiations with Australia aim to enhance social security for individuals who have lived or worked in both countries. A social security agreement would be beneficial both for companies and individuals in both countries. KPMG is positive to the initiation of these negotiations between Sweden and Australia and will monitor the developments closely.
KPMG has extensive experience in assisting with matters concerning personnel moving between Sweden and Australia, as well as other countries. If you have questions about this or want to know how it can affect your operations, you are welcome to contact us.
