There is no statutory minimum wage, but a minimum wage has been agreed in many collective agreements. By international standards the differences between incomes for different groups – young people, the low-skilled and the highly-skilled – are considered to be very small.

Workers covered by collective agreements are often paid hourly rates that are governed by the collective agreement, but there are exceptions.

Almost all white-collar workers are paid a monthly salary and pay levels are set individually throughout almost the entire labour market. This means that new employees are expected to negotiate their own starting salary. Those who are members of a trade union can obtain help and advice in connection with pay negotiations. 
Pay increases are determined through annual pay negotiations at central and local level. 

Employers have an obligation to deduct PAYE (pay as you earn) tax. This tax includes all social insurance contributions. Employees are entitled to receive a written salary specification showing their salary and the deductions made. Employers must also provide an annual income statement (kontrolluppgift) to the employee and to the National Tax Board. 
Salaries are usually paid into a bank account at the end of the month. 

Text last edited on: 11/2009