How to employ an Ukrainian refugee as a private indvidual
We get a lot of questions about what applies when you as a private person are to employ a Ukrainian refugee. In many Facebook groups, Ukrainian refugees offer their services, for example with gardening or housework. Do you have a job to offer but have thought about how to handle the payment so that it will be white and nice? It is actually easier than you might think for a private individual to pay a white salary to a Ukrainian. In addition, you can make “rut” and “rot” deductions for the employer contribution.
Ukrainian refugees have the right to work in Sweden
The EU has activated the Mass Refugee Directive. This means, among other things, that Ukrainian refugees have the right to work in Sweden. Refugees who come to Sweden register with the Swedish Migration Agency and then receive a so-called LMA card (law on the reception of asylum seekers). You as an employer can ask to see the card. Everyone who has been able to prove their identity has the designation UT-UND, in other word exemptions from the requirement for a work permit on their card. You as a private person can thus legally employ a Ukrainian refugee – as long as you pay the salary white.
Private individuals can hire other private individuals – no registration required
All private individuals have the right to employ other private individuals and pay wages. No registration is required, but you need to deduct preliminary tax and declare the salary you pay. You can easily do this in Diretto’s award-winning digital service.
“Rut” and “rot” deduction for an Ukrainian refugee that you have employed privately
You can also make “rut” and “rot” deductions for a person you have hired yourself. The deduction covers the employer’s contributions so your cost after tax is equal to the hourly wage. If you pay SEK 160 per hour, your cost after “rut”/”rot” will be SEK 160. You use the simplified employer declation to declare the salary and the deduction. In Diretto’s service, it is created automatically.
Also read (Swedish): Peters 4 bästa tips när du anställer bygg och trädgårdshjälp privat
No coordination number is needed to get started and pay salary
Ukrainian refugees and others who are new to Sweden may not yet have a social security number or coordination number. This is not a problem because it is possible to pay the tax without a number. It is even the case that when someone has received a salary and paid tax, they have the right to receive a coordination number by registering for A-tax. Much in Sweden will be easier if you have a coordination number.
No bank account needed, you can pay the net salary in cash
Many refugees have not had time to get a bank account, but that is no obstacle. The bank card that asylum seekers receive from the Swedish Migration Board cannot be used to deposit a salary. However, you can pay the net salary in cash and handle the tax with Swish in Diretto’s service. Having received a salary makes it easier to open a bank account in Sweden. The Revolut service, whose founder is Ukrainian, also offers an easy way for Ukrainian refugees to open a bank account.
Pay salary at the level of a collective agreement
Paying a decent salary means that you pay at least at the level of a collective agreement. For gardening, for example, the minimum wage level for a person who has reached the age of 18 without experience is SEK 138 per hour, including holiday pay. A qualified person who has education and more than 3 years of experience must have at least SEK 172 per hour, including holiday pay according to the collective agreement. If you are unsure, we at Diretto can help you check out what the collective agreement says for the job you have to offer.
Calculate your cost by “rut” or “rot” deduction in Diretto’s salary calculator
Use Diretto for salary, tax and “rut” or “rot” deduction
As a private individual and employer, you can handle the administration manually. But for from SEK 69 per payment, you can easily handle everything in Diretto’s service, you can handle the salary, tax and any “rut” or “rot” deduction. The employee automatically receives a salary specification. On our page Diretto.se, you can calculate how much the wage cost will be with or without a “rut”/”rot”.
SEK 1,000 or more in salary requires a declaration
If you as a private person pay someone over SEK 1,000, the salary needs to be declared. Maybe you have read that it is enough to send a control statement if the salary is below SEK 10,000? We really advise against this method because then the possibility of rut and ot deductions disappears and the employee can get unpleasant surprises in the form of residual tax for both income tax and social security contributions. The best thing is that the employer declares, then the employee avoids surprises and you as an employer can make “rut”/ “rot” deductions for the social security contributions.
Checklist for when you employ an Ukrainian refugee as a private individual
- Agree on tasks and hourly wages
- Calculate and pay the net salary
- Give the employee a salary specification
- Declare the salary and the “rut”/”rot” deduction in the simplified employer declaration
- Pay the tax to the Swedish Tax Agency
All administration can be easily handled in Diretto’s service. If you have any questions, you are welcome to contact us via Support@diretto.se
