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Figuring out salary expectations in Stockholm

4 replies

ConfusedAbourKrona · 17/03/2022 09:56

I’m in the process of interviewing for jobs. One in Stockholm, one in Manchester. I live in neither, so it’s a relocation either way.

The Manchester salary is £65k (plus bonuses of some description).

The Stockholm job has a salary of up to 60000SEK a month (720000 a year). Everything sounds ridiculous in krona. This is less than the Manchester salary.

So I need to figure out what difference it would make to quality of life. I know childcare is much cheaper in Sweden - an order of magnitude so. But tax is higher and other things will be more expensive.

To some extent, it’s impossible to compare as it would be so very different. But does anyone know how far take home pay of about 30SEK a month is likely to go in supporting a family in Stockholm (including childcare for a child under 2)?

The various online calculators give averages and seem to suggest it’s much cheaper overall than London. But it’s really hard to know what that means in terms of lifestyle/choices.

OP posts:
Alaimo · 17/03/2022 13:59

Firstly, how did you end up calculating a take home pay of 30000SEK? According to Skatteverket's (Swedish HMRC) own calculator, your take home pay would likely be in the region of 42000SEK.

Secondly, if you can demonstrate that your role is a highly specialised one, then you might qualify for tax relief for the first five years - this means 25% of your income is exempt from tax (so this would give you a take home pay closer to 50000SEK). There is more info here: forskarskattenamnden.se/. However, you can't apply until you're in Sweden, and while I know people who have successfully applied for this, I know others who have been unsuccessful, so it's a bit of a gamble.

Regading living costs, I'd say a take home pay in the region of 40k is doable, but it won't be a life of luxury necessarily. Most families (unless divorced/separated) are two-income households, and prices, especially rents are geared up to that. Depending on how central you want to live, you're probably looking at at least 13000sek in rent for an apartment in the suburbs - easily double that for somewhere very central. There are cheaper flats available, but you usually need lots of years in the housing queue to have any chance of getting one of these. If you haven't already done so, take a look at www.blocket.se to get an idea of the cost of renting or www.hemnet.se for the cost of buying.

There is no such thing as council tax, and if you live in a flat then usually heating is included in your rent, so you'll save a bit of money there.

Groceries are more expensive, but not hugely so, I'd say. We're a two-adult (no kids) household and usually spend around 1000sek/week.

The main thing that's expensive in Sweden are the non-essentials: alcohol, eating out, hotel accommodation, etc. However, most Swedes I know love the outdoors and I think (based on the people I know with kids) it's much more common for people to just meet up outdoors, in outdoor playgrounds, parks, forests, etc. My impression if people are more likely to go for walks or engage in other outdoor activities which cost very little money.

For comparison, my husband and I have a combined income of around 50000sek/month and our rent is 12500sek (we're not in Stockholm). We don't place much emphasis on luxuries, but we can afford everything we want, including holidays, day trips, occassional eating out, etc and put about 10000sek into a savings account every month.

Finally, it's maybe worth noting the non-financial benefits of working in Sweden. My sense is that employers here are much more supportive of parents. I don't know the details, but I believe parents get extra days off parental leave that they can take until the child is 7, which makes it easier to take additional time off during school holidays, when kids are sick, etc. I personally find work-life balance to be much better here, though it might be different in your specific industry of course.

ConfusedAbourKrona · 18/03/2022 14:51

Thank you. That’s so helpful.

I put it into an online calculator and it spat out a pretty much 50% tax rate. But obviously that’s not right. So that’s good.

The lifestyle differences is part of the Swedish appeal really.

OP posts:
tendence · 23/03/2022 17:54

Your income and outgoings will change a lot, but you may not have less disposable income. 60k per month is definitely a good salary in Sweden. However, you don't say anything about your spouse - the Swedish society is organised in a way that expects both partners/parents to work, not just one. For example, there is no tax relief to give a married partner if you earn a lot - that was removed in the early 70s to encourage both people to work.

Yes, initial tax is higher, but you get a lot more for it. There are so many things that people have to pay for in the UK, but that are free in Sweden. Culture, outdoors summer entertainment and outings are one example - all councils put on free summer entertainments of various kinds in the summer that is free, loads of free things for children etc, loads of free or cheap culture.

Local transport is massively cheaper too. A 30 day period ticket for the Stockholm area - which includes an hour north of Stockholm and an hour south - costs 970 SEK/approx £70. Compare that to my ticket from my London suburb to the centre (back in the time when I was allowed to commute ;-) ) - I paid more than £250 for a month.

Childcare will seem insanely cheap. Your household will be in the top earning category and for Stockholm city council you will pay 1572 SEK per month/approx £115 - per month - for full-time care, as many hours as you need to work.

Electricity is generally cheaper, although the past few months have meant a hike in prices. Should get better in the summer. Heating is included in almost all flats - very unusual to have to pay extra.

Not sure if you will get help finding a home? The drawback of the system with controlled rents is that you have to be on waiting lists for a very long time to get a firsthand, cheapish contract. The only option may be a sublet. If so, check very very carefully that whoever owns the flat has been allowed to let his/her flat - Swedish flats are almost always based on a housing coop system, where, formally, you don't actually own a flat, but you are a member of the housing coop with a right to use your flat. This means that you have to have acceptance from the housing coop to sublet. If they haven't got that, you may be thrown out. Also, if a subletter charges you too much you may in some circumstances be able to take them to court and get some money back. The rights are generally with the renter/the 'weaker' party, unlike the UK.

Good luck!

Fimofriend · 28/03/2022 16:21

Not only is childcare cheaper but it is also easier to get access to childcare.

Sweden is an extremely equalitarian country so there is a lot less misogyny than in Britain and there is less risk that your children or you for that matter will be excluded or "forgotten" at school, workplace, or among the neighbours.

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