Roof set for employees entitled to pension contributions under the ITP 1 pension plan

On 1 January 2023, an income roof was set for employees who are entitled to pension contributions under the ITP 1 pension plan. The vast majority of employers bound by a white collar collective bargaining agreement are to apply the ITP pension plan. For the employees it is either ITP 1 or ITP 2 plan that applies. There is already an income roof in the ITP 2 pension plan. As a main rule, the ITP 1 pension plan applies for employees born in 1979 or later, however, employers who have applied for an exemption with the ITP board may apply the ITP 1 pension plan for all employees. The income roof in the ITP 1 plan is capped at SEK 185,750 per month. This means that if the employee's total salary payment, including variable salary, for one month exceeds SEK 185,750, the exceeding part is not considered as pensionable income under the ITP 1 pension plan. However, employers and employees may mutually agree that salaries above this cap shall still be considered as pensionable income.