Salary setting in municipalities and regions
Salary setting for employees of Swedish municipalities and regions differs from that in the state sector in that it is primarily individualised and differentiated. This means that pay is determined on the basis of an overall assessment of the individual employee’s responsibilities, skills, performance and achievement of goals.
How the salary setting process works
The process usually involves the following steps:
- Salary dialogue: The employee discusses work performance, results and development with their manager.
- Assessment: The manager conducts an individual assessment based on the organisation’s salary criteria.
- Salary review: Salaries are adjusted through annual salary reviews.
- Dialogue/agreement: In some cases, the salary is set directly through dialogue between the manager and the employee, (known as a salary-setting dialogue); in other cases, negotiations take place between the employer and the trade unions.
Unlike, for example, for employed doctoral candidates, there is therefore no fixed pay scale; instead, salary development is linked to performance and the organisation’s needs.
Central collective agreements
The most important pay and employment conditions are governed by central collective agreements between the employers’ organisation, the Swedish Association of Local Authorities and Regions, (and Sobona for certain companies), and the trade unions.
The most important agreements are:
- HÖK (main agreements)
These are sector-specific agreements, (e.g. for teachers, healthcare staff or white-collar workers), covering salaries and general terms and conditions. The HÖK agreements set out the framework for the salary setting process, often without centrally determined pay rises in terms of kronor or percentages. - AB (general provisions)
These regulate terms of employment such as working time, annual leave, sick pay etc, but not pay levels as such. - Salary agreements within each HÖK agreement
These specify the principles for individual salary setting, often with a focus on local salary determination and dialogue between managers and employees.
Key characteristics
- Individual pay: Salaries are set locally, not centrally.
- Non-numerical or numerically guided agreements: Some agreements do not specify central pay rises (‘non-numerical’), whilst others specify a certain range.
- Link to organisational objectives: Salaries should support the organisation’s goals and competence needs.
- Trade union involvement: Trade unions play a key role in monitoring the process and ensuring it is carried out correctly.
In summary, salary setting within municipalities and regions is based on a local and individualised model, where central collective agreements primarily specify frameworks and principles rather than exact pay levels.