Expert Guidance Urges Swedish Freelancers to Double Hourly Rates and Consider Hidden Costs
Swedish freelancing expert Axel Schad advises doubling base hourly calculations to include key costs and recommends rate adjustments for experience and inflation, with Frilans Finans providing hassle-free invoicing solutions.
- • Freelancers should double hourly wage calculations derived from monthly salaries to include additional costs like insurance and pension.
- • Use of salary statistics from SCB and unions helps set competitive and fair prices.
- • Regularly adjust rates based on experience, new skills, and inflation to preserve value.
- • Frilans Finans offers an "egenanställning" alternative enabling invoicing without starting a company.
Key details
Freelancers in Sweden often struggle with setting appropriate billing rates, a challenge that Axel Schad from Frilans Finans addresses by advising against simply converting a monthly salary to an hourly wage. Schad emphasizes the importance of accounting for additional expenses such as insurance, pension, vacation, and administrative tasks, which conventional hourly calculations usually overlook. He recommends estimating rates by taking a typical monthly salary in the relevant profession, translating that into an hourly rate, and then multiplying by two to cover these extra costs.
Using objective tools like salary statistics from SCB and union wage data, freelancers should evaluate their rates relative to median salaries. Schad advises that new freelancers might start with lower rates, while experienced or specialized professionals can command higher fees. Regularly reviewing and adjusting prices is crucial, especially to reflect inflation and personal skill development. Although raising prices may be daunting, setting a personal minimum rate is essential to maintain confidence and prevent industry-wide price erosion. In some cases, lowering rates for long-term engagements with reduced administrative duties may be justified.
For freelancers hesitant to establish their own companies, Frilans Finans offers "egenanställning," a model that enables freelancing without starting a business by managing administrative burdens and invoicing. Since 1999, Frilans Finans has supported over 100,000 self-employed individuals by providing a secure, simplified invoicing solution.
This comprehensive guidance helps freelancers price their services fairly, ensuring they include all costs and keep pace with market conditions while maintaining professional self-respect and financial security.