Menningarbrot

Menningarbrot, also known as salary compensation or income-based benefit, is a type of benefit provided to public sector employees in Sweden. The term "menningarbrot" is derived from the Swedish words "mening" meaning meaning and "arbet" meaning work. It is a form of gradual retirement system, where employees receive a portion of their salary as a benefit, based on their years of service and salary.

The menningarbrot system was introduced in 1948 as a supplement to the Swedish pension system. It allows public sector employees to retire and receive a benefit, which is typically a fixed percentage of their final salary, rather than a retirement pension based on their contributions. The benefit is usually 1/20 of the employee's salary for every year of service, up to a maximum of 15 years of service.

Menningarbrot is funded through a combination of employer and employee contributions, with the employer typically contributing a larger share. The benefit is also subject to a maximum salary cap, which is adjusted annually to keep pace with inflation. Employees who are eligible for menningarbrot also have the option to choose alternative benefit structures or reserve contributions to a private pension fund.

The menningarbrot system is designed to provide a more generous retirement benefit to public sector employees, compared to the retirement pension based on contributions. However, its application and benefits can vary depending on the specific workplace or industry, and changes to the system have occurred over time.