Sweden's social security system covers virtually all employed and self-employed persons in the private and public sectors, as well as all residents of Sweden, whether working or not. In general, all persons residing in Sweden are covered under the basic pension program. In addition, persons between the ages of 16 and 65 who work in Sweden are covered under the ATP program for years in which their earnings exceed a base amount.

Both the basic pension program and the ATP program are financed by contributions from employers and self-employed persons; employees do not contribute to either program. The basic pension program also receives a subsidy from the national Government.