Facts & stats
Sweden is the third-largest country in the European Union. With its population of just over 10 million, most people live in the major cities, such as Stockholm and Göteborg. Sweden has a strong economy and one of the highest standards of living in the world. In addition to its thriving knowledge industries, Sweden is home to many major manufacturing and natural resources companies.
Grow your team in Sweden with Remote
Looking to employ workers in Sweden? Companies hiring in Sweden must either own a legal entity in the country or work with a global employment solutions provider, usually one that offers employer of record services. Remote can employ your team in Sweden on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Swedish team.
Sweden, like many other countries, treats self-employed contractors and full-time employees differently. Misclassification of contractors in Sweden may lead to fines and penalties for the offending company.
Employing in Sweden
The majority of workers in Sweden fall under the protection of a collective bargaining agreement, even those who are not members of a specific union. These agreements cover many areas where other countries rely on national employment laws. Employing workers in Sweden means understanding which bargaining agreements apply to your employees and following the agreements closely.
To employ workers in Sweden, contact Remote to learn more about your options.
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In Sweden, there is no minimum wage. However, different industries enforce their own minimum wages through collective bargaining agreements between trade unions and employers’ organizations. Most companies and workers in Sweden are subject to these rules. Remote can help you determine which minimum wage applies to your employees.
- For customers of Remote, all employee payments will be made in equal monthly instalments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Sweden fast. The minimum onboarding time we need is only 48 hours. Onboarding needs to completed before 10th of month to capture payroll, otherwise will be paid following month.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Competitive benefits package in Sweden
Beyond providing your employees with all statutory benefits in Sweden, Remote can help you create a custom benefits package for your team. A competitive benefits package may include perks such as:
Taxes in Sweden
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Sweden.
- 31.42% - Total Payroll Taxes (Covers national health insurance, parental insurance, retirement benefits, workers’ compensation, and other taxes)
- 31.42 % - Total Cost of Employment
Employee payroll taxes
- 7% - Social Security
Employee income taxes
- 0% Income up to 519,400 SEK
- 20% Income above 519,400 SEK
Types of leave
Employees in Sweden are entitled to 25 days of paid time off per year. Both part-time and full-time employees are eligible for PTO. Employers are required to enforce the use of their employees’ vacation time. Employees may roll over vacation days for up to five years, but employers should not let employees fail to take time off.
- Maternity, paternity and
Sweden has some of the most generous parental leave in the world. Both mothers and fathers are entitled to 480 days of parental leave at 80% of their usual compensation, up to a limit. In cases of multiple births, parents may take an additional 180 days of leave.
Employers in Sweden must compensate employees at 80% of their salary for the first 14 days of sick leave. For any sick leave beyond 14 days, employees must apply for long-term illness benefits with the Swedish Social Insurance Office.
Employees in Sweden are usually entitled to bereavement leave after the death of a family member. The specific amount of days is determined by the employment agreement.
- Additional types of leave
Employees in Sweden may also be entitled to additional types of paid or protected leave, depending on the terms of their employment agreement:
- Care of a sick child
- Care of relative
- Education leave
- Entrepreneurship leave
- Compassionate leave
- Military service leave
To terminate an employee in Sweden, the employer must provide the employee with a clear reason for the termination and sufficient notice. Employment contracts typically cover what is and is not a valid reason for termination.
Notice periods in Sweden depend on the specifics of the employment contract. Notice periods usually begin at one month and go up to six months for the most tenured employees. In certain circumstances, employees may be terminated without notice.
Sweden does not have a law requiring employers to provide severance pay to terminated employees. However, employment contracts and collective agreements may have their own requirements.
The maximum probationary period for an employee in Sweden is six months.