Hire employees and contractors in Sweden

Remote’s guide to employing in Sweden.

  • Capital city

    Stockholm

  • Currency

    Swedish krona
    (kr, SEK)

  • Population size

    10,137,371

  • Languages spoken

    Swedish

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.

  • Capital city

    Stockholm

  • Currency

    Swedish krona
    (kr, SEK)

  • Languages spoken

    Swedish

  • Population size

    10,137,371

  • Ease of doing business

    Very easy

  • Cost of living index

    $$$$ (21 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    25%

  • GDP - real growth rate

    1.3%

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.

Risks
of misclassification

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.

Public holidays

Date
Holiday Name
Saturday, January 1, 2022New Year's Day
Thursday, January 6, 2022Ephiphany
Friday, April 15, 2022Good Friday
Sunday, April 17, 2022Easter Sunday
Monday, April 18, 2022Easter Monday
Sunday, May 1, 2022Labour Day
Thursday, May 26, 2022Ascension Day
Monday, June 6, 2022Swedish National Holiday
Saturday, June 25, 2022Midsummer Day
Saturday, November 5, 2022All Saints Day
Sunday, December 25, 2022Christmas Day
Monday, December 26, 2022St Stephen's Day

Minimum Wage

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.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Sweden fast. The minimum onboarding time we need is only 10 working days.

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:

  • Medical insurance plan
  • Dental insurance plan
  • Vision insurance plan
  • Additional paid holidays
  • Flexible work schedule
  • Pension scheme
  • Life insurance
  • Other insurance

Taxes in Sweden

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Sweden.

  • Employer

    • 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

Statutory 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 parental leave

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.

Sick 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.

Bereavement leave

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 in Sweden

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

Employment termination

Termination process

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 period

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.

Severance pay

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.

Probation periods

The maximum probationary period for an employee in Sweden is six months.

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