Easily manage employment in Sweden

Payroll services in Sweden

Sweden has a strong economy with key industries in technology, automotive, and finance. With specific labor laws and tax regulations, employers in Sweden must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Sweden

Employers in Sweden must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Sweden does not have a statutory minimum wage; wages are determined by collective agreements.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Sweden is 40 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, usually regulated by collective agreements and employment contracts.

Taxation and social security contributions

• Personal income tax: Sweden has a progressive income tax system with rates ranging from 0% to 57% depending on income levels and municipality.
• Employer contributions:
• Social security: Approximately 31.42% of the gross salary.
• Employee contributions:
• Social security: Varies depending on pension schemes and collective agreements.
• Corporate tax: The corporate income tax rate in Sweden is 20.6%.
• Tax reporting: Employers must file payroll taxes and contributions with the Swedish Tax Agency (Skatteverket) regularly.

Payroll compliance in Sweden

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security, income tax, and pension contributions.
• Employers must stay updated on changes to Sweden’s labor laws and tax regulations to avoid penalties.

Run payroll in Sweden with Remote

Managing payroll in Sweden requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.