* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Stockholm
Currency

Swedish krona (kr)

Timezone

CET (GMT +1)

Payroll
Monthly
Employment Cost

31.42%

Annual Leave

25 days

In-demand Specialties*
E-Commerce, Retail, Specialised Medical Professionals

The Ultimate Guide to Hiring Employees in Sweden

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Sweden-guide

Key Considerations Before Hiring In Sweden

Employing in Sweden requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Sweden with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Sweden quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Sweden secured the fourth position in the global competitiveness rankings by the International Institute for Management Development, attributing its success to a technologically advanced, innovative, and dynamic economy.

The government ensures superior living conditions and social protections compared to neighbouring and allied nations. The nation's prosperity has led to the establishment of a modern distribution system and a proficient workforce.

Sweden boasts a commendable work-life balance, incorporating flexible work hours and generous parental leave regulations. This facilitates Swedish employees in maintaining high levels of motivation and commitment to their work.

The Swedish workforce stands out for its high qualifications, motivation, and a strong emphasis on technological skills. The World Bank also commends Sweden for its open and liberal approach to trade and business.

playroll-good-to-know

Fundamental Aspects of Employment in Sweden

In Sweden, employers must provide a written agreement outlining the specifics of the employment arrangement. They are obligated to communicate the following terms to employees within a week or month of commencing their employment:

  • Identification of both parties
  • Starting date
  • Workplace and working hours
  • Contract duration
  • Job title and description
  • Payment information
  • Overtime hours and pay
  • Notice period for termination and changes to working hours
  • Collective agreement (if applicable)
  • Training by employer (if applicable)
  • Paid annual leave entitlements
  • Rules for termination
  • Employer’s social security contribution

Probationary Period in Sweden

The employment contract or collective agreement typically sets a probationary period of up to 6 months. If termination doesn't occur within this period, employment automatically becomes permanent. The employer must give a two-week notice before the probationary period ends, with the salary and benefits remaining the same.

Working hours in Sweden

The regular workweek in Sweden spans 40 hours across five days, and after 5 consecutive working hours, employees are entitled to a break.

Overtime in Sweden

According to Swedish Labour Law, any hours worked beyond the standard 40 hours per week qualify as overtime and must be compensated. The monthly limit for overtime is capped at 50 hours. Although there is no statutory requirement for overtime pay, the compensation details are typically outlined in employment contracts or relevant collective agreements.

Navigating Key Aspects of Payroll in Sweden

Sweden has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Sweden

1 January - 31 December is the 12-month accounting period that businesses in Sweden use for financial and tax reporting purposes.
monthly

Payroll Cycle in Sweden

The payroll cycle in Sweden is usually monthly, with employees being paid on the 25th of the month.

Minimum Wage in Sweden

Minimum wages and salaries in Sweden

There is no established minimum wage in Sweden. They instead rely on collective agreements to determine wage standards, which may vary based on certain factors, such as age, skill level, and seniority.

Bonus Payments in Sweden

In Sweden, there is no legal requirement for employers to provide 13th-month payments; bonuses are left to the discretion of the employers.

Comprehensive Overview of Employment Taxes in Sweden

Understanding the tax obligations for both employers and employees is crucial when operating in Sweden's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Sweden.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 31.42% on top of the employee salary in Sweden.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Sweden, the typical estimation for employee payroll contributions cost is around 7.00% – 8.03%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Income tax is computed using progressive rates in Sweden. Factors like household status, the number of children, and the employee's municipality of residence, can influence the overall tax rates.

Tax Rate Income Bracket

Pension in Sweden

In Sweden, with no set retirement age, employees can start their public pension from 63, work until 69, and receive higher benefits with a later retirement and higher salary. The pension is capped at 7.5 times the annual income base amount. Many also receive occupational pensions from employers, and private pensions are optional.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Sweden tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Sweden

When it comes to terminating employment in Sweden, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Sweden, terminations without cause are not permitted, but can be initiated by either the employer, employee, or through mutual agreement. Both parties must give proper notice to terminate the contract. Acceptable terminations include:

  • Voluntarily by the employee
  • Mutual agreement
  • Contract expiration
  • Unilaterally by the employer (due to reasons like the probationary period, objective justifications, performance issues related to job suitability, misconduct, collaboration issues, or refusal to work)

Notice Period

The notice periods are specified in the employment contract or collective bargaining agreements. Individuals covered by collective agreements have a one-month notice period stated in their employment contract. For those without a collective agreement, the notice period is determined by the duration of their employment:

  • Less than 2 years of service – 1 month notice
  • 2-4 years of service – 2 months’ notice
  • 4-6 years of service – 3 months’ notice
  • 6-8 years of service – 4 months’ notice
  • 8-10 years of service – 5 months’ notice
  • More than 10 years of service – 6 months’ notice

Severance Pay

Severance is not obligatory in Sweden, but it may be necessary if specified in a collective agreement or individual employment contract.

Annual Leave Entitlements and Company Policies in Sweden

The annual leave entitlement in Sweden is 25 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Sweden

Sweden observes 13 public holidays each year, which are separate from the minimum paid leave entitlement and are taken in addition to the annual leave. The following are Sweden's officially recognised national holidays:

Holiday Date

Paid Time Off in Sweden

Maternity Leave in Sweden

Paternity Leave in Sweden

Sick Leave in Sweden

Parental Leave In Sweden

Sweden's Benefits Built Into Playroll

Competitive benefits package in Sweden

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Sweden's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Sweden

Make your benefits package in Sweden a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Sweden

Playroll allows you to provide localized benefits for employees in Sweden within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Sweden create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Sweden

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Sweden.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

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