Sweden
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Sweden
Everything you need to know about payroll, benefits & hiring top talent in Sweden
Currency
Swedish Krona (SEK)
Salary payment frequency
Monthly
Capital
Stockholm
Time Zone
GMT +1:00
Official Languages
Swedish
Is English spoken?
No
Quick Links
Introduction
General Overview & Economic Facts
- Sweden (Sverige), officially known as the Kingdom of Sweden (Konungariket Sverige), is a Nordic country in Northern Europe
- Sweden spans and area of 450,295 km2 (173,860 sq mi), making it the largest country in northern Europe, and has a population of 10.4 million
- Sweden maintains a Nordic social welfare system which provides universal health care and tertiary education
- Sweden has the world’s eleventh-highest per capita income and ranks very highly in terms od quality of life, education, health, protection of civil liberties, income equality, gender equality and human development
- Its economy ranks 23rd by nominal GDP (2019) and 40th by PPP (2020)
- Sweden’s HDI ranking is 7th (2019)
Why Employ In Sweden?
- The main exports from Sweden are chemicals, machinery and transport equipment, rubber products, food, clothing and textiles
- 10.08% of the population is between the ages of 15 and 24 years, with 39.01% of the population being between the ages of 25 and 54. Sweden has a fairly youthful population, making it a favourable country to employ young, energetic employees
Overview Of The Labour Law
- The Swedish labour law framework is based on civil rules that govern most aspects of an employment relationship
- Swedish employment law is regulated by statutes and case law, as well as by collective bargaining agreements
- These collective bargaining agreements are of great significance, and they often contain regulations which deviate from statutory provisions in order for them to be applicable to the business sector to which they apply. Regulations regarding employment protection are found in the Employment Protection Act
- Disputes are finally settled by the Swedish Labour Court
Fun Country Facts
- Sweden is imports other countries’ waste to recycle it
- One of the Swedish Kings became a pirate after he was forced away from the crown
- Anders Celsius, Swedish astronomer extraordinaire, invented the centigrade system and the thermometer that made it work
Why Use Playroll Services For Sweden?
- Employing in Sweden requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Sweden
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Unemployment Insurance Fund
Calculated on total taxable remuneration
Under 65 years old
0.00%
Older than 65 years old
2.64%
National Pension Contribution
Calculated on total taxable remuneration
10.21%
Health Insurance
Calculated on total taxable remuneration
Under 65 years old
3.55%
Older than 65 years old
0.00%
Survivor’s Pension
Under 65 years old
0.60%
Older than 65 years old
0.00%
Occupational Accident Insurance
Calculated on total taxable remuneration
Under 65 years old
0.20%
Older than 65 years old
0.00%
General Payroll Tax
Calculated on total taxable remuneration
Under 65 years old
11.62%
Older than 65 years old
0.00%
Parental Insurance
Calculated on total taxable remuneration
Under 65 years old
2.60%
Older than 65 years old
0.00%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
National Pension Contribution
Calculated on total taxable remuneration
Calculated on a maximum salary of SEK 550,400.00
10.21%
Income Tax
Income Tax is ‘Pay As You Earn’
Income bracket per annum
National Income Tax:
0.00 – 523,200.00
0.00%
523,201.00 or more
20.00%
Municipal Income Tax:
0 – 523,200.00
± 32.00%
523,201.00 or more
± 32.00%
Employment Terms
General
Minimum Wage
- There is no statutory minimum wage
Working Hours
- Maximum of 40 hours per week
- Minimum of 30-minute meal interval after 5 hours of work
- Typical working hours start at 09h00 and end between 17h00, Monday to Friday
Overtime
- Maximum of 50 hours per month
Notice Period
- Employed between 0 and 2 years- 1 months’ notice
- Employed between 2 and 4 years- 2 months’ notice
- Employed between 4 and 6 years- 3 months’ notice
- Employed between 6 and 8 years- 4 months’ notice
- Employed between 8 and 10 years- 5 months’ notice
- Employed for 10 or more years- 6 months’ notice
Severance Pay
- No statutory severance pay
Probation Period
- No statutory probation period
- Employees can expect a probation period of 6 months
Bonus
- No statutory bonus
- It is common for employers to provide key employees with discretionary bonuses
Public Holidays
Public holidays 2022
- January 1st – New Year’s Day
- January 2nd – Epiphany
- April 15th – Good Friday
- April 17th – Easter Sunday
- April 18th – Easter Monday
- May 1st – May Day
- May 26th – Ascension Day
- June 5th – Whit Sunday
- June 6th – National Day
- June 25th – Midsummer Day
- November 5th – All Saints’ Day
- December 25th – Christmas Day
- December 26th – 2nd Day of Christmas
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- Minimum 25 days per year (after 1 year of employment)
Sick Leave
- Paid leave
- Paid by employer and Social Security
- The first day of illness or injury is unpaid. From the 2nd to 14th day, the employer pays the employee 80% of their salary. After the first 14 days, the Swedish Social Insurance Agency (Försäkringskassan) provides a Sick Benefit
Maternity Leave
- Part of parental leave
Paternity Leave
- Paid leave
- Paid by Social Security
- 10 days per year
Parental Leave
- Paid leave
- Paid by Social Security
- Parents are entitled to 480 days of paid leave when a child is born or adopted. Each parent is entitled to 240 of those days. For multiple births, an additional 180 days are granted for each additional child
Bereavement Leave
- Paid leave
- Paid by employer
- 10 days per year
Adoption Leave
- Part of parental leave
Temporary Parental Leave
- Paid leave
- Paid by Social Security
- 120 days per child per year
Start hiring in Sweden today!