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Your Guide to Hiring Employees and Contractors in Sweden

Capital city

Stockholm

Currency

Swedish Krona (SEK)

Language(s)

Swedish

Ease of doing business

Very easy

Payroll frequency

Monthly

Employer taxes

31.42%

Payroll

Payroll Cycle

In Sweden, the payroll frequency is usually monthly. Employers must make the payment of salaries on the 25th of each month.

Minimum Wage Requirements

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. We can help you determine which minimum wage applies to your employees.

Individual Income Tax

Income tax is calculated according to progressive rates. 

Multiple additional factors may impact overall rates such as the household status, the number of children, and the municipality where the employee lives.

Up to SEK 523,000

National Tax rate: 0%

Municipal Tax rate: 32%

Over SEK 523,000

National Tax rate: 20%

Municipal Tax rate: 32%

Employer Cost:

The employer cost is generally estimated at 31.42% of the employee salary.

  • Health Insurance: 3.55%
  • Parental Insurance: 2.60%
  • Retirement Pension: 10.21%
  • Survivors Pension Contribution: 0.60%
  • Labor Market Fee: 2.65%
  • Occupational Injury: 0.20%
  • General Payroll Tax: 11.62%

Working Hours

Work Week

Monday to Friday.

Overtime Pay & Maximum Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is not mandatory and may be included in the salary. 

If specified in an employment agreement, hours outside of standard work hours can be considered overtime. 

Employees can work a maximum of 50 hours of overtime per month and a maximum of 150 hours per year. 

For additional hours, employees are paid an hourly rate of 168% of the hourly rate.

Employment Termination

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.

Probation periods

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

These details are subject to change by the respective government and regulatory authorities in each country.

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