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Country hiring guide

Hiring in Sweden 🇸🇪

Sweden offers a highly skilled, English-fluent workforce within a collective-agreement system and generous parental benefits. All-in employer cost runs around 1.31x the gross salary. Here is what to know before your first Swedish hire.

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Capital cityStockholm
CurrencySwedish krona (SEK)
LanguagesSwedish
Population~10.5 million
Payroll frequencyMonthly
VAT standard rate25%
Employer burden*~31% of gross
TGTC flat EOR fee$399/mo · Tier A
Overview

Employing in Sweden

Employment runs under the Employment Protection Act (LAS) and, for most roles, a collective agreement that can add pension and insurance obligations. There is no statutory minimum wage; pay floors come from collective agreements.

Minimum wage

There is no statutory minimum wage. Pay minimums are set sector by sector through collective agreements*.

Payroll cycle & extra pay

Monthly payroll. There is no statutory 13th salary; holiday pay is handled through the vacation system.

Public holidays

Around 11 to 13 public holidays a year, several of which fall on fixed dates.

Onboarding & probation

Written terms are standard. A probationary employment of up to six months can convert automatically into a permanent role.

Employer costs

What you pay on top of salary

Employer social contributions (arbetsgivaravgift) are 31.42% of gross salary, covering pension, health, parental, and other social insurance, with occupational pension often added by collective agreement.

Employer contribution*Rate
Employer social contributions (arbetsgivaravgift)31.42%*
Occupational pension (collective agreement)~4.5%+*

Collective agreements

Where a collective agreement applies, the employer also funds occupational pension and insurance on top of the statutory contributions.

Employee-side taxes

Employees pay municipal and, above a threshold, state income tax, withheld at source. Withholding and reporting are the employer's responsibility, which under EOR means ours.

Types of leave

Statutory leave in Sweden

Annual leave

25 paid vacation days a year under the Annual Leave Act, with vacation pay on top.

Parental leave

480 days of parental leave shared between parents, most of it paid by the state, with a right to reduce hours.

Sick leave

The employer pays sick pay for days 2 to 14, after which the Social Insurance Agency (Försäkringskassan) takes over.

Other leave

Statutory leave exists for studies, care of family, and certain civic duties.

Employment termination

Ending employment in Sweden

Process & notice

Dismissal needs objective grounds (redundancy or personal reasons) and follows notice of one to six months by tenure. Selection in redundancies broadly follows a last-in, first-out rule.

Severance

There is no general statutory severance beyond paid notice, though collective agreements can add transition support.

Probation

Probationary employment of up to six months is allowed and converts to permanent unless ended.

Contractor risk

A self-employed person working like an employee can be reclassified, with back employer contributions.

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Employ in Sweden without opening an AB

Compliant Swedish employment contract, payroll, social contributions, and benefits, handled. One invoice, flat $399 per month.

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