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Country hiring guide

Hiring in Sweden πŸ‡ΈπŸ‡ͺ

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 Β· 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

  • No statutory minimum wage
  • Set by sector collective agreements

Payroll cycle & extra pay

  • Monthly, usually the 25th
  • No mandatory 13th salary

Public holidays

  • ~11-13 public holidays a year

Onboarding & probation

  • Probation up to 6 months
  • Converts to permanent automatically
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
Retirement pension10.21%
General payroll tax11.62%
Health insurance3.55%
Parental insurance2.60%
Labour-market fee2.64%

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 days statutory; agreements often add more

Maternity & parental leave

  • 480 days shared parental leave
  • 90 days reserved per parent

Sick leave

  • Employer pays days 2-14 at 80%
  • Forsakringskassan pays after day 14

Other leave

  • Paid child-care leave (VAB); study and care leave
Employment termination

Ending employment in Sweden

Notice

  • 1-6 months by tenure (Employment Protection Act)

Severance

  • No statutory severance; objective grounds required

Probation

  • 2 weeks' notice to end probation early

Contractor risk

  • Courts assess real subordination; reclassification risk

*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.

Get a Sweden quote