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Sweden is one of the most attractive countries in Europe for global employers, known for its strong labour protections, transparent business practices, and highly skilled workforce. With a modern economy and a high standard of living, Sweden offers great opportunities for companies looking to hire remote talent or expand their presence in Northern Europe.
Sweden is a highly developed labour market with unique employment practices shaped by strong trade unions and collective bargaining. Employment terms, including wages and working conditions, are typically governed by collective agreements, even if the employee isn’t part of a union.
Discover more about salaries, employment costs, and legal requirements for hiring in Sweden. Get the full hiring guide now!
All employment in Sweden must be governed by a written agreement. Employment contracts can be permanent or fixed-term and must clearly define job duties, salary, working hours, probationary period (if applicable), and other terms.
Notice periods: 1 - 6 months
Termination of employment: Must follow strict labour laws and, in most cases, must be objectively justified.
Want to get all the details of employment contracts in Sweden? Get our full template now!
Sweden offers one of the most comprehensive benefits systems in Europe. In addition to mandatory social protections, employers often provide additional perks to stay competitive in the talent market.
Want a full breakdown of all the employee benefits available in Sweden?
Sweden has a progressive income tax system and high social contributions. Employers are responsible for withholding taxes and reporting payroll details to the Swedish Tax Agency.
Capital gains tax: Generally 30% on investment income.
Payroll in Sweden must align with the employment contract and relevant collective agreements. Employers are responsible for paying salaries, withholding taxes, and submitting monthly payroll declarations.
Salary payment deadline: Typically by the 25th of each month (can vary)
Taxes and contributions payment deadline: By the 12th of the following month
Payroll declarations deadline: By the 12th of the following month
Payroll currency: Swedish Krona (SEK)
Swedish labour laws focus on protecting employees and promoting fair employment conditions. Most regulations are shaped by the Employment Protection Act and collective agreements.
Total employment cost:
Minimum wage: No statutory minimum wage
Probation period: Up to 6 months
EOR services in Sweden enable you to legally employ individuals in the country without opening legal entities. Your EOR will take over all the legal responsibilities as an official employer, including:
PEO services in Sweden provide HR and administrative support, while you remain the legal employer for your team. They are ideal for employers who already have legal entities in Sweden but need support to manage their workforce operations, including:
Native Teams’ payroll calculators are adjusted to 85+ countries’ local labour laws, including Sweden. Using our calculator, you can easily estimate net and gross salaries, employer/employee contributions, and other mandatory deductions in the country.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: August 11, 2025
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When working with gig workers or freelancers in Sweden, it’s important to define the relationship clearly to avoid misclassification. Freelancers are considered self-employed and manage their own taxes and social security contributions. They typically work under a service contract rather than an employment contract.
Employers must avoid exercising control similar to that of a traditional employee, such as setting fixed working hours or integrating freelancers into their internal team structures.
