Employer of Record (EOR) in Sweden
Planning to grow your workforce or work independently in Sweden with full legal compliance? Native Teams’ Employer of Record (EOR) services help businesses and freelancers operate in Sweden without the need to establish a local entity.
How does an EOR in Sweden work?
Native Teams’ Employer of Record (EOR) in Sweden acts as the legal employer for both businesses and individuals, handling payroll, taxes, benefits, and compliance with Swedish labour laws. This arrangement allows businesses to expand into Sweden without the need to establish a local entity, while freelancers and contractors can work legally in the country with traditional employment benefits.
The EOR takes responsibility for employment-related tasks such as onboarding, drafting contracts, generating invoices, terminations, and ensuring full compliance with Swedish regulations, while businesses and freelancers can maintain control over their daily operations and work activities.
Who can use EOR Services in Sweden?
Sweden's Employer of Record (EOR) services simplify global expansion and talent acquisition for businesses and individuals operating in Sweden.
Businesses
EOR is an excellent option for companies that want to hire employees in Sweden but don’t want to establish a physical office or legal presence in the country. The EOR acts as the legal employer for the hired staff, managing the entire employment lifecycle in full compliance with Swedish labour laws.
Individuals
With the help of an EOR, individuals such as freelancers, contractors, and consultants can formalise their employment status in Sweden. This ensures they remain legally compliant while working independently and grants them access to benefits such as health insurance, pension plans, social security, and other traditional employment rights.
Features of Native Teams’ EOR services in Sweden
Employment status
For both businesses and freelancers, Native Teams’ EOR helps formalise employment status in a compliant manner. Businesses can hire and pay employees in foreign markets, while freelancers can gain legal recognition.
HR administration and documentation
Our EOR service manages all HR administration, including employment contracts, documentation, and more. Delegate these complex tasks to us, and easily access your documents anytime, anywhere, with a single click through our comprehensive dashboard.
Global payroll
Our payroll calculator simplifies global payroll by helping businesses and freelancers easily calculate salaries, taxes, benefits, and deductions. Employers can manage payroll across multiple countries on one platform, ensuring timely and accurate payments, while freelancers can receive payments in compliance with local tax regulations.
Benefits
Gain access to various benefits, including health insurance, pension plans, and social security. Businesses can offer these benefits to employees in foreign markets, helping attract top talent. Freelancers, on the other hand, can also access these benefits, which are often difficult to secure on their own.
Dive deeper into Sweden’s labour laws and regulations with our hiring guide
What legal requirements exist for employment in Sweden
Employment contract
In Sweden, a written employment contract is mandatory to outline the key terms and conditions of the employment relationship. This contract must comply with Swedish labour law and clearly define details like job title, salary, work hours, benefits, etc.
Work permit
Employers who wish to hire non-EU/EEA citizens must obtain a work permit for each employee to work legally in Sweden. The work permit is essential for compliance with Swedish immigration and employment laws.
Personal identity number
All employees in Sweden must have a personal identity number for taxation, social security, and other administrative purposes. Employers are responsible for ensuring that their employees obtain this number.
Social security taxes
In Sweden, employers must deduct social security contributions from their employees' salaries. These deductions cover healthcare, pension, and unemployment insurance, which are remitted to the Swedish Tax Agency (Skatteverket).
Income taxes
Sweden has a system where the more an employee earns, the higher the taxes they pay. Employers are responsible for taking the right amount of tax from employees' wages and sending it to the tax authorities.
Local labour laws
Employers in Sweden must follow local labour laws, which cover things like minimum wage, working hours, paid leave, job termination, and health and safety. These laws protect employees' rights to fair pay, job security, and safe working conditions.
Please note that employment laws in Sweden vary by job category and individual circumstances and are subject to change.
Why Choose Native Teams as your Sweden Employer of Record?
Native Teams is a trusted partner for businesses and freelancers looking to work in Sweden. With legal entities in over 85+ countries, we help companies hire and manage employees without the need for a local office. For freelancers, we ensure formal employment status, timely payments, tax compliance, and access to benefits like health insurance and pensions.
Whether you're a business expanding into Sweden or a freelancer seeking benefits, Native Teams offers tailored solutions to meet your needs. Our team of experts handles all legal and administrative tasks, allowing you to focus on growth.
``What is an Employer of Record?
An Employer of Record (EOR) is an intermediary that serves as the legal employer for your workers in a specific country, even though they work for you. The EOR takes care of all the legal and administrative responsibilities of employment.
For businesses, an EOR enables you to hire employees in other countries without the need to establish a local office or legal entity. For freelancers, an EOR formalises your employment status, ensuring legal compliance while granting access to benefits like health insurance and pensions.
What are the costs of using an Employer of Record in Sweden?
The costs of using an EOR in Sweden vary depending on the provider, the number of employees, the services required, and the complexity of the work involved.
Native Teams offers cost-effective EOR solutions for businesses and freelancers, providing all necessary services at competitive rates. For businesses, the EOR plan starts at €79 per month per employee, while the Remoter plan for individuals begins at €49 per month.
What is the difference between PEO and EOR?
A Professional Employer Organisation (PEO) and an Employer of Record (EOR) are similar but have key differences. A PEO operates under a co-employment model, where the business retains some legal responsibilities while the PEO manages HR tasks such as payroll and benefits.
In contrast, an EOR acts as the legal employer in the foreign country, taking full responsibility for compliance, taxes, and benefits. This allows the business to focus solely on managing the employee's day-to-day work.
What are the responsibilities of an Employer of Record (EOR) service provider?
An Employer of Record (EOR) takes care of all the legal and administrative tasks related to employment. This includes drafting employment contracts that comply with local laws, managing payroll and ensuring timely payments, and handling taxes and social security contributions.
The EOR also provides access to employee benefits like health insurance and pensions, ensures compliance with local labour laws, and manages HR tasks such as onboarding and offboarding employees.
Is using an Employer of Record in Sweden legal?
Yes, using an Employer of Record (EOR) in Sweden is completely legal. It is a recognised and compliant solution for businesses and freelancers to manage employment in the country.
Why should I use EOR instead of opening my own company or an office in Sweden?
Using an Employer of Record (EOR) instead of opening your own company or office in Sweden is much simpler, faster, and more cost-effective. Setting up a local business involves a lot of time, money, and paperwork, plus you need to understand Swedish labour laws.
With an EOR like Native Teams, you don’t need to worry about the complexities of setting up a legal entity or managing compliance. The EOR takes care of everything for you.
How many people can I employ in Sweden?
There is no limit to how many people you can employ in Sweden through an Employer of Record (EOR) like Native Teams. Whether you want to hire one person or build a large team, we can support your needs. The EOR will manage all the legal and administrative tasks, ensuring compliance with Swedish labour laws for each employee.