Hiring guide in Sweden

Minimum wage

Contributions & taxes

Employer Tax

Total employment cost is 31.42%.

Corporate Tax

Sweden has a corporate tax rate of 20.6%.

Employee Tax

Total employee cost is between 7.00% to 8.03%.

Income Tax

Employee income tax in Sweden is between 0% to 20%.

To calculate the salary and taxes in Sweden please click here.

Payroll cycle

Payroll is typically processed once per month in Sweden. Salary payments from employers must be made on the 25th of every month.

Is there a 13th salary in Sweden?

There is no legal requirement for a 13th-month payment in Sweden.

Labor rules

Probation period rules

The probationary term is limited to 6 months. Probationary periods are flexible and may be terminated early if the employer and employee agree on the terms.

Notice period 

The Swedish Employment Protection Act and the collective bargaining agreement between employers and employees detail the required notice periods.

When there is no collective bargaining agreement in place, the notice period is determined as follows:

• 1 month of notice: Less than two years of service;
• 2 months of notice: Between 2 and 4 years of service;
• 3 months of notice: Between 4 and 6 years of service;
• 4 months of notice: Between 6 and 8 years of service;
• 5 months of notice: Between 8 and 10 years of service;
• 6 months: More than 10 years of service.

Severance pay

No severance payment is required by law, although it may be offered as part of a collective bargaining agreement or employment contract.

Working hours

Monday through Friday, standard business hours are 8:30 or 9:00 am to 5:00 pm.

Leave and benefits

Public holidays

There are 13 official Swedish holidays.

1. New Year’s Day
2. Epiphany
3. Good Friday
4. Easter Sunday
5. Easter Monday
6. Labor Day
7. Ascension Day
8. Whitsunday
9. National Day
10. Midsummer Day
11. All Saints’ Day
12. Christmas Day
13. Boxing Day

Sick leave

In Sweden, employees are entitled to 14 days of paid sick leave from their company before social security begins to pay benefits. Sickness leave is unpaid on the first day.

Maternity leave & paternity leave

Mothers are entitled to 14 weeks of maternity leave, which must be used 7 weeks before and 7 weeks after the baby is born.

Fathers in Sweden are eligible for 10 days of paid paternity leave.

Other leave

Bereavement leave

Each employee is eligible for up to 10 days of paid time off in the event of a death in the immediate family.

Parental leave

Each parent is eligible for 480 days of leave, which can be taken consecutively or separately. Parental leave benefits also allow employees to minimize their hours worked until their child turns 8 years.

What are the minimum vacation days?

After one year of employment, workers are eligible for 25 paid vacation days annually. Once accumulated, vacation time can be carried over for up to 5 years.

Insurance

Health security & private insurance

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits

Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Sweden, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in Sweden?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.