What should I know about hiring in Sweden?
If you are unfamiliar with the local laws and regulations, hiring employees in Sweden may be challenging. That’s why understanding the fundamentals of employment in Sweden is crucial. To begin, you must have a working knowledge of Swedish labor law.
All aspects of employment, including hiring, working hours, pay, benefits, termination, and severance. Knowing these rules will help you avoid trouble with the law and guarantee that you’re treating your employees fairly.
In addition, as an employer, you must set aside money to cover your employees’ share of taxes and benefits like social security. Last but not least, it’s smart to implement a thorough onboarding strategy that includes providing staff with contracts, regulations, and health and safety requirements.
Why is Sweden a good choice for finding remote employees?
Sweden has an excellent remote workforce because of its highly qualified and motivated remote workforce and its emphasis on technology and work-life balance.
The Swedish work-life balance culture is well-known for its many positive aspects, including flexible work hours and generous parental leave legislation. In other words, remote workers in Sweden will likely be highly motivated and committed to their profession.
In addition, Sweden is a great place to recruit remote workers because of its highly qualified and motivated remote workforce, dedication to technology, and emphasis on work-life balance.
How can Native Teams help you hire in Sweden
Finding the most qualified applicants in Sweden can be difficult if you are unfamiliar with the local job market. Native Teams’ employer-of-record services cover everything from employing new workers to paying their wages and providing them with benefits in accordance with Swedish law.
Hire your first Swedish employee with Native Teams.
Legal requirements for hiring in Sweden
In Sweden, there is no legally mandated minimum wage.
Contributions & taxes
Total employment cost is 31.42%.
Sweden has a corporate tax rate of 20.6%.
Total employee cost is between 7.00% to 8.03%.
Employee income tax in Sweden is between 0% to 20%.
To calculate the salary and taxes in Sweden please click here.
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.
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.
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.
No severance payment is required by law, although it may be offered as part of a collective bargaining agreement or employment contract.
Monday through Friday, standard business hours are 8:30 or 9:00 am to 5:00 pm.
Leave and benefits
There are 13 official Swedish holidays.
- New Year’s Day
- Good Friday
- Easter Sunday
- Easter Monday
- Labor Day
- Ascension Day
- National Day
- Midsummer Day
- All Saints’ Day
- Christmas Day
- Boxing Day
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.
Each employee is eligible for up to 10 days of paid time off in the event of a death in the immediate family.
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.
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.*
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?
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.