How to hire and pay employees in Sweden
With Instahirin, your business can easily hire employees in Sweden. No more worrying about local laws, complex tax systems, or managing international payroll.
Before hiring
EMPLOYEES IN Sweden
Before hiring employees in Sweden, one key thing employers should be aware of is the country’s robust data protection laws under the GDPR. Employers must ensure that employee personal data is handled with strict confidentiality and care, especially when transferring data outside the EU. Failing to comply can result in significant penalties, so it's vital to be well-informed before making cross-border hires.
Another important consideration is Sweden’s progressive labor laws and generous employee benefits. Employers are expected to contribute to public health insurance, pensions, and parental leave programs. Swedish employees are entitled to at least 25 days of paid vacation, strong sick leave benefits, and collective agreements often set higher standards for wages, working hours, and job security. Employer obligations also include paying social security contributions and offering a safe, inclusive work environment.
At a glance
CURRENCY
Swedish Krona (SEK)
OFFICIAL LANGUAGE
Swedish
PAYROLL FREQUENCY
Monthly
EMPLOYER TAXES
31.42%
of gross salary
13th / 14th SALARY
N/A
Good to know
Sweden has a universal public healthcare system, funded through taxes. Healthcare is heavily subsidized, with low out-of-pocket costs for doctor visits and hospital stays. Employers may offer private health insurance to provide faster access to specialist care or additional services.
The standard workweek in Sweden is 40 hours, with a maximum of 48 hours per week (including overtime), averaged over 4 months. Overtime is regulated and typically compensated with extra pay or time off. Workers are entitled to rest breaks, at least 11 hours of rest per day, and 5 weeks of paid vacation annually.
Labor laws in Sweden
Working hours and overtime
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday. Overtime payment is not mandatory and may be included in the salary. If specified in an employment agreement, hours outside of standard work hours can be considered overtime. Employees can work a maximum of 50 hours of overtime per month and a maximum of 150 hours per year. For additional hours, employees are paid an hourly rate of 168% of the hourly rate.
Employment contracts
In Sweden, employers must notify employees, in writing, of the employment relationship’s essential particulars. The following terms must be provided to employees within a week of their starting date:
- Names and addresses of the employer and employee
- Employment start date
- Place of work
- Employment contract’s duration
- Job title and description of work
- Payment information
- Ordinary working hours and days
- Overtime hours and pay
Probationary period
In Sweden, the probationary period (provanställning) can last up to 6 months and is used to evaluate the employee's suitability for the role. If not terminated during this time, the employment automatically becomes permanent.
Calculate costs to hire internationally
Benefits and leave in Sweden
Annual leave in Sweden
Swedish labor law guarantees employees annual paid leave of 25 days after completing 12 months of service. Employees receive vacation pay of 12 percent of their annual salary.
Sick leave
The Swedish labor code provides that every employee is entitled to 14 days of sick leave with 80 percent pay from the employer. If an employee’s illness goes beyond 14 days, they can apply for a sickness benefit from the social insurance system, Försäkringskassan.
If an employee is ill for more than seven days, they must provide a medical certificate for verification of the illness by a doctor.
Parental leave
In Sweden, parental leave encompasses maternity, paternity, adoption, and carer’s leave. Parental leave for one child is 480 days for both parents or 240 days for a single parent.
The parental benefit payment is based on an employee’s income for the first 390 days. For the remaining 90 days, the parental benefit pay is set at SEK 180 daily.
Holidays
Sweden has 13 public holidays in a calendar year, which are not included in the minimum paid leave entitlement. Employees take public holidays in addition to annual leave.
Employer tax
In Sweden, employers typically contribute about 31.42% of an employee’s gross salary to social security, covering pensions, health insurance, unemployment insurance, and other welfare benefits, with rates consistent across industries.
Individual tax
In Sweden, individuals pay progressive income tax ranging from approximately 32% to 57%, including municipal taxes (around 32%) and a national income tax of 20% to 25% on higher incomes, with social security contributions mostly paid by employers.
Termination in Sweden
For employers in Sweden, the notice period for termination of the employment relationship is a minimum of at least one month. The notice period gradually increases to six months, depending on the employee’s length of service.
Notice periods have the ability to be waived in collective agreements but not in individual employment agreements. Notice periods from employers can legally be longer than six months in individual employment agreements.
Notice period
For employees in Sweden, the notice period for termination of the employment relationship is one month. However, it can be changed in an individual employment agreement or collective agreement.
Start hiring employees in
Sweden
Setting up a business entity in every country where you want to hire isn’t scalable—it takes too much time and legal fees can be high. In Sweden, navigating labor laws, collective agreements, social security contributions, and tax regulations can be complex and overwhelming. Managing contracts, payroll, and compliance manually through emails and spreadsheets often leads to mistakes and inefficiencies.
With InstaHirin, you can easily manage HR, payroll, and automate compliance in Sweden and 180+ countries all from one user-friendly platform so you can hire quickly and confidently without setting up a local entity.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While InstaHirin yster strives to provide current and accurate information, InstaHirin makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
