As of March 2024, the estimated population of Sweden is 10,612,086 people.
The currency in Sweden is the Swedish Krona (SEK). The currency symbol is kr.
As per Sweden's Employment Protection Act, employment is usually for an indefinite term except as otherwise agreed. Employment contracts that are valid for an indefinite term can be terminated by the employer or the employee, with effect following a certain notice period. Such contracts can also include a probationary period of 6 months. During probation, contracts can be terminated without notice.
In Sweden, a written employment contract is not necessary. Employment contracts can be written or oral, and are not subject to formal requirements. Employers must provide employees with a written statement of employment particulars within 7 days of work commencement unless the employment lasts less than 3 weeks. The information must contain the following particulars: Names and addresses of both parties, employment start date Job description, occupational designation, or title Fixed or indefinite term of the employment or the applicable probationary period Pay rate, benefits, and payment schedule Length of annual leave and the normal working day or working week Collective bargaining agreement, where applicable and relevant A non-compete clause in an employment contract must be in writing. The restriction must be reasonable in terms of location and time.
Employees are allowed to hire temporary employees through a temporary staffing agency. A temporary work agency must guarantee the employees the same basic working and employment conditions as those directly employed by the user undertaking the same job. The agency cannot prohibit a temporary worker from accepting a direct employment offer made by a user undertaking. The user undertaking must provide temporary workers access to collective facilities and amenities under the same conditions as directly employed workers. Company clients of a temporary work agency must offer permanent employment or 2 months' salary to employees placed with it if the employee has worked for the client company for more than 24 months in 36 months. The client company must offer permanent employment or 2 months' compensation within 1 month after the 24 months is reached. The Employment Protection Act also allows a temporary substitute employment contract, a fixed-term contract concluded to substitute an absent employee.
Probationary periods cannot be longer than 6 months. An employer who intends to end a probationary employment early or prevent it from continuing into indefinite employment must notify the employee at least 2 weeks in advance. An employer may decide not to offer indefinite-term employment to a worker on probation. In this case, during the probationary period, the employer must provide the employee with at least 2 weeks' notice of the intention not to continue employment on the probation's expiry. In the absence of such notice, upon expiry of the probation period, employment will be for an indefinite term.
In Sweden, the normal working hours of full-time employees are 40 hours per week. If, due to the nature of the activity, an employee must be at the workplace waiting to carry out work as needed, the employee may claim on-call time to a maximum of 48 hours over four weeks or 50 hours per calendar month. While Sweden does not have a specific legislation regarding remote working in place, the Work Environment Act states that employers are responsible for an employee's work environment even if they are working from home. Employers must do everything necessary to prevent the employee from being exposed to ill health or accidents. In addition to the statutory breaks, employees must be able to take shorter breaks that count towards working time. Employers must maintain records concerning on-call time, overtime, and additional time in Sweden. Such records must be kept at the workplace during the calendar year to which they relate, and the two following calendar years.
2026
2027
Employees are entitled to 25 days of paid annual leave per year, starting from the first year of employment. A worker may carry over 5 days of annual leave per year for up to 5 years to take a longer holiday in a given year. Saturdays, Sundays, and public holidays are not counted towards annual leave days unless the employee usually works on weekends and leave is shorter than 5 days. Annual leave pay depends on how an employee is compensated. The same-pay rule applies with certain exceptions for employees paid weekly or monthly. The holiday supplement for weekly-paid employees is 1.82% of weekly pay. The holiday supplement for monthly-paid employees is 0.43% of monthly pay. If the employee has variable pay components, the holiday pay is 12% of the employee's aggregate variable pay that fell due during the annual leave year.
Employees absent from work due to sickness are entitled to sick pay for the first 14 days of sickness except for the first day, known as the "waiting day." The employer is required by law to pay sick pay to the employees during days 2 to 14 of illness. After 2 weeks, employees can apply for sickness benefits from the Swedish Social Insurance Agency (Försäkringskassan). The maximum benefit is SEK 1,259 (Swedish krona) per day. If an employee is on sick leave for more than a year, their benefits are reduced to 75% of the income. In case of serious illness, benefits continue to be 80% of the income. It is possible to be on part-time sick leave if the ability to work is only partially reduced. Effective March 1, 2026, Sweden introduced a work trial measure that allows employees on full sick leave to test their capacity to return to work, with no normal productivity expectations. There can be up to 2 trials within 12 months, each lasting a maximum of 14 consecutive days. Trials can be stopped if health conditions do not permit continuation. Trials are voluntary, and arranged as per an agreement between the employee and the employer. They must notify the Swedish Social Insurance Agency before the work trial begins.
Female employees are entitled to full leave in connection with their child's birth during a continuous period of at least 7 weeks before the estimated time for delivery and seven weeks after the delivery. An employer is not under an obligation to pay employees during maternity leave, in which case the Swedish Social Insurance Agency covers maternity benefits. Benefits are paid as 80% of income, up to a maximum of SEK 944 (Swedish krona) per day, up to the eleventh day before the expected delivery date. Employees can also request to start the benefits 60 days before their estimated delivery date if they cannot carry out the job and cannot be transferred to any other job. If the employer has banned an employee from continuing work due to risks in the work environment, she can receive pregnancy benefits from the day the ban applies. Both parents may receive parental benefit payments simultaneously for 60 days for the same child within 15 months of the birth or equivalent date. Parents may also transfer certain parental leave benefits to a family member, friend, or other caretaker who is insured for the benefit.
In Sweden, the non-pregnant partner can take a temporary leave of ten working days in connection with childbirth or adoption of a child under 10 years of age. The leave is doubled for twins and tripled for three kids, and so on. This leave can be used anytime during the first 90 days after childbirth or placement. Paternity leave is paid at 80% of the income. Payments come from the Swedish Social Insurance Agency. Employees can also reduce their working hours, claim compensation for 25%, 50%, or 75% of their regular working hours, and increase the leave duration from 10 to 20 days. Both parents may receive parental benefit payments simultaneously for 60 days for the same child within 15 months of the birth or equivalent date. Parents may also transfer certain parental leave benefits to a family member, friend, or other caretaker who is insured for the benefit.
The notice period for indefinite-term employees is calculated as follows: 0-2 years of employment: 1 month's notice 2-4 years of employment: 2 months' notice 4-6 years of employment: 3 months' notice 6-8 years of employment: 4 months' notice 8-10 years of employment: 5 months' notice More than 10 years of employment: 6 months' notice The notice must be given in writing, given personally to the employee, and contain certain formalities (particularly, the reason for termination and how the employee should proceed if they wish to challenge the termination). In the case of fixed-term employment contracts, when the contract of an employee employed for at least 12 months in the last 3 years ends and will not be renewed, the employer must provide at least 1 month's notice before the contract's expiry.
Sweden has no statutory severance pay requirements for employers. Severance pay is usually stipulated in individual employment contracts and collective agreements. The collective bargaining foundation, TRR Trygghetsrådet, assists employees whose employment has been terminated due to a shortage of work or illness. AGE provides 70% of the previous salary, including compensation from the unemployment insurance fund. Depending on the employee's age, AGE is payable 6 to 18 months after cessation of employment.
According to the Social Insurance Law of Sweden, the standard retirement age is 67, regardless of gender, for the years 2026 to 2031. Sweden has introduced a target age for retirement, adjusted according to life expectancy depending on the year of birth. Under this system, pensions can be withdrawn no earlier than 3 years before their target age. Sweden has 3 pension types available for retirees: general, supplementary, and guaranteed pension. The general pension is an earnings-based pension model financed by contributions from employees or self-employed persons. A minimum pensionable income of 3 years is required to be eligible. The amount of the earnings-based pension is calculated by dividing the money in the employee's pension account at the time of retirement by the number of years a person of that age can be presumed to have survived. Supplementary pension is available to people born in 1953 or earlier as a part of their general pension, calculated on the price base amount applicable for the year. The guaranteed pension depends on residence in Sweden and does not differentiate between employees and self-employed individuals. The amount of guaranteed pension is 2.13 times the price base amount for a single person and 1.90 times the base amount for a married person.
According to the laws of Sweden, relatives of a deceased insured person are entitled to social insurance benefits payable as a transitional pension, orphan's pension, and widow(er) pension. A transitional pension is paid for 12 months after the death. The period can be extended for an additional 12 months if a survivor has custody of a child under 18 or continues until the youngest child attains 12 years of age. The orphan's pension ranges between 30-35%, depending on the child's age (12-18 years). If there is more than 1 orphan, the pension ranges between 20-25%. The transitional pension is 55% of the deceased's accrued pension rights.
Insured employees are entitled to sickness benefits for temporary disability: 80% of the insured person's lost earnings will be paid from day 15 until day 364 in a 450-day period. The period is extendable to 550 days, in which case 75% of the insured person's lost earnings will be paid. Employers pay a sickness benefit during the first 14 days (except for the first day, which is considered a "waiting period"). Employees are eligible for Additional Cost Allowance if they fulfill certain conditions and have additional expenses due to a disability that can be presumed to last at least a year. Additional expenses include costs beyond the costs common for people of the same age who do not have a disability and one-off expenses related to healthcare and diet, wear and cleaning, help in day-to-day life, assistive devices, and other purposes. The benefits are calculated depending on the employee's total additional expenses approved by the Social Insurance Institute.
An individual who is considered an unlimited tax resident is taxed on worldwide income, while a limited tax resident is liable to pay taxes only on income sourced in Sweden. On the other hand, Swedish citizens and foreigners who have been residents for at least ten years are deemed residents for income tax purposes until they can prove that all important ties with Sweden have been broken. Business income and residents' employment income are subject to both municipal income tax and national income tax. The present average municipal rate is 32.38%. National income tax is levied at a rate of 20% on the portion of earned income exceeding SEK 643,000 from January 1, 2026. The employment income of non-residents is taxed at a flat rate of 22.5% from January 1, 2026, reducing to 20% from January 1, 2027. A Swedish company and its foreign branch are treated as a single legal employer for tax purposes. Employees sent to Sweden by a foreign branch of a Swedish company are taxed as non-residents under these rates.
To visit Sweden, individuals must have a Schengen Visa unless they are nationals of the UK, Australia, Canada, and the United States. This visa allows an individual to stay in Sweden for up to 90 days. Those who wish to stay longer than 3 months require a visitor's residence permit.
A Schengen Visa may be granted for the following purposes:
EU citizens don't need a permit to visit, work, or live in Sweden. EU nationals may stay for an unlimited period but must register with the local authorities if staying longer than three months.
Citizens of countries outside the EU must have a work permit to work in Sweden. To obtain such a permit, a person must have a job offer from an employer in Sweden. The employer must have prepared the offer of employment and advertised the job in Sweden and the EU for at least 10 days (this applies to new recruitment). From June 14, 2026, the work permit salary requirement is at least 90% of the Swedish median wage, meaning SEK 34,470 per month. Certain roles are exempt from 90% median wage requirement, for example, engineers and technicians in the chemical industry, IT operations technicians, IT support technicians, system administrators, network and system technicians, whose salary must be at least 75% of the median salary. The terms of employment must be at least on par with those set by Swedish collective agreements or those customary within the occupation or industry. A work permit is valid for up to 1 year and is renewable. The entry visa (D-visa) allows a person who has applied for an extension to their residence permit to go on a business trip outside Sweden during the processing time. Third-country nationals who wish to work as highly qualified workers in Sweden for a period of more than 3 months can apply for an 'EU Blue Card.' EU Blue Card is a combined work and residence permit designed for highly qualified non-EU nationals. It is valid for 9 months to 4 years when issued for the first time. They must have higher education or at least 5 years of experience, have an employment contract of at least 6 months for highly qualified work, and be offered an annual salary at least 1.25 times (SEK 52,000 per month) the average Swedish salary. They must be able to prove the qualifications required for the job. EU and EEA citizens do not require visas and may work in Sweden without work and residence permits. However, if they want to stay longer than 3 months, they must register with the Swedish Migration Board.
Sweden has a favorable business environment with access to a solid economy and a skilled workforce. However, recruiting workers in Sweden can be challenging, with complicated labor laws, taxation systems, and cultural customs. It can be costly and takes considerable time to establish a legal presence, further complicating entry to the market.
At Engage Anywhere, we simplify global hiring with our EOR Sweden solutions. So that companies can employ staff in Sweden without a local presence. We manage payroll services in Sweden, HR administration, compliance, and taxation, ensuring your workforce operates smoothly and in full alignment with Swedish employment laws.
Sweden boasts progressive labor legislation, worker-friendly policies, and a robust social security network. Employing workers in Sweden demands a solid grasp of its regulatory environment. Engage Anywhere guarantees total compliance through our Sweden Employer of Record solutions that enable your business to focus on growth while we handle all legal complexities.
Reasons To Use an Employer of Record (EOR) in Sweden
With Engage Anywhere’s EOR service providers in Sweden, businesses can expand seamlessly without the hassle of legal entity formation. Here’s how we make it easier:
Hiring employees in Sweden requires adherence to strict legal and administrative obligations. Engage Anywhere ensures full compliance through our EOR Sweden solutions.
Employment agreements in Sweden must comply with labor laws and should include the following:
Employers in Sweden must register with the Swedish Tax Agency (Skatteverket) for taxation and payroll deductions. Key tax components include:
Engage Anywhere’s Sweden payroll services handle all these obligations seamlessly.
Businesses must comply with Sweden’s labor laws, covering:
When hiring foreign employees, compliance with immigration laws is essential. Engage Anywhere simplifies the process through our EOR service providers in the Swedish network. Common permits include:
Engage Anywhere facilitates work permit applications, ensuring seamless hiring for international talent.
Managing payroll in Sweden requires:
We ensure complete accuracy and compliance through our Sweden payroll services platform.
Sweden’s strong labor laws protect employees’ rights, including:
The Swedish labor law provides generous leave benefits, including:
Employers often conduct background checks, such as:
Termination must comply with Sweden’s Employment Protection Act (LAS). Key considerations:
Understanding Swedish workplace culture is essential for smooth business operations:
Providing competitive benefits is essential for attracting top talent. Standard benefits include:
Entering Sweden offers great business prospects, but it can be complicated to deal with intricate labor laws, taxation, and payroll. With Engage Anywhere’s EOR Sweden solutions, you can hire effortlessly while we manage compliance, HR, and payroll services in Sweden.
By engaging with Engage Anywhere, you avoid entity setup and get completely compliant employment solutions so your business can flourish in Sweden’s competitive marketplace.
Begin recruiting in Sweden today with Engage Anywhere – your trusted Sweden Employer of Record partner and discover new ways to drive business success.
An EOR is a service provider that manages payroll, compliance, HR, and tax administration on behalf of companies expanding into new markets.
No, Engage Anywhere allows companies to hire employees in Sweden without setting up a local entity.
Employers in Sweden must contribute 31.42% of an employee’s salary towards social security and withhold income tax at source.
Yes, Engage Anywhere assists in obtaining work permits, managing immigration compliance, and ensuring the legal employment of foreign workers in Sweden.
Begin recruiting in Sweden today with Engage Anywhere and discover new ways to drive business success.
