Overview

Capital
Stockholm
Currency
Swedish Krona
Date Format
yyyy-mm-dd

Taxes

Employer
10.21% - Pension Insurance
4.35% - Health Insurance
2.64% - Unemployment Insurance
0.70% - Surviving Dependents Pension Insurance
2.60% - Surviving Dependents Pension Insurance
0.20% - Workplace Accident Insurance
10.72% - General Salary Tax
Employee
7.00% - Pension Insurance
0.00% - Up to 455,200
20.00% - 455,200 - 662,200
25.00% - Over 662,200

Minimum Wage

General

No official minimum wage.

Payroll

Payroll Cycle

Salaries are paid on monthly basis on the 25th of each month.

Working Hours

General

Full time employment is consdered 40 hours weekly. Workers are entitled a break after 5 consecutive hours of work, and an 11 hour break for every 24 hour period.

Overtime

Overtime should not exceed 48 hours over a four-week period, 50 hours per month, or 200 annual hours. Overtime rules should be in a collective agreement or employee contract, and typically compensated with pay or leave. For overtime worked before 8pm on weekdays, overtime allowance is the monthly salary divided into 94 for each hour. For overtime worked after 8pm or weekends allowance is the monthly salary divided into 72 for each hour. Employees who are excluded from overtime pay include, employees who hold managerial or comparable positions, those who organize their own working time.

Payroll Contributions

Social Security

Employer: contribute 31.22% of workers wages toward retirement insurance, health insurance, unemployment, survivor insurance, parenthood insurance and occupational accident insurance.

Pension Fund

Employer: contributes 10.21%.

Employee: contributes 7% with salary ceiling of SEK 504,375.

Leave

Maternity Leave

Mothers recieve 240 days of paid leave with the right to start 60 days before the expected birth.

Paternity Leave

Fathers are entitled to 240 days of paid leave.

Parental Leave

Swedish parents are entitled to 480 days of paid parental leave with each parent having an exclusive right to 90 of those days. Leave shouldn’t be taken at the same time, except for the first 10 days following the birth. Single parents are given the full 480 days.

Termination

Termination Process

To employer must have enough reasons to terminate an employee. Before termination, an employer must also attempt to reposition the employee or find them another job. If relocation of an employee fails, then they may be terminated. For companies with more than five employees, employers are obligated to notify the Employment Service. Companies are also obligated to negotiate with trade unions if relevant. After negotiations the employer may provide a notice. Notices must be provided in writing and in person. If this it not possible then a registered letter may be sent to the employees address.

Notice Period

Notice periods in Sweden are determined by employment contracts, collective agreements, or by the Employment Protection Act.

Employers:

With a collective agreement - Notice periods should be agreed upon between employer and employee and stated in the employment contract. The most common notice period is one month.

Without a collective agreement - 

  • Less than 2 years - 1 month
  • 2 years but less than 4 years -2 months
  • 4 years but less than 6 years - 3 months
  • 6 years but less than 8 years - 4 months
  • 8 years but less than 10 years - 5 months
  • 10 years or more - 6 months

Employers may dismiss employees without notice if they have grossly misbehaved.

Employees:

With a collective agreement - Notice periods should be agreed upon between employer and employee and stated in the employment contract. The most common notice period is one month.

Without a collective agreement - According to the Employment Protection act notice period is one month.

Severance Pay

Companies have no obligation to pay any severance pay butitmay be included in an employment agreement.

VAT

General

VAT is 25% standard rate. A reduced rate of 12% or 6% might apply for some goods.