Overview

Capital
Stockholm
Currency
Swedish Krona (SEK)
Date Format
yyyy/mm/dd

Taxes

Employer

Employer Payroll Tax

3.55%
Health Insurance
2.60%
Parental Insurance
10.21%
Retirement Pension
0.60%
Survivors Pension
2.65%
Labor Market Fee
0.20%
Occupational Injury
11.62%
General Payroll Tax
(10.21% total contribution for employees born between 1938-1955 and 2003–2005)
31.42% Total Employment Cost
Employee

Employee Payroll Taxes

7.00%
Pension Insurance
7.00%

Employee Income Tax

0.00%
Up to 519,400 SEK
20.00%
Above 519,400 SEK
Employer Taxes
3 HIGHEST
3 LOWEST
China
Brazil
Belarus
Sweden
South Africa
Georgia
Macedonia
41.12%
36.8%
34%
31.42%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Sweden
Georgia
Belarus
Ukraine
45%
28%
27.65%
7%
2%
1%
0%

Minimum Wage

General

There is no official national minimum wage. Minimums are determined through collective bargaining agreements through trade unions.

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.

Leave

Paid Time Off

Employees are entitled to 25 days of paid vacation each year after one year of work at the company. Once accrued, vacation days can be held for up to five years.

Vacation pay accounts for 12% of an employees gross annual salary.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
Sweden
Malaysia
China
Federal
30
13
43
30
12
42
24
17
41
25
13
38
8
6
14
5
7
12
10
10
Public Holidays

There are 13 public holidays in Sweden.

Sick Days

An employer is responsible for paying 80% of an employee’s salary for the first 14 days of sick leave.

After 14 days employers report to Swedish Social Insurance Office, and the employee applies for the benefits. Social insurance pays for sick leave starts on day fifteen.

Maternity Leave

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

PAID MATERNITY LEAVE (DAYS)
410
365
365
240
45
30
0
Bulgaria
Serbia
Albania
Sweden
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
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.

Other Leave

Bereavement Leave – 10 days.

Termination

Termination Process

The employer must have a valid reason to terminate an employee.

Before termination, an employer must try to find the employee a different role in the company before terminating the employee.

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 must provide a termination notice in writing and in person. If this is not possible then a registered letter may be sent to the employee’s 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 but it may 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.

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    Questions & Answers

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    T. Davis
    T. Davis
    3 months ago

    In a dismissal, is it lawful to give an employee compensation instead of a notice period?

    Alex Margolin
    Admin
    3 months ago
    Reply to  T. Davis

    The Employment Protection Act (EPA) applies, including the length of notice in a termination, which ranges from one month for an employee at the company up to two years, to six months for someone with 10 years of service. However, it is possible to come to a mutual agreement where the employee accepts compensation instead of the notice period. The choice belongs to the employee.

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