Overview

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

calendar icon Public holidays calendar

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.

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.

VAT

General

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

Payment

Payroll Frequency

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

Mandatory Benefits

Pension Fund

Employer contributes 10.21%. Employee contributes 7% with salary ceiling of SEK 504,375.

Social Security

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

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.

Advance Notice

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.