Hire in Sweden

Sweden is located in Northern Europe bordering the Baltic Sea, Gulf of Bothnia, Kattegat, and Skagerrak. Neighboring countries include Finland and Norway. It is a Scandinavian nation with thousands of coastal islands and inland lakes, along with vast boreal forests and glaciated mountains. Its principal cities, the eastern capital Stockholm and southwestern Gothenburg and Malmö, are all coastal. With an area of 450,295 square kilometers, Sweden is the largest country in Northern Europe. 

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Sweden.

Onboard your talent in Sweden

in 10 minutes

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Accelerated onboarding

Fast-track your talent onboarding while ensuring 100% compliance with local regulations.

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Net salary calculator

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Guidance & payroll management

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Hire in Sweden through an

EOR

Easily onboard your remote talent in Sweden through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Sweden

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Cost of living index

$$$$ (23 of 139 nations)

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Currency

Swedish krona (kr, SEK)

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Payroll frequency

Monthly

Basic facts

Sweden is located in Northern Europe bordering the Baltic Sea, Gulf of Bothnia, Kattegat, and Skagerrak. Neighboring countries include Finland and Norway. It is a Scandinavian nation with thousands of coastal islands and inland lakes, along with vast boreal forests and glaciated mountains. Its principal cities, the eastern capital Stockholm and southwestern Gothenburg and Malmö, are all coastal. With an area of 450,295 square kilometers, Sweden is the largest country in Northern Europe. 

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Sweden.

Capital

Stockholm

Official language/s

Swedish

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Population

10.53 million (2023 est.)

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VAT - standard rate

25%

The national holidays mentioned below are valid for the year 2025.

January 1New Year's Day
January 6Epiphany
April 18Good FridayMovable
April 20Easter SundayMovable
April 21Easter MondayMovable
May 1May Day
May 29Ascension DayMovable
June 6National Day of Sweden
June 8Whit Sunday Movable
June 21Midsummer's DayMovable
November 1All Saints' DayMovable
December 25Christmas Day
December 262nd Day of Christmas

The approximate time for sharing the contract with an employee in Sweden is 2 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • New employees negotiate their own starting salary. There is no statutory minimum wage.
  • There are no legal provisions for severance pay in Sweden unless specified in a collective agreement or employment contract.
  • Sweden’s employment law allows employees to take six months of unpaid leave to look for another job or to start a business, whilst retaining their right of employment in their jobs. Violation of this law by employers attracts damage fees.

Mandatory employer’s social security contributions amount to 31.42% of gross salary, while employee social security contributions amount to 7%. The contributions are used to fund benefits such as an old-age pension, survivor’s pension, health insurance, occupational injury insurance, parental insurance, and unemployment insurance and also include a general payroll fee. Foreign employers who do not have a permanent establishment (PE) in Sweden must register for the payment of social security contributions.

Benefits

Employer Contribution

Employee Contribution

Old-age pension contributions

10.21%

7%

Survivor’s pension contribution

0.60%

Health insurance fees

3.55%

Occupational injury fee

0.20%

Parental insurance fees

2.60%

Labor market levy

2.64%

General payroll tax

11.62%

Total

31.42%

7%

Working Hours

Normal working hours in Sweden are a maximum of 40 hours a week. Monday is considered to be the first day of the week unless another arrangement is in place at the workplace. The contract of employment should give details of the working hours.

 

Overtime

Overtime is limited to 48 hours over a four-week period or 50 hours over a period of one month. Total overtime may not exceed 200 hours in any 12-month period.

Overtime in excess of general overtime may be worked up to a maximum of 150 hours per employee over a calendar year if there are special grounds for doing so and no other reasonable solution has been possible (extra overtime).

 

Probation Period

A contract for probationary employment of limited duration may also be entered into, provided that the probationary period does not exceed six months. 

 

Termination Notice Period

Resignation

An employee who wishes to resign must give at least one month’s notice, although notice periods may be longer than this depending on any applicable collective agreement.

Termination by the Employer

The notice period for collective (and other) dismissals is presented in the table below.

 

Tenure Notice Period
During probation 2 weeks
Less than 2 years  1 month
2 to 4 years 2 months
4 to 6 years 3 months
6 to 8 years 4 months
8 to 10 years 5 months
Longer than 10 years 6 months
Working Hours

Normal working hours in Sweden are a maximum of 40 hours a week. Monday is considered to be the first day of the week unless another arrangement is in place at the workplace. The contract of employment should give details of the working hours.

 

Overtime

Overtime is limited to 48 hours over a four-week period or 50 hours over a period of one month. Total overtime may not exceed 200 hours in any 12-month period.

Overtime in excess of general overtime may be worked up to a maximum of 150 hours per employee over a calendar year if there are special grounds for doing so and no other reasonable solution has been possible (extra overtime).

 

Probation Period

A contract for probationary employment of limited duration may also be entered into, provided that the probationary period does not exceed six months. 

 

Termination Notice Period

Resignation

An employee who wishes to resign must give at least one month’s notice, although notice periods may be longer than this depending on any applicable collective agreement.

Termination by the Employer

The notice period for collective (and other) dismissals is presented in the table below.

 

Tenure Notice Period
During probation 2 weeks
Less than 2 years  1 month
2 to 4 years 2 months
4 to 6 years 3 months
6 to 8 years 4 months
8 to 10 years 5 months
Longer than 10 years 6 months

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Mandatory employer’s social security contributions amount to 31.42% of gross salary, while employee social security contributions amount to 7%. The contributions are used to fund benefits such as an old-age pension, survivor’s pension, health insurance, occupational injury insurance, parental insurance, and unemployment insurance and also include a general payroll fee. Foreign employers who do not have a permanent establishment (PE) in Sweden must register for the payment of social security contributions.

Benefits

Employer Contribution

Employee Contribution

Old-age pension contributions

10.21%

7%

Survivor’s pension contribution

0.60%

Health insurance fees

3.55%

Occupational injury fee

0.20%

Parental insurance fees

2.60%

Labor market levy

2.64%

General payroll tax

11.62%

Total

31.42%

7%