Employer of Record (EOR) in
Sweden
Ready to hire in Sweden?
Hiring in Sweden opens the door to great talent, but only if you get compliance right. Learn the essentials of employment law, payroll taxes, termination rules, and more, and see how an Employer of Record (EOR) in Sweden can help you hire quickly without the legal risk.
Language(s)
Currency
Capital
Stockholm
Population
10.6 M
Public holidays
13
VAT
25%
Employment contract types in Sweden
Choosing the right employment contract in Sweden affects everything from probation periods to termination rights. Learn which contract types are available, when each one applies, and how an Employer of Record (EOR) in Sweden can make sure every agreement meets local requirements.
DEFAULT
Indefinite contract
The default and most common form of employment in Sweden is the indefinite (permanent) contract, tillsvidareanställning. Under the Employment Protection Act (LAS), employment is presumed indefinite unless a fixed term is explicitly and validly agreed. Termination of an indefinite contract by the employer requires objective grounds (saklig grund) — either redundancy (arbetsbrist) or personal grounds (personliga skäl) — and adherence to statutory notice periods and, where applicable, seniority (turordning) rules.
REGULATED USE
Fixed-term contract
Fixed-term contracts (allmän visstidsanställning) are permitted for any reason without needing to state objective grounds. However, if an employee has been employed on one or more fixed-term contracts for a total of more than 12 months within a 5-year period, the contract automatically converts to an indefinite (permanent) contract. Fixed-term contracts generally end automatically on the agreed end date without requiring notice, unless otherwise agreed or required by CBA.
Employment basics in Sweden
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Sweden to stay compliant from day one.
The Working Hours Act (Arbetstidslagen) sets ordinary working time at a maximum of 40 hours per week, typically 8 hours/day. Overtime is capped at roughly 48 hours over any 4-week period (or 50 hours in a calendar month), with a general annual overtime limit of 200 hours (of which 150 hours is 'ordinary' overtime that can be used without special justification). Many terms, including reduced hours and overtime premiums, are commonly set or modified by sector collective bargaining agreements.
PROBATION PERIOD
6 months max
A probationary employment (provanställning) may last a maximum of 6 months under LAS. During this period, either party may terminate the employment without needing to show objective grounds, subject to a short notice period (commonly around 2 weeks, or as set by contract/CBA). If neither party ends the employment by the end of the probation period, it automatically converts into an indefinite contract.
13TH / 14TH SALARY
Not Required
Sweden does not mandate a 13th or 14th month salary. Instead, employees receive a statutory holiday pay supplement (semestertillägg) during their annual leave — an addition of at least 0.43% of monthly salary per paid vacation day (broadly equivalent to an extra ~12% of a month's pay spread over the leave period) under the Annual Leave Act.
JOB TITLE REGULATIONS
Regulated
There is no general statutory regulation of job titles in the Swedish private sector, and employers have broad discretion in defining roles. Certain regulated professions (e.g., medicine, law, some engineering and financial roles) require specific licensing or registration with the relevant authority, but this governs professional qualification rather than job-title wording itself.
Taxes & employment costs in Sweden
The true cost of hiring in Sweden goes well beyond salary. Learn how payroll taxes, employer social security contributions, and mandatory benefits add up.
Total statutory employer social contributions (arbetsgivaravgifter) are 31.42% of gross salary, made up of: sickness insurance 3.55%, parental insurance 2.60%, old-age pension 10.21%, survivors' pension 0.60%, labour market fee 2.64%, work injury (occupational accident) insurance 0.20%, and a general payroll tax 11.62%. There is no salary ceiling on these contributions. A reduced rate (pension contribution only, 10.21%) applies to employees who have reached state pension age (67 in 2026). Many employers also pay into collectively agreed occupational pension and insurance schemes (e.g., ITP, SAF-LO) on top of the statutory rate.
Employees pay a general pension contribution (allmän pensionsavgift) of 7% of gross salary up to an income ceiling. In practice this is fully offset by a matching tax credit against income tax, resulting in near-zero net cost to the employee. Employees additionally pay progressive municipal income tax (around 32% on average, varying by municipality) and a national income tax of 20% on income above the annual threshold (approximately SEK 643,000 in 2026), all withheld by the employer under the PAYE system.
Tax and social security rates are set and periodically revised by Swedish authorities (including Skatteverket and Försäkringskassan) and can vary by municipality, collective agreement, and individual circumstances. This summary is provided for general informational purposes only and should not be relied upon as tax, legal, or financial advice. Employers and employees should consult Skatteverket or a qualified local advisor for current, case-specific figures.
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Calculate your EOR costsLeave entitlements in Sweden
Here’s what you need to know about leave entitlements in Sweden, including annual leave, public holidays, sick leave, parental leave, and more. Many companies choose to work with an Employer of Record in Sweden to stay compliant from day one.
Type
Duration
Pay During Leave
Annual leave
100% (+ ~12% holiday supplement)
Maternity leave
240 days (mother's share of 480-day shared pool)
~80% (sliding, capped)
Paternity leave
90 days (reserved share of shared pool) + 10 days at birth
~80% (sliding, capped)
Sick leave (days 1-3)
Unpaid day 1 (karensavdrag); 80% days 2–3 (employer)
80% (employer) through day 14, then Försäkringskassan from day 15
~77.6% of SGI (Försäkringskassan) through day 364, ~73.2% beyond
Up to 120 days per child per year (until the child turns 12, or up to 18 in certain cases), paid by Försäkringskassan at approximately 80% of SGI
Temporary parental benefit to care for a sick child (VAB - vård av barn)
Unpaid leave of unlimited duration for employees with at least 6 months' current employment (or 12 months within the last 2 years) to pursue education, under the Employees' Right to Educational Leave Act
Study leave (studieledighet)
Up to 100 days total, shareable among eligible relatives, paid by Försäkringskassan at approximately 80% of SGI
Leave to care for a seriously ill close relative (närståendepenning)
Up to 50 days before childbirth for employees with physically strenuous jobs who cannot be reassigned to lighter duties, paid by Försäkringskassan at approximately 80% of SGI
Pregnancy benefit (graviditetspenning)
When hiring in Sweden, employers must provide statutory benefits required my local laws. An Employer of Record in Sweden can help you stay compliant and offer a competitive package.
Statutory Benefits
In addition to statutory leave, employees are entitled to the following statutory benefits:
Sweden funds its social insurance system primarily through employer contributions (arbetsgivaravgifter), totaling 31.42% of gross salary with no cap:
- Sickness insurance — 3.55%
- Parental insurance — 2.60%
- Old-age pension — 10.21%
- Survivors' pension — 0.60%
- Labour market fee — 2.64%
- Work injury insurance — 0.20%
- General payroll tax — 11.62%
Employees additionally pay a general pension contribution (allmän pensionsavgift) of 7% of gross salary up to a ceiling, which is offset by a matching tax credit and so has near-zero net cost.
WORKPLACE INJURY PROTECTION
Work-related injuries and occupational illness are covered under the statutory work injury insurance (arbetsskadeförsäkring), funded by the 0.20% component of employer social contributions and administered by Försäkringskassan.
- Covers medical costs, loss of income, and disability arising from workplace accidents or occupational disease
- Most employers also carry a collectively agreed top-up insurance, TFA (Trygghetsförsäkring vid arbetsskada), which supplements the statutory benefit
- Claims are made through Försäkringskassan and, where applicable, AFA Försäkring for the collective top-up
Sweden has no general statutory severance pay requirement.
- Employees are entitled to their salary and benefits during the statutory notice period (1-6 months depending on tenure)
- Any accrued but unused vacation pay must be paid out on termination
- Additional severance is typically only available where negotiated in the employment contract, a collective bargaining agreement, or a mutual separation agreement, or through redundancy support programs (e.g., TRR/TSL) linked to CBAs
Sweden does not have a mandatory 13th or 14th month salary.
- Instead, employees receive a statutory holiday pay supplement (semestertillägg) during annual leave
- The supplement is at least 0.43% of monthly salary per paid vacation day, roughly equivalent to an extra ~12% of a month's pay spread across the leave period
- Some employers or CBAs may offer additional bonuses, but these are contractual rather than legally required
Termination & notice in Sweden
Ending an employment relationship in Sweden requires careful planning to avoid disputes and unexpected costs. Learn the rules for notice periods, valid grounds for dismissal, and more.
Unfair dismissal
Under the Employment Protection Act (LAS), an employer may only terminate an indefinite employment contract where there is 'saklig grund' (objective/fair grounds) — either redundancy (arbetsbrist) or personal grounds (personliga skäl) such as serious misconduct or persistent poor performance after warnings and an opportunity to improve. Dismissals without objective grounds can be challenged and may be declared invalid by a court, potentially entitling the employee to reinstatement and/or damages.
Objective / fair dismissal
Objective grounds fall into two categories: (1) redundancy (arbetsbrist) — genuine business, organizational, or economic reasons, where statutory seniority rules (turordning, broadly 'last in, first out' within a redundancy pool) and reassignment/retraining obligations apply, and unions must be consulted under the Co-Determination Act (MBL); and (2) personal grounds (personliga skäl) — such as gross misconduct, serious breach of duty, or continued underperformance, generally requiring prior warnings and documented efforts to address the issue before dismissal is considered justified.
During probation
No objective grounds required (probation up to 6 months); notice commonly around 2 weeks (can vary by agreement/CBA); no severance.
After probation
Once probation ends (or the employee otherwise holds an indefinite contract), termination requires objective grounds (saklig grund) under LAS — redundancy or personal grounds — along with the applicable statutory notice period (1-6 months based on tenure), adherence to seniority rules for redundancies, and, where a union is involved, consultation obligations under the Co-Determination Act (MBL).
Notice periods, dismissal procedures, and termination rules in Sweden can be modified by applicable collective bargaining agreements and individual employment contracts, and are subject to legislative change. This summary is for general informational purposes only and does not constitute legal advice; employers should consult qualified Swedish employment counsel before initiating a termination.
Get visa support in Sweden
RemoFirst can support the visa + permit process in Sweden, including compliance, onboarding, and more. No local entity needed.
Learn moreRelated compliance info about Sweden
Staying compliant in Sweden is an ongoing responsibility, not a one-time task. Learn the key requirements around work permits, employee data protection, record-keeping, worker classification, and see how an Employer of Record in Sweden can take on that responsibility so you can focus on growing your team.
Content last reviewed Nov 2026. Employment laws change fast, always verify critical hiring decisions, and talk to our team of international experts.
