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Employer of Record (EOR) in Sweden

What you'll learn

  • Country Introduction
  • Employment Terms
  • Minimum Wage and Working Hours
  • Statutory Leave Laws
  • Termination Process
  • Additional Information
Sweden Introduction

Sweden is a nordic country in northern Europe bordered by Norway and Finland, and connected to Denmark by a bridge–tunnel across the Öresund. The country lies west of the Baltic Sea and Gulf of Bothnia, providing a long coastline. Sweden has a strong economy and ranks very highly in terms of quality of life, education, health, protection of civil liberties, income equality, gender equality, prosperity, and human development.

Employment Terms

Types of Contracts

  • Indefinite
  • Fixed Term
  • Open-ended contracts

Working Hours

The maximum normal working hours in Sweden is 40 hours, plus 8 hours of overtime per week. The overtime payment rate is normally agreed with the employer, and extra hours can also be converted into extra holidays.

Minimum Wage

There is no national minimum wage in Sweden, and it is usually set by industry. The average salary is around SEK 188 per hour.

Probation Period

The maximum probation period length in Sweden is 6 months.

Taxes & Local Employment Costs

Employee Taxes

Income up to SEK 613,900 is taxed at 0%, and income over SEK 613,900 is taxed at 20% via the Progressive National Income Tax. The Municipal Income Tax is 32%.

Employer Taxes & Contributions

  • 3.55% - Health Insurance
  • 2.6% - Parental Insurance
  • 10.21% - Retirement Pension
  • 0.6% - Survivors Pension
  • 2.64% - Labor Market Fee
  • 0.2% - Occupational Injury
  • 11.62% - General Payroll Tax

Types of Leave

Annual Leave (Vacation)

Employees in Sweden are entitled to 25 days of paid time off each year (after completing 1 year of work at their company). Leave is accrued at 2.08 days per month, and emplpoyees can carryover 5 days into the next year.

Sick Leave

Employees in Sweden are entitled to sick leave, which is paid at 80% of the salary for the first 14 days by the employer, and any sick beyond that is unpaid and requires the employee to apply for social insurance benefits.

Maternity Leave

Employees in Sweden are entitled to a total of 14 weeks of maternity leave, usually 7 weeks before childbirth and 7 weeks after childbirth. It is obligatory to allocate a minimum of 2 weeks of maternity leave before and after the baby's delivery.

Paternity Leave

Employees in Sweden are given 10 working days for paternity leave.

Parental Leave

Parents also collectively receive 480 days of leave, which can be utilized from the child's birth until they reach 12 years of age. Compensation during parental leave is generally paid at 80% of their regular salary by the Swedish government.

Public Holidays

  • New Year’s Day - January 1
  • Epiphany - January 6
  • Good Friday - Friday before Easter Sunday
  • Easter Sunday - Moveable date
  • Easter Monday - Day after Easter Sunday
  • International Workers' Day/May Day - May 1
  • Ascension Day - Thursday, 39 days after Easter Sunday
  • Whit Sunday - 7th Sunday after Easter
  • National Day of Sweden - June 6
  • Midsummer's Day - Saturday between June 20-26
  • All Saints' Day - Saturday between Oct 31-Nov 6
  • Christmas Day - December 25
  • Second Day of Christmas - December 26

Termination Process

Termination Process

To terminate an employment contract, employers must provide a clear, just reason for the termination, as well as sufficient notice. There is also usually a termination clause in the employment agreement that is mutually agreed by the employer and the employee - the mutual termination clause allows both parties to terminate the agreement any time, and a special document should be signed specifying the payments, end date, etc.

Notice Period

Notice periods depend on what is stipulated in the employment contract, and are usually between 1 month and 6 months (for more senior employees). During probation, the notice period is 14 days.

Severance Pay

There is no law requiring employers to provide severance pay, however collective agreements may have their own requirements.

Additional Information


Swedish Krona (SEK)
Capital City:
10.5 Million
Cost of Living Rank:
VAT (Valued Added Tax):
Employer TaxES

★  3.55% - Health Insurance

★  2.6% - Parental Insurance

★  10.21% - Retirement Pension

★  0.6% - Survivors Pension

★  2.64% - Labor Market Fee

★  0.2% - Occupational Injury

★  11.62% - General Payroll Tax

Get Started in 3 Steps


Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.


Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.


Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 180+ countries
How Remofirst employs in Sweden

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Sweden get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Sweden are paid on time in Swedish Krona (SEK). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Sweden, they can speak with our customer support team to get answers from our team of experts.