Employment and labor laws vary from country to country. This guide is intended to provide the most up to date information available. We will update this guide as needed when changes are made to the laws.
Employment Contracts
Employers are legally required to provide formal written contracts for all employees that include salary/wage, termination terms, job title, etc. The contracts must be written in Swedish and use the Swedish Krona currency (SEK).
Working Hours
The standard working week consists of 40 hours over the course of five days, following the commencement of five consecutive working hours an employee must be allowed a break.
Overtime
All work more than the standard working hours per week is to be paid as overtime and is regulated by employment contract/collective agreements. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed. These maximums are 48 hours per week, an average of 50 hours per month, or 200 hours annually over four months.
All overtime hours exceeding 40 hours a week are paid at an overtime compensation rate; this rate is stipulated in the employment contract/collective agreements.
For overtime worked on weekdays before 8.00 pm, hours are compensated at the monthly salary divided by 94 for each additional hour of work. For hours worked after 8.00 pm or on weekends, hours are compensated at the monthly salary rate divided by 72 for each additional hour worked.
Employees who hold a managerial or comparable role or organize their working schedule are not entitled to overtime compensation. Including overtime pay in the gross salary is sometimes an option for non-managerial roles as well.
Public Holidays
Public holidays that fall on the weekend are usually lost.
For the year 2024:
- 1 Jan: New Year’s Day
- 6 Jan: Epiphany
- 29 Mar: Good Friday
- 31 Mar: Easter Sunday
- 1 Apr: Easter Monday
- 1 May: May Day
- 9 May: Ascension Day
- 19 May: Whit Sunday
- 6 Jun: National Day
- 22 Jun: Midsummer Day
- 2 Nov: All Saints’ Day
- 25 Dec: Christmas Day
- 26 Dec: 2nd Day of Christmas
Annual Leave (vacation)
The annual leave accrual cycle is from April 31st to March 31st of the following year. Employees are entitled to 25 days of paid vacation each year after one year of work at the company at a 2.08 monthly accrual. It is common to give 30 days per year. During the first year of employment, the employees accrue 25 working days to be used in the second year of employment.
Any unused vacation days above 20 days can be carried over to the following year. Once accrued, a maximum of 30 vacation days can be held for up to five years. Vacation pay accounts for 12% of an employee’s gross annual salary. Cash out of unused vacation days is possible upon termination only.
Sick Days
In Sweden, paid sick leave is compensated to the employee for the 2nd-14th day of sick leave by the employer, and for sickness of more than 14 days, benefits are paid by social security. The first day of sickness is unpaid.
Generally, sick leave is compensated at 75.00% – 80.00% of the employee’s regular pay rate, depending on the length of the sickness. See EoR page for specifics on sick pay compensation.
Maternity Leave
Women are required to take a mandatory two week maternity leave following childbirth, paid by the Swedish Social Insurance Agency at approximately 80% of the worker’s salary. Additionally if there are specific medical grounds, pregnant employees might be eligible to take up to 60 days (or longer in certain scenarios) of Government funded leave before childbirth.
This entitlement is part of the 480 day of the joint parental leave.
Additional leave can be taken as part of the Parental Leave eligibility.
Paternity/Partner Leave
The non pregnant partners is eligible to take 10 days of leave, which must be taken within the first 60 days following the birth. This leave is paid for by the Swedish Social Insurance Agency at approximately 80% of the worker’s salary.
Parental Leave
Both parents (regardless of gender) can take shared Parental Leave, that allows a combined total of 480 days to be taken off (a maximum of 390 days can be used by one parent). Parents can take a maximum of 30 days of this leave at the same time as each other (commonly referred to as “double days”), until the child reaches one years of age. Parents can choose to take leave in one continuous period or divide it into several blocks, with a maximum of three periods allowed each year (unless the employers agrees to allow it being used in more than 3 periods).
Parental Leave benefits can be used up until the child turns 12 years old or completes year 5 of compulsory school. Employees also have the option to use the Parental Leave entitlement to reduce their working hours until the child is eight years of age.
This leave is paid for by The Swedish Social Insurance Agency capped at 1,116 SEK per day for the initial 390 days, and 180 SEK per day for the remaining 90 days.
Workers should give their employers at least two months advance notice on their intention to take parental leave.
Other Leave
In Sweden, there may be several types of other leave entitlements available as detailed in the respective Collective Bargaining Agreement/Employment Contract. This leave is to be approved by the employer and is applicable to members of the employee’s family and close relatives.
Employee Severance and Terminations
Termination Process
The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination. However, no termination due to economic reasons or long-term disability can occur without the Employee Insurance Agency (UWV).
The Employment Service must be notified of an employee’s termination and if their company has more than five employees, companies may have to negotiate with trade unions. Following any negotiations, the employer must provide an employee with a termination notice in writing and in person. If this is not possible, then a registered letter is to be sent to the employee’s home address.
Notice Period
The notice periods in Sweden are outlined in the employment contract and collective bargaining agreement of the Employment Protection Act.
For employers with a collective agreement, notice periods are stipulated in the employment contract following an agreement between the employer and employee. The notice period is commonly one month.
For employees without a collective agreement, the notice period is dependent on the employee’s serenity as follows:
- Less than two years – 1 month of notice
- Two years but fewer than four years -2 months of notice
- Four years but fewer than six years – 3 months of notice
- Six years but fewer than eight years – 4 months of notice
- Eight years but fewer than ten years – 5 months of notice
- Ten years or more – 6 months of notice
Suppose an employer has dismissed an employee without notice due to gross misconduct. In that case, employees with a collective agreement should serve the notice period stipulated within their employment contract, commonly one month. In contrast, an employee without a collective agreement should serve a one-month notice period in accordance with the Employment Protection Act.
Severance Pay
Severance is not mandatory in Sweden. However, it might be required if stated in a collective agreement or employment agreement.
Probation Period
In Sweden, probation periods are outlined in the employee’s employment contract/collective agreement. The probationary period can be a maximum of six months. The period can be shorter and the employee can become permanently employed before the probationary period is complete. If a probationary period is not terminated after six months, the employment will automatically become permanent. The probationary period must be stated in the employment contract. The employee needs to be informed two weeks at the latest before the period ends if he or she will be permanently employed. Salaries and other benefits are the same during a probationary period.
Payroll Cycle
In Sweden, the payroll frequency is typically monthly. Employers usually make the payment of salaries on the 25th of each month.
In Sweden, there is no official national minimum. Minimum wages are stipulated within the collective bargaining agreements through the trade unions of the employee.
13th Salary
In Sweden, 13th-month payments are not legally mandatory. Employers can pay bonuses at their discretion.
Employer Payroll Contributions
*Employer contributions are based on date of birth, as follows:
- Employees born in 1937 or earlier are not subject to contributions
- Employees born between 1938 and 1955 are subject to contribution at the rate of 10.21%
- Employees born in 1956 or later are subject to contributions at the rate of 31.42%
- Employees born between 2003 and 2005 are subject to contribution at the rate of 10.21% up to a salary of 25.000 skr/month. Salaries above that are subject to contribution at the rate of 31.42%
Employees born between 1998 and 2002 are subject to contribution at the rate of 19.73% up to a salary of 25.000 skr/month. Salaries above are subject to contribution at the rate of 31.42% (temporarily until 31st of March 2023).
Employee Payroll Contributions
Please refer to government income tax tables for the full range of taxes (in Swedish). There are six tax tables based on:
- Where the employee lives in Sweden
- Column 1 refers to salaries, fees, and similar remuneration, used for employees under age 65 (1st of January)
- • Column 2 refers to pensions and other benefits and are used for those over age 65
- • Column 3 refers to salaries, fees, and similar remuneration, used for employees over age 65 (1st of January)
- • Column 4-6 refers to sick pay, unemployment pay, pensions, or other benefits
- • For monthly income over SEK 80 000 tables show % rates for tax deductions
Employee Income Tax
VISA
Generally, citizens from countries outside the EU must apply for a work permit to work in Sweden. There are a few exceptions to the rule. Citizens of Australia, Canada, Hong Kong, Japan, New Zealand, and South Korea aged 18–30 can also apply for a working holiday visa for up to one year.
For employment that lasts less than three months, citizens of certain countries must have a work permit and a visa.
To qualify for a work permit, you must have received an official offer of employment from a Swedish employer. The job must also:
- Have been advertised in the EU/EEA for at least ten days
- Offer terms of employment that match those set by Swedish collective agreements or those that are customary within the occupation or industry
- Pay a minimum monthly salary of SEK 13,000 before taxes
You must also hold a valid passport in your home country.
VAT
The standard rate of VAT in Sweden is 25.00%.