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Hire and manage employees in Sweden

As your Employer of Record (EOR) in Sweden, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
February 4, 2026
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General Overview

Sweden is a highly developed, export-driven economy in Northern Europe known for its innovation, high standard of living, and strong welfare state. Its labor market is governed by a mix of statutory regulations and collective bargaining agreements, ensuring robust employee protections and clear employer obligations.

Employment Contracts

  • Written Requirement: All contracts must be in writing.
  • Backdating: Contracts may be backdated within the same month without tax implications, though additional payroll costs may apply.
  • Fixed-Term Contracts: Fixed-term contracts can be used for a cumulative period of up to 2 years, provided they are justified with objective criteria.

Probation Period

The maximum trial (probation) period permitted is 6 months.

Working Hours

Regular Hours: Generally 8 hours per day and 40 hours per week.

Overtime Limits:

  • Maximum overtime in a 4-week period is 48 hours.
  • Total overtime is capped at 150 hours per calendar year.

Vacation Days

Annual Holiday Entitlement: Employees earn 25 days of paid holiday for 12 months of work in the holiday year (April 1 to March 31).

Holiday Pay: Paid out in May, calculated as 0.43% of averaged wages plus 12% of qualified variable bonuses from the previous holiday year.

Sick Leave

Initial Sick Leave: Employers usually cover the first day of sick leave (though not legally required).

Subsequent Sick Leave:

  • From the 2nd to the 14th day, employees receive their regular salary paid by the employer.
  • After the 14th day, the employer is no longer required to pay; employees may claim sickness benefits from local social authorities.

Wages and Salary Payment

Salary Payment Date: Salaries are typically paid on the 25th of every month.

Minimum Wage: There is no legally set minimum wage in Sweden; wages are generally determined through collective agreements and individual negotiations.

Public Holidays

Sweden observes the following national public holidays (additional regional holidays may apply):

  • January 1: New Year’s Day
  • January 5: Twelfth Day
  • January 6: Epiphany
  • 15–18 April: Easter (movable dates)
  • May 1: Labour Day
  • May 26: Ascension Day
  • June 4: Pentecost
  • June 5: Whitsun
  • June 6: National Day
  • June 24: Midsummer Eve
  • June 25: Midsummer Day
  • November 5: All Saints’ Day
  • December 24: Christmas Eve
  • December 25: Christmas Day
  • December 26: Boxing Day
  • December 31: New Year’s Eve
    If a public holiday falls on a Sunday, a substitute day off is generally provided within the following three months.

Employer Taxes

  • Social Security: Employers are required to contribute 31.42% of the total taxable remuneration (with no cap).
  • Pension-Related Wage Tax: Employers with a permanent establishment in Sweden also pay a specific wage tax of 24.26% on pension costs associated with tax-qualified company pension plans.

Employee Taxes

Income Tax:

  • For taxable income from 0 to 540,700 SEK, the national income tax is 0%; for income above 540,700 SEK, the rate is 20%.
  • In both ranges, the average municipal tax rate is approximately 32%.

Pension Fee: Employees pay a 7% pension fee on gross earnings, capped at SEK 38,500 for incomes up to SEK 550,400.

Notice Period

Employer's Notice:

  • For employment under 2 years, notice starts at 1 month.
  • Notice periods increase with longer tenure, reaching up to 6 months for relationships lasting 10 years or more.

Termination and Severance Pay

Termination Process: Terminations should consider accrued and untaken holidays, which are paid out upon termination.

Severance Pay:

  • Severance is not legally mandatory; however, it is common to include provisions for severance in negotiated or mutually agreed terminations.
  • Typically, severance pay corresponds to 6–12 months’ salary, depending on seniority and tenure.

Legal Recourse: Employees may appeal to a court if they believe their dismissal was unjustified, and additional compensation may be awarded if a court finds the termination unfair.

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What is International EOR and PEO?

International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.

Does Acvian handle time record submissions?

Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.

How can employees view their payroll details?

Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.

How Acvian handles payroll disputes?

Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.

Does Acvian require advanced monthly payments of salaries and service?

Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.

Can Acvian provide consultations regarding a labor and tax legislation?

Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.

Which benefits does Acvian provide?

Acvian provides a diverse range of benefits, including but not limited to:

  • Health insurance
  • Car leasing
  • Gym allowance
  • Per diem compensation
  • Maternity leave

We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.

Can Acvian provide private health insurance?

Acvian can provide private health insurance options as part of its comprehensive employee benefits package.

What would the monthly/yearly costs for the employee be?

The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.

Can Acvian help with entity set up?

While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.

Offboarding: how it is handled?

Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.

When does business need it?

Businesses typically need EOR and PEO services when they:

  • Expand into new international markets.
  • Hire remote employees in foreign countries.
  • Seek to streamline global workforce management.
  • Aim to ensure compliance with local labor laws and regulations.
  • Want to reduce the time and cost of establishing legal entities abroad.

Is Acvian compliant with GDPR?

Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.

Do you provide employment agreements?

Yes, Acvian provides both permanent and fixed-term employment contracts, with the possibility of extension. After the second extension, the contract becomes indefinite.

How do employees view their payroll?

Employees can view their payroll details through the monthly payslips they receive and also via the Acvian platform.

Where can Acvian supply EOR services?

Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.

How does payroll work under EOR?

Under EOR, Acvian manages the payroll process by:

  • Acting as the legal employer of your foreign workforce.
  • Handling salary calculations, deductions, and disbursements.
  • Ensuring compliance with local tax and labor laws.
  • Managing payroll taxes, social contributions, and benefits.
  • Providing timely and accurate payroll processing for your employees.

Explore the details here.

Can you provide support for expatriate EOR workers?

Yes, Acvian provides comprehensive support for expatriate EOR workers, including:

  • Visa and work permit assistance.
  • Relocation and housing support.
  • Local registration and compliance.
  • Payroll and tax management.
  • Coordination of benefits and insurance coverage.

Explore in details here.

What are the details of expats support?

Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:

  • Assistance with visa and work permit applications, renewals, and compliance.
  • Support for relocation, including housing, schooling, and local registration.
  • Guidance on local tax regulations and filings.
  • Coordination of locally compliant benefits and insurance coverage.
  • Ongoing support for any changes or issues that may arise during the expatriate assignment.

What happens after onboarding?

After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.

How many days will it take for our personnel to be onboarded?

The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.

Does Acvian provide in-country support for employee inquiries or assistance requests?

Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.

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