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Swedish Krona (SEK)
EOR IN Sweden
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A guide to employing and growing your team in Sweden
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Sweden possesses a highly advanced, export-oriented economy known for its leadership in technology, green energy, and healthcare. The Swedish labor market is unique for its reliance on the “Swedish Model,” where most employment conditions are governed by Collective Bargaining Agreements (CBAs) rather than federal law. There is no statutory national minimum wage in Sweden; minimum pay is instead determined by these industry-specific CBAs. For foreign nationals, a work permit salary threshold of SEK 33,390 per month applies as of June 2026.
Employer Contributions
Social Security Contributions: 31.42%
Workplace Accident Insurance: Included in social security contributions
Total Employer Contribution: 31.42%
Employee Payroll Taxes
Social Security Contributions: 7% (employee portion)
Total Employee Contribution: 7% + applicable income tax
Employee Income Tax Rates
Sweden has a progressive income tax system with both national and municipal taxes:
Up to 20,135 SEK: Exempt
20,136 SEK – 537,200 SEK: 32% municipal tax
Above 537,200 SEK: Additional 20% national tax
Statutory Leave
In Sweden, employees are entitled to 25 working days (5 weeks) of paid annual leave per year. There are 13 public holidays annually. For sick leave, employees are entitled to up to 14 days of paid sick leave from the employer. After that, compensation from the Social Insurance Agency (Försäkringskassan) begins, typically covering up to 80% of the salary.
Pregnancy and Maternity Leave
In Sweden, female employees are entitled to 480 days of parental leave, with 390 days paid at 80% of their salary and the remaining 90 days paid at a flat rate. The leave can be shared between both parents, with the father entitled to at least 10 days of paid leave, which can be taken in blocks during the first year of the child’s life.
Paternity Leave
Fathers are entitled to a portion of the 480 days of parental leave, with the first 10 days of paid leave, typically taken during the first month after birth.
Work-Related Injury Leave
Parental Leave: As mentioned, up to 480 days of leave for both parents, shared between them as they see fit.
Personal Leave: Paid leave is provided for events such as marriage or bereavement of close family members.
Work Injury Leave: Employees who are injured at work are entitled to paid leave, with compensation provided by the employer and social insurance, covering lost wages and medical expenses.
Termination Process
Dismissal for Personal Reasons: Requires a formal process, including notice, justification, and a meeting with the employee. The employer must follow a structured procedure that includes the possibility of dispute resolution through unions.
Dismissal for Economic Reasons: Employees can be laid off due to economic difficulties or restructuring, but the process requires negotiation with trade unions and potential severance packages.
Severance Pay: Severance pay is often negotiated, typically offering compensation based on the employee’s length of service and salary.
Notice Period
In Sweden, the notice period for fixed-term contracts is 1 month. For permanent contracts, the notice period is as follows:
Under 2 years of service: 1 month’s notice
2 to 4 years of service: 2 months’ notice
Over 4 years of service: 3 months’ notice
Probation Period
In Sweden, the probation period for permanent employees is typically 6 months. During this period, employees must receive at least 80% of their salary and have the right to receive notice if their employment is terminated.