Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Sweden

Your quick guide on talent and labor compliance norms in Sweden
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Capital
Stockholm
Currency
Swedish Krona (SEK)
Languages
Swedish, English
Payroll Frequency
Monthly
GDP per Capita
$61,680
Employer Tax
31.24%

Supplementary Guide for Employment and Expansion in Sweden

Talent Overview

Sweden has the most progressive economy for a highly developed export-oriented economy, contributed by timber, iron ore, and hydropower. They hold the 8th rank out of 45 in Europe for economic growth. The country followed a global pattern for the development of its economic statistics.

Major economic hubs:

Stockholm, Gothenburg, Malmö

Skills in demand :

Construction, Engineering, Healthcare specialists, IT Specialists

Local Universities

The top local universities in Sweden are listed below:

KTH Royal Institute of Technology

RANKING

Local : 1

World : 163

Lund University

RANKING

Local : 2

World : 219

Uppsala University

RANKING

Local: 3

World : 240

Linköping University

RANKING

Local : 4

World : 265

Gothenburg University

RANKING

Local : 4

World : 338

Salary Data

The following table provides the average salary data in Sweden:

Job Title Average Salary (SEK) Average Salary (USD)
Financial Manager 93,600 SEK 9614.78 USD
General Manager 84,900 SEK 8721.10 USD
Business Development Manager 72,800 SEK 7478.16 USD
Project Manager 60,100 SEK 6173.59 USD
Business Analyst 59,800 SEK 6142.78 USD
Financial Analyst 57,500 SEK 5906.51 USD
Office Manager 40,000 SEK 4108.88 USD

Talent Sourcing Tips

Top Local Job Boards:

CareerBuilder, Blocket, Jobbland

Number of LinkedIn users:

4,480,000

Multiplier Recruitment Partner

iXceed

Employing in Sweden

To onboard employees from Sweden, the employer should be knowledgeable about the Employment terms, Labor laws, deductions, and benefits. This section has all the necessary information that employers can use.

Employee Contract

The employer has to provide the employee with a written employment contract. According to Swedish laws, the contract must contain all the terms and conditions and the employer's information. There is no statutory language preferred in Sweden’s employment contract. Employers must ensure that the contracts are in a language that is understood by all of the parties involved.

Probation Period

The probation period in Sweden will be based on the collective agreement.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day Public holiday
5 Jan Twelfth Night De facto half-holiday
6 Jan Epiphany Public holiday
15 Apr Good Friday Public holiday
16 Apr Holy Saturday De facto holiday
17 Apr Easter Sunday Public holiday
18 Apr Easter Monday Public holiday
1 May May 1st Public holiday
26 May Ascension Day Public holiday
5 Jun Whit Sunday Public holiday
6 Jun National day Public holiday
24 Jun Midsummer Eve De facto and Bank holiday
25 Jun Midsummer Day Public holiday
4 Nov All Saints' Eve De facto half-holiday
5 Nov All Saints' Day Public holiday
24 Dec Christmas Eve De facto holiday
25 Dec Christmas Day Public holiday
26 Dec Boxing Day Public holiday
31 Dec New Year's Eve De facto and Bank holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual/Earned Leave 25 days Yes
Sick Leave 14 days Yes
Maternity Leave 14 weeks Yes

Payroll

Payroll Cycle

The employee in Sweden must be paid monthly.

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Minimum Wage

There is no official minimum wage in Sweden. The employer directly negotiates the rate through a collective bargaining agreement.

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Overtime Pay

Employees are allowed to work for a maximum of 50 hours of overtime in a month and the employee is usually paid at a rate of 50% to 100%.

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Health Examination Clause

Bonus

13th Month Pay

Employees are allowed to work for a maximum of 50 hours of overtime in a month and the employee is usually paid at a rate of 50% to 100%.

Employee Benefits

  • ~Private medical insurance
  • ~Sickness & Disability
  • ~Life insurance
  • ~Work injury insurance
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Taxes

Employer Payroll Tax

Category Contributions
Retirement Pension Contribution 10.21%
General Payroll Tax 11.62%
Health Insurance 3.55%
Occupational Injury 0.02%
Parental Insurance 2.6%
Survivor’s Pension 0.6%
Labour Market Fee 2.64%

Employee Payroll Tax

Category Contributions
Pension Insurance 7%

Employee Income Tax

Annual Taxable National Income Tax Municipal Income Tax
From 0 to 523,200 0 32%
Over 523,200 20% 32%

VAT

The standard VAT rate in Sweden is 25%.

Offboarding & Termination

Termination Process

A‍ notice may or may not be given when terminating an employee in Sweden. However, employers must have a clear and justifiable basis for making the decision.

Notice Period

The Notice Period in Sweden will be up to 6 months.

Severance Pay

There are no provisions regarding severance pay in Sweden. However, employees may receive severance pay if it is indicated in their employment agreement with their employers upon onboarding.

Visa and Immigration

There are seven types of Swedish work visas that foreign employees may apply for based on the purpose and duration of their employment. Below are the following:

  • ~Sweden Work Permit
  • ~Intra-company Transfer
  • ~Business Visa
  • ~Self-employment visa
  • ~Working Holiday visa
  • ~EU Blue Card
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