Payroll and Benefits Guide - Sweden

Sweden
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Currency

Swedish Krona (SEK)
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Capital

Stockholm
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Employer Taxes

31.42%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Sweden is home to many multinational companies, including IKEA, H&M, Ericsson, Volvo, and Spotify.

The Nobel Prizes, including the Nobel Peace Prize, are awarded annually in Stockholm and Oslo, Norway, as per Alfred Nobel’s will.

Swedes enjoy outdoor activities and have the legal right to access nature through the concept of “allemansr√§tten” (the right of public access).

Sweden has a population of approximately 10 million people.

Sweden is known for its high standard of living.

Midsummer, a traditional Swedish holiday celebrating the summer solstice.

Contributions

Employee Payroll Tax

Contribution Type Rate
Pension Insurance 7.00%
Church Tax 1.03%
Burial fee Varies

Employer Payroll Tax

tr>Survivors Pension0.60%tr>Labor Market Fee2.65%tr>Occupational Injury0.20%tr>General Payroll Tax11.62%

Contribution Type Rate
Health Insurance 3.55%
Parental Insurance 2.60%
Retirement Pension 10.21%

Payroll

Payroll Cycle

The payroll cycles are monthly.

13th Salary

In Sweden, 13th-month payments are not legally mandatory. Employers can pay bonuses at their discretion.

Work Hours and Week

The standard working week consists of 40 hours over the course of five days,

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.

Leave

Paid Time Off

Employees are entitled to 25 days of paid vacation per year after completing one year of work at a company.

Public Holidays

Public holidays that fall on the weekend are usually lost.

Sick Days

The employer is responsible for compensating the employee for the 2nd to the 14th day of sick leave, while social security benefits come into effect for sickness lasting longer than 14 days.

Maternity Leave

Mothers receive 14 weeks of maternity leave, which is to be taken seven weeks before the birth of the child and seven after the birth.

This leave is typically divided into two periods: seven weeks to be taken before the birth of the child and seven weeks to be taken after the birth. The purpose of this arrangement is to allow mothers to have sufficient time for both prenatal and postnatal care, ensuring the well-being of both mother and child.

Paternity Leave

In Sweden, fathers are entitled to 10 days of paid paternity leave.

Parental Leave

Parents are entitled to 480 days of parental leave, which can be split between the parents or taken by a single parent. Employees can also use their parental leave entitlement to reduce their working hours until the child is eight years of age.

Termination

Termination Process

The termination process in Sweden is subject to various factors such as the employment agreement, collective agreement, type of contract, and the reason for termination.

Notice Period

The specific notice period may vary depending on whether the employer has a collective agreement or not.

Severance Pay

The specific notice period may vary depending on whether the employer has a collective agreement or not.

Probation Period

Probation Period

The maximum duration of a probationary period is six months.

Immigration

In general, citizens from countries outside the European Union (EU) are required to apply for a work permit in order to work in Sweden.

However, there are a few exceptions to this rule. Citizens of Australia, Canada, Hong Kong, Japan, New Zealand, and South Korea who are between the ages of 18 and 30 can apply for a working holiday visa, which allows them to work in Sweden for up to one year.

For employment that lasts less than three months, citizens of certain countries are required to have both a work permit and a visa

For Work Permits

To be eligible for a work permit, you must have received an official job offer from a Swedish employer.

VAT

The standard rate of VAT in Sweden is 25.00%.