Hiring Employees in Sweden: A Comprehensive Guide
Table of Contents
Key Considerations for Employing in Sweden
Benefits
Employment Contracts
Onboarding
Leaves
Payroll & Taxes
Termination Process
Invoice Schedule
Get Started with Omnipresent
1. Introduction
Hiring employees in Sweden requires compliance with progressive labor laws, collective bargaining agreements, and comprehensive benefits. Omnipresent’s Employer of Record (EOR) service ensures full compliance while streamlining payroll and HR administration.
2. Key Considerations for Employing in Sweden
Currency: Swedish Krona (SEK, KR)
Language: Swedish
Employer Costs: High (~31.42% of salary)
Termination Complexity: High (requires just cause and union involvement)
Onboarding Timeline: Approximately 48 hours
Payroll Frequency: Monthly
*Once we receive the relevant documents from the employee, the contract is approved by all parties, and the deposit (if applicable) is paid, Omnipresent can onboard the employee within 48 hours
3. Benefits
Types of Benefits Offered
Mandatory Benefits: Public healthcare, pension contributions, disability and survivor protection, parental insurance, workers’ compensation.
Supplementary Benefits: Private healthcare, life insurance, wellness stipends, occupational pension.
Healthcare
The national health system is universal and funded through taxation.
Private healthcare it is commonly offered in Sweden. This benefit is the most sought-after by employees. We are able to provide private health insurance through our local partner.
Retirement
Occupational pension plans are common in Sweden and are typically governed by collective bargaining agreements. The most widely used schemes are (ITP1/ITP2).
Employers contribute to contribute to occupational pensions as follows
4.5% to 30% depending on income level and scheme.
4. Employment Contracts
Contract Types
Indefinite-term contracts (default under Swedish law)
Fixed-term contracts (limited use and subject to restrictions)
Part-time contracts
Contract Requirements
Omnipresent requires a written employment contract to outline the EOR terms and provide clarity for both employers and employees. Omnipresent ensures that all necessary key terms are included in the employment contracts we provide.
Language: Bilingual (Swedish & English, with the Swedish version prevailing).
Signature Requirements: Simple electronic signature.
Backdating: Not permitted under Omnipresent’s policy.
Probation Period
A probation period serves as an initial phase during which both the employer and the employee can evaluate if the role and the working relationship are a good match. It offers flexibility and clarity before the employment becomes long-term, supporting informed decisions for both sides.
Key aspects of probation in Sweden include:
The maximum probation period allowed is 6 months, this applies across roles and must be clearly stated in the employment contract.
If the employer decides not to continue the employment at the end of this period, they are required to provide the employee with at least 2 weeks’ advance notice.
If the employment is not terminated during this time, it automatically continues as a permanent (indefinite) employment contract.
Contract Customisation
We offer the possibility to include optional clauses when preparing the employment contract, allowing some flexibility to align with your company’s preferences such as offering extra-legal sick leave or flexible working arrangements.
That said, some parts of the contract cannot be modified due to Swedish labour law restrictions or limitations under collective agreements.
5. Onboarding
Timeline
The onboarding process in Sweden is efficient and can typically be completed within 48 hours once all necessary documentation is received and the contract is approved by all parties.
The onboarding includes setting up the employee on our platform, verifying their right to work in Sweden, processing the local employment contract, and enrolling the employee in applicable benefits and payroll.
Registration & Approvals
As part of our standard process, Omnipresent handles the registration of the employee with the Swedish Tax Agency (Skatteverket) and the Swedish Social Insurance Agency (Försäkringskassan), ensuring the employee is properly registered for tax and social security purposes.
Immigration & Visas
Omnipresent may offer support with immigration and visa matters in certain cases, depending on the specific circumstances.
Right-to-Work Verification
Right-to-work checks must be completed before employment begins. Employers are responsible for ensuring the employee is legally allowed to work in Sweden.
Employee Transfers from Another EOR
In the event an employee is transferring from another Employer of Record (EOR), previous seniority and benefits may be carried over, subject to local compliance review and approval.
6. Leaves
Leave Entitlements
Sweden offers a minimum of 25 calendar days of paid annual leave, earned from the first day of employment. The statutory leave year runs from April 1 to March 31, but Omnipresent follows a January–December cycle. Employees may carry over up to 5 unused days to the following year.
Employees have the right to take 4 consecutive weeks off between June and August.
Unlimited PTO can be offered, but statutory entitlements must still be met.
Fixed-term employees (≤3 months) may receive 12% of salary as holiday pay instead of taking leave.
Parental Leave
Employees are entitled to 480 days of paid parental leave, shared between both parents, with 90 days non-transferable, leave can be used until the child turns 12.
Maternity Leave: Mothers are entitled to 14 weeks of maternity leave — 7 weeks before and 7 weeks after childbirth.
Paternity Leave: Fathers can take 10 days of paternity leave within 60 days of birth, paid at the sick leave rate.
Sick Leave
Employees are entitled to paid sick leave with 80% salary for the first 14 days (paid by the employer), after which the state provides benefits; a medical certificate is required after 7 days.
Public Holidays
Sweden has 13 official public holidays some of the main holidays include New Year's Day, Epiphany, Good Friday, Easter Monday, Ascension Day, National Day, Midsummer Day, Christmas Eve, Christmas Day, and Boxing Day.
7. Payroll & Taxes
Payroll Cycle
The payroll cycle in Sweden is monthly.
Payroll cut-off date is 15th of each month (any changes to payroll or variables must be shared with Omnipresent by this date).
Payment Date: 25th of every month. If the 25th falls on a holiday or weekend, the salaries will be processed on the previous business day.
Compensation
Sweden does not have a national minimum wage; instead, wages are typically determined by collective bargaining agreements (CBAs). Bonuses and variable pay are permitted if they are clearly outlined and agreed upon in the employment contract.
Standard Work Schedule
The typical full-time work schedule in Sweden is 40 hours per week, usually from Monday to Friday. However, flexible working hours are common.
Employer Costs
Employer contributions in Sweden amount to approximately 31.42% of the employee’s salary. For a detailed breakdown, it is recommended to use the OmniCalculator.
8. Termination Process
Before taking any steps toward termination including informal discussions with the employee you must first contact Omnipresent. We will assess the case and provide guidance on next steps in line with Swedish labor law.
To formally initiate a termination, a request must be submitted through the OmniPlatform. Once received, our team will review the details and coordinate a compliant termination process.
Important: We cannot process terminations on the same day they are submitted. Sufficient time is required to evaluate the situation, engage with unions (if applicable), and ensure all legal requirements are met.
Involuntary Termination
It is difficult to legally terminate an employee in Sweden except in cases of gross misconduct or genuine redundancy. Strict legal procedures must be followed, and improper terminations can be challenged in court.
As a general rule, we always aim to terminate employment by mutual agreement, unless the dismissal is for disciplinary reasons.
Employees are entitled to a statutory notice period ranging from 1 to 6 months depending on their length of service.
Determined by length of service:
0–2 years: 1 month
2–4 years: 2 months
4–6 years: 3 months
6–8 years: 4 months
8–10 years: 5 months
10+ years: 6 months
Severance Pay
In Sweden, most involuntary terminations are carried out through mutual agreement, accompanied by severance pay. Given that approximately 70% of employees are unionized, trade unions may become involved in the negotiation of mutual termination terms, especially when severance is offered.
9. Invoice Schedule
Initial Fees
Setup Fees: Once Terms are signed, Omnipresent begins deploying resources for the setup process.
Deposits: Payable when the local employment contract is ready for signature. The deposit enables Omnipresent to move forward securely to sign the local employment contract with the employee.
Initial Salary Prepayment: The first month’s estimated labour costs are invoiced on the first day of employment.
Ongoing monthly Employment Costs and Fees: Thereafter, we invoice monthly in arrears for labour costs - once the final payroll, taxes, insurance, social security contributions, expenses and deductions have been calculated. Each monthly invoice will include our monthly service fee, deposit insurance (if applicable), and an FX fee (if applicable).
10. Get Started with Omnipresent
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