Hiring Employees in Sweden: A Comprehensive Guide
Table of Contents
Introduction
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 20 calendar days
Payroll Frequency: Monthly
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
Public healthcare is universal and funded through taxation.
Private healthcare is commonly offered to reduce waiting times and improve convenience.
Retirement
Occupational pension plans (ITP1/ITP2) are common and usually negotiated via collective agreements.
Employers contribute ~4.5% to 30% depending on income level and plan.
4. Employment Contracts
Contract Types
Indefinite-term contracts (default under Swedish law)
Fixed-term contracts (limited use and subject to restrictions)
Part-time contracts
Requirements
Written employment contracts are required.
Language: English or Swedish
Signature Requirements: Simple digital or wet signature
Backdating: Not permitted under Omnipresent’s policy
Probation Period
Maximum probation period: 6 months
Employers must notify employees 2 weeks in advance if the employment will not continue after probation.
Contract Customisation
Optional clauses for customization, such as extra-legal sick days or flexible working hours.
Certain elements cannot be customized due to labor law and collective agreement restrictions.
5. Onboarding
Timeline
The onboarding process in Sweden typically takes 20 calendar days, including:
Platform Setup
Right-to-Work Check
Employment Contract Processing
Benefits & Payroll Enrollment
Registration & Approvals
Omnipresent registers employees with the Swedish Tax Agency (Skatteverket) and Swedish Social Insurance Agency (Försäkringskassan).
Immigration & Visas
Omnipresent does not currently offer visa or work permit sponsorship in Sweden.
Right-to-Work Verification
Employers must verify employee eligibility to work in Sweden before employment begins.
Employee Transfers from Another EOR
Seniority and benefits may be carried over, subject to compliance checks and review.
6. Leaves
Leave Entitlements
Annual Leave: Minimum 25 paid vacation days per year
Annual Leave Carryover: Up to 5 days may be carried over for 5 years
Parental Leave
Up to 480 days (shared between both parents)
Paid by Försäkringskassan, not the employer
Sick Leave
First 14 days: Paid by the employer
From day 15 onwards: Paid by Försäkringskassan
Karensavdrag (qualifying deduction) applies for the first day of each sick period
Public Holidays
Sweden has 13 public holidays, including:
New Year's Day, Epiphany, Good Friday, Easter Monday, Ascension Day, National Day, Midsummer Day, Christmas Eve, Christmas Day, Boxing Day
7. Payroll & Taxes
Payroll Cycle
Frequency: Monthly
Cut-off Date: 6th of each month
Payment Date: Last working day of the month
Compensation
Minimum wage: No national minimum wage (set by CBAs)
Bonuses and variable pay: Allowed if agreed in the employment contract
Standard Work Schedule
40 hours per week (Monday–Friday)
Flexible work hours are common
Employer Costs
Estimated 31.42% of salary. Use the OmniCalculator for a detailed breakdown.
8. Termination Process
Notice Period
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
Termination Grounds
Must be for just cause, e.g., redundancy or personal misconduct
Union notification is required, even if the employee is not a union member
Severance Pay
Not mandatory unless included in contract or CBA
Disputes may be resolved through the Swedish Labor Court
9. Invoice Schedule
Initial Fees
Setup Fees: Due upon signing Terms
Deposit: Payable when the local employment contract is ready for signature
First Salary Prepayment: Invoiced on the first day of employment
Ongoing Monthly Payments
Labour costs invoiced monthly in arrears after payroll is processed
Each invoice includes:
Monthly service fee
Deposit insurance (if applicable)
FX fee (if applicable)
10. Get Started with Omnipresent
We simplify international hiring, legal compliance, payroll, benefits, and more. Contact us to start your journey toward hassle-free global employment.