Payroll and Benefits Guide Sweden

Last updated: May 16, 2023

Swedish Krona (SEK)
Employer Taxes
Payroll Frequency
Employee Costs
Date Format
Fiscal Year
1 January- 31 December



Employer Payroll Contributions

31.42% Total Employment Cost


Health Insurance


Parental Insurance


Retirement Pension*


Survivors Pension


Labor Market Fee


Occupational Injury


General Payroll Tax (10.21% total contribution for employees born between 1938-1955 and 2003–2005)


Employee Payroll Contributions

7.00% – 8.03% Total Employee Cost


Pension Insurance


Church Tax (the national average for the church tax fee is 1.03% of taxable income. The member of the Church of Sweden on November 1st will pay church fees throughout the following year)


Burial fee (paid by people registered in Sweden on November 1st, the year before the income year)

Employee Income Tax

Please refer to government income tax tables for full range of taxes (in Swedish).

There are six tax tables based on:

• Where the employee lives in Sweden

• Column 1 refers to salaries, fees, and similar remuneration, used foremployees under age 65 (1st of January)

• Column 2 refers to pensions and other benefits and are used for those over age 65

• Column 3 refers to salaries, fees, and similar remuneration, used for employees over age 65 (1st of January)

• Column 4-6 refers to sick pay, unemployment pay, pensions, or other benefits

• For monthly income over SEK 80 000 tables show % rates for tax deductions

State Employee Income Tax


Up to 540,700 SEK (up to the age of 65 at the beginning of the year, a total annual income of 554,900 SEK (540,700 + 14,200) before the state income tax begins to be levied)


540,700 SEK and above (above the age of 65 at the start of the year, a total annual income of 618,700 SEK (540,700 + 78,000) before the state income tax is levied

Employer taxes


Employee taxes


Minimum Wage


In Sweden, there is no official national minimum. Minimum wages are stipulated within the collective bargaining agreements through the trade unions of the employee.




Payroll Cycle

In Sweden, the payroll frequency is typically monthly. Employers usually make the payment of salaries on the 25th of each month.

13th Salary

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

Working Hours



The standard working week consists of 40 hours over the course of five days, following the commencement of five consecutive working hours, an employee must be allowed a break.


All work more than the standard working hours per week is to be paid as overtime and is regulated by employment contract/collective agreements. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed. These maximums are 48 hours per week, an average of 50 hours per month, or 200 hours annually over four months.

All overtime hours exceeding 40 hours a week are paid at an overtime compensation rate; this rate is stipulated in the employment contract/collective agreements.

For overtime worked on weekdays before 8.00 pm, hours are compensated at the monthly salary divided by 94 for each additional hour of work. For hours worked after 8.00 pm or on weekends, hours are compensated at the monthly salary rate divided by 72 for each additional hour worked.

Employees who hold a managerial or comparable role or organize their working schedule are not entitled to overtime compensation. Including overtime pay in the gross salary is sometimes an option for non-managerial roles as well.

Working Week



Paid Time Off

Employees are entitled to 25 days of paid vacation each year after one year of work at the company at a 2.08 monthly accrual. It is common to give 30 days per year.

Once accrued, vacation days can be held for up to five years. Vacation pay accounts for 12% of an employee’s gross annual salary.

Vacation Days
Public Holidays

Public Holidays

Public holidays that fall on the weekend are usually lost.

Sick Days

In Sweden, paid sick leave is compensated to the employee for the 2nd-14th day of sick leave by the employer, and for sickness of more than 14 days, benefits are paid by social security. The first day of sickness is unpaid.

Generally, sick leave is compensated at 75.00% – 80.00% of the employee’s regular pay rate, depending on the length of the sickness.

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.



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.

Other Leave

In Sweden, there may be several types of other leave entitlements available as detailed in the respective collective bargaining agreement/employment contract.
This leave is to be approved by the employer and is applicable to members of the employee’s family and close relatives.


Termination Process

The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination. However, no termination due to economic reasons or long-term disability can occur without the Employee Insurance Agency (UWV).

The Employment Service must be notified of an employee’s termination and if their company has more than five employees, companies may have to negotiate with trade unions. Following any negotiations, the employer must provide an employee with a termination notice in writing and in person. If this is not possible, then a registered letter is to be sent to the employee’s home address.

Notice Period

The notice periods in Sweden are outlined in the employment contract and collective bargaining agreement of the Employment Protection Act.
For employers with a collective agreement, notice periods are stipulated in the employment contract following an agreement between the employer and employee. The notice period is commonly one month.
For employees without a collective agreement, the notice period is dependent on the employee’s serenity as follows:

  • Less than two years – 1 month of notice
  • Two years but fewer than four years -2 months of notice
  • Four years but fewer than six years – 3 months of notice
  • Six years but fewer than eight years – 4 months of notice
  • Eight years but fewer than ten years – 5 months of notice
  • Ten years or more – 6 months of notice

Suppose an employer has dismissed an employee without notice due to gross misconduct. In that case, employees with a collective agreement should serve the notice period stipulated within their employment contract, commonly one month. In contrast, an employee without a collective agreement should serve a one-month notice period in accordance with the Employment Protection Act.

Severance Pay

Severance is not mandatory in Sweden. However, it might be required if stated in a collective agreement or employment agreement.

Probation Period

In Sweden, probation periods are outlined in the employee’s employment contract/collective agreement. The probationary period can be a maximum of six months. The period can be shorter and the employee can become permanently employed before the probationary period is complete. If a probationary period is not terminated after six months, the employment will automatically become permanent.

The probationary period must be stated in the employment contract. The employee needs to be informed two weeks at the latest before the period ends if he or she will be permanently employed. Salaries and other benefits are the same during a probationary period.

Common Benefits


  • Private pension (5-10% employer contribution)
  • Private health insurance allowance
  • Life insurance
  • Car allowances
  • Home office allowances
  • Gym allowance
  • Meal allowance



Generally, citizens from countries outside the EU must apply for a work permit to work in Sweden. There are a few exceptions to the rule. Citizens of Australia, Canada, Hong Kong, Japan, New Zealand, and South Korea aged 18–30 can also apply for a working holiday visa for up to one year.

For employment that lasts less than three months, citizens of certain countries must have a work permit and a visa.
To qualify for a work permit, you must have received an official offer of employment from a Swedish employer. The job must also:

  • Have been advertised in the EU/EEA for at least ten days
  • Offer terms of employment that match those set by Swedish collective agreements or those that are customary within the occupation or industry
  • Pay a minimum monthly salary of SEK 13,000 before taxes

You must also hold a valid passport in your home country.



The standard rate of VAT in Sweden is 25.00%.

Stay up to date on payroll & employment law changes

Version History

September 29, 2022
“Other Leave” has been updated. In Sweden, there may be several types of ‘other’ leave entitlements available as detailed in the respective collective bargaining agreement/employment contract. This leave is to be approved by the employer and is applicable to members of the employee’s family and close relatives.
May 31, 2022
Payroll contributions and personal income tax rates have been updated.

Questions & Answers

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T. Davis
T. Davis
2 years ago

In a dismissal, is it lawful to give an employee compensation instead of a notice period?

Alex Margolin
Alex Margolin
2 years ago
Reply to  T. Davis

The Employment Protection Act (EPA) applies, including the length of notice in a termination, which ranges from one month for an employee at the company up to two years, to six months for someone with 10 years of service. However, it is possible to come to a mutual agreement where the employee accepts compensation instead of the notice period. The choice belongs to the employee.

Keith H.
Keith H.
2 years ago


What are the current laws of the short-term work allowance if an employer needs to reduce an employee’s work hours?


Erez Greenberg
Erez Greenberg
2 years ago
Reply to  Keith H.

Hi Keith, Until June, employers who are eligible can reduce an employee’s working hours by 20%, 40%, 60%, or 80%. The central government provides financial assistance depending on the number of reduced working hours throughout the period. For full details visit

1 year ago


is there any place to see which benefits in kind are tax-free?

Emily Kuhnert
Emily Kuhnert
1 year ago
Reply to  MCS

Hi, thank you for your question. You can find this information on the Swedish tax authority website. In general, though, business expenses, mileage allowance, and occupational pension are tax-free, all other benefits are generally taxable.

Jane Webster
Jane Webster
1 year ago

Hi, can we ask for a voluntary hours/salary reduction in Sweden? If so, please where could I find the information? We cannot claim for short time working, as we previously claimed during Covid.

Emily Kuhnert
Emily Kuhnert
1 year ago
Reply to  Jane Webster

Hi Jane, thank you for your question. While the Short-Time Work Allowance has expired, you may request to reduce your work hours (and receive a pay reduction) with your employer, however, they are not obligated to agree. If a reduction is approved, a written agreement must be in place.

Jane Webster
Jane Webster
1 year ago
Reply to  Emily Kuhnert

thank you very much!

Tim Cestnick
Tim Cestnick
1 year ago

Canadian Employer with Swedish Employee: we are a Canadian company with an employee who has worked for us for two years. The employee decided to move home to Sweden. The employee is able to work remotely and so we have asked him to continue working for us from Sweden. We want to comply with all Swedish laws. What is the best way to structure this arrangement? Should the employee set up a corporation and invoice us through his company as a contractor? Should we continue to employ him as an employee? We want to keep things as simple and low-cost for both sides as possible.

Last edited 1 year ago by Tim Cestnick
Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Tim Cestnick

Hi Tim, Continuing to employ on a Canadian employment contract is not the correct setup.

You have a few options:
1. Set him up as a contractor (though this might not be the most compliant way as it sounds like he would be misclassified)
2. EOR model
3. Set up an entity

It would be best for you to speak with a sales rep to find out which solution is the right fit for you.

1 year ago

How much time does my employer have to pay me after I’ve worked? (i.e., how long can they hold funds?) I know most are paid monthly, but is there a legal amount of time they have to pay?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Elizabeth

Hi Elizabeth, your monthly payment should be made no later than the date that applies to your workplace and is specified in your contract. Monthly payments are typically paid by the 25th of each month.

Keith Manning
Keith Manning
1 year ago

Is there provision for an employer to gross up the value of a benefit in kind and pay all costs rather than it being treated as a benefit in kind.
Thank you.

Erez Greenberg
Erez Greenberg
11 months ago
Reply to  Keith Manning

With regards to the common benefits, we can include expenses, etc. within the monthly payroll as additional gross allowances. These benefits are taxable in Sweden and so we would simply add a sum to the monthly gross salary in order to cover the cost of each benefit. The employee is then free to choose whichever provider they like and make monthly net contributions to each provider accordingly.

Suzie Yong
Suzie Yong
1 year ago

what is the mandatory min payment an employer needs to make to pension in Sweden?
We understand that 30% for higher earners is the standard (though trying to understand whether this is a mandatory amount). OUr employees are not subject to a CBA yet.

Erez Greenberg
Erez Greenberg
11 months ago
Reply to  Suzie Yong

The average contribution is around 4.5% of income up to 41,000 SEK per month and then around 30% of income over 41,000 SEK per month.

Chloe Konig
Chloe Konig
11 months ago

Hello, do you know if there is any benefit for a company in Sweden to offer a public transportation allowance to its staff, or is it taxed at the same level as any other income ?

Erez Greenberg
Erez Greenberg
10 months ago
Reply to  Chloe Konig

If an employee uses public transportation to go to and from work, then the travel fee should be tax-free.

10 months ago

Hi, if I am coming to Sweden based on marriage to Swedish citizen (residence permit) do I have right for monthly unemployment benefits until I find job?

Erez Greenberg
Erez Greenberg
10 months ago
Reply to  Nejla

It is necessary to have worked enough hours in order to be eligible for unemployment benefits. Currently, Sweden’s minimum requirement is:
-a minimum of 60 hours of work in six of the last 12 months
-or at least 40 hours per calendar month and 420 hours in total during a consecutive period of six months in the past 12 months.

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Payroll and Benefits Guide
in Sweden

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

Sweden 2023
Day Date Holiday Notes
Sunday Jan-1 New Year's Day
Friday Jan-6 Epiphany
Friday Apr-7 Good Friday
Monday Apr-10 Easter Monday
Monday May-1 Labour Day
Thursday May-18 Ascension Day
Tuesday Jun-6 National Day
Friday Jun-23 Midsummer Day
Monday Dec-25 Christmas Day
Tuesday Dec-26 St Stephen’s Day