Social insurance: 31.42%, which includes General payroll contribution, Retirement, Health insurance, Labour market fee, Parental Insurance, Survivors Pension, and Work Injury
Paid time off: 25 days + bank holidays
Paternity leave: 10 days
Sick leave: 90 days. The first 14 days are covered by the employer and the reminder by Försäkringskassan (the Swedish social insurance office), for which the employee has to apply
Parental leave: 480 days
Maternity leave: 14 weeks
HQ country employment & payroll
Independent contractor agreements
Direct local employer setup
Employment through a local entity established by an Employer of Record for the purposes of employment
Setting up a local company in Sweden is relatively straightforward. However, the difficult part comes after the initial setup when payroll needs to be calculated and run every month, taxes filed, benefits extended, change of rules and regulations followed. Here is an overview of everything an employer in Sweden needs to do for their Sweden employees.
As with every other country, certain costs are associated with employing a worker in Sweden that come on top of the gross salary you are offering. A Swedish employer must make social security contributions based on each employee’s total taxable remuneration monthly. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
While an Employer of Record is the most typical way for legally employing a worker in a different country where the company doesn't have an entity, in Sweden, the model doesn't exist. Instead, an Employer of Record directly employs a worker through a company specifically established for that purpose. The employee then provides their services to the client company. We are responsible for:
In , both employers and employees have to pay taxes. Swedish employers make social security contributions, which includes General payroll contribution, Retirement, Health insurance, Labour market fee, Parental Insurance, Survivors Pension, and Work injury. Employees make pension contributions, and pay national income tax and municipal income tax. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.