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Swedish Krona (SEK)
32.42% – Social security contributions
Swedish
10.6 million
Monthly
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring employees in Sweden offers several advantages and some challenges. On the positive side, Sweden has a highly educated, skilled, and multilingual workforce, known for its strong work ethic and expertise in technology, engineering, and innovation. The country’s stable economy and advanced infrastructure further enhance the business environment, making it easier for companies to operate efficiently. Additionally, Sweden’s commitment to work-life balance and employee welfare can lead to high levels of employee satisfaction and productivity.
However, there are challenges, such as the high cost of labour, including substantial employer social contributions and taxes, which can increase overall employment costs. Additionally, Sweden’s strict labour laws, particularly around job security and employee rights, can make it difficult and costly to terminate contracts. This regulatory framework, while beneficial for workers, requires careful navigation by employers to avoid legal complications. Overall, Sweden offers access to top talent but demands a thorough understanding of its employment laws and cost structures.
Employers should consider hiring remotely in Sweden due to the country’s exceptional digital infrastructure and a workforce that is well-versed in remote working practices. Sweden consistently ranks high in global connectivity and internet speed, making it an ideal location for seamless remote collaboration.
The country’s cultural emphasis on innovation and autonomy aligns well with remote work, where employees are typically self-motivated and accustomed to flexible working environments. Additionally, by hiring remotely in Sweden, companies can tap into a diverse pool of highly skilled professionals without the need to navigate the higher costs and regulations associated with physical operations in the country. This allows businesses to benefit from Sweden’s talent while maintaining flexibility in their operations.
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Pension contributions
Workplace insurance
A maximum of 6 months
Emerald Technology can onboard employees in Sweden within 48 hours.
A minimum of 60 days before the child’s birth and 29 days afterwards, paid by social security at around 80% of the salary.
An additional 10 days outside of parental leave.
Employees are entitled to a total of 480 days of parental leave, which can be used until the child turns 8 years old. This leave is shared between both parents and can be split into up to three separate periods within a calendar year. Both parents can take leave simultaneously, known as “double days,” for up to 60 days, but these double days must be used before the child reaches 15 months. If parents share joint custody, they can each transfer 45 days of their leave to another person who is eligible for parental leave. In cases of sole custody, the parent can transfer up to 90 days to another insured individual.
2 – 14 days are paid at 80% of the salary by the employer. Beyond this period a percentage of the salary is covered by social security for up to 90 days.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
30 days if employment is less than two years. | |
60 days if employment is between two and four years. | |
90 days if employment is between four and six years. | |
120 days if employment is between six and eight years. | |
150 days if employment is between eight and ten years. | |
180 days if employment is more than ten years. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
There are no laws for severance pay in Sweden. |
25 days per year for a full-time employee.
There is no National minimum wage in Sweden.
40 hours (five days of eight hours)
Overtime payment Is not mandatory in Sweden and can be included in the salary. Employees can work a maximum of 150 hours per year.
Monthly
There is no law suggesting any bonuses are necessary.
| Annual Income (SEK) | Tax Rate |
| Up to 20,200 SEK | 0% |
| 20,201 – 537,200 SEK | 30% (municipal tax) |
| Over 537,200 SEK | 30% (municipal tax) + 20% (state tax) |
Health Insurance in Sweden is publicly funded by the government and through taxes which ensures all citizens and legal residents receive necessary medical services, such as primary care, specialist care and hospitalisation. There is no mandatory health insurance as residents are automatically covered by the system. However, employers contribute to the system through payroll taxes.
Similar to other countries, Sweden has strict rules on classifying individual contractors and full-time employees differently. Misclassifying your workers can put your business at risk of fines.
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