Currency: Swedish Krona (SEK)

Capital: Stockholm

Official language: Swedish

Payroll Cycle: Monthly

Paid Time Off

In Sweden, employees are entitled to 25 vacation days per year (2.08 days per month), without any deduction on salary, after 12 months working at the company.

Vacation accrual is mandatory, and accounts 12% of the gross salary of the employee.

‍

Public Holidays

• New Year’s Day
• Epiphany
• Good Friday
• Easter Monday
• Labor day
• Ascension Day
• National Day
• Midsummer’s Day
• All Saints Day
• Christmas Day
• St Stephen’s Day
• 2nd Day of Christmas

Additional regional holidays may also apply.

Individual Income Tax

The individual income tax ranges up to 20% and depends on many variables, such as marital status, level of income, etc.

‍

Employer Cost

Approximately, 31.42% of employee salary

Employment Contract Details

Employers are required provide to the employe certain information in writing.

Probation Period

The maximum probation period is 6 months.

Minimum Wage Requirements

There are no statutory regulations on minimum wages in Sweden

Maximum working hours and overtime

Normal working hours are generally 8 hours per day and 40 per week.

Parental Leave

Parents have a shared entitlement of up to 480 days’ leave per child, with 90 days reserved for each parent. The remaining days may be transferred from one to parent to the other. Parental allowance is paid directly by the state. Parents receive 80% of regular salary for 390 days. The other 90 days is paid at a flat rate.

• Mothers receive 240 days of paid leave with the right to start 60 days before the expected birth.
• Paternity leave: can take 10 days’ paternity leave either before or after the birth of the child.
• Fathers are entitled to 240 days of paid leave

Sick Leave

The employer must pay sick leave from the first day until the 14th day, in this period the salary will reduced 20%. After this period, the government will be responsibility will be of the government.  This authority will pay from the 15th day up to the 90th day of the sick leave.

To terminate a contract, the employer must give a justification in writing to the employee. According to the collective agreement, the employer may have to Employment Service of Sweden.

Severance pay is not mandatory, however it is advisable to include a severance payment in addition to notice for mutually-agreed or negotiated terminations.

‍

Notice Period

In Sweden, the notice period is based on the length of the labor relationship:

• Up to 2 years of employment - 1 month’s notice
• 2 - 4 years of employment - 2 months’ notice
• 4 - 6 years of employment - 3 months’ notice
• 6 - 8 years of employment - 4 months’ notice
• 8 - 10 years of employment - 5 months’ notice
• 10+ years of employment - 6 months’ notice