Employer of Record (EOR) Sweden

Expand your team in Sweden without the hassle of setting up a local entity—Hire, Onboard, and Pay employees with complete compliance through Globaine.
  • Transparent & Compliant
  • World-Class Expertise
  • Cost-Efficient

Start Hiring in Sweden

Simple & Compliant Hiring with Globaine's Employer of Record (EOR)

Hire in Sweden with Confidence 
Globaine takes care of all compliance matters, including payroll, taxes, and legal obligations, while providing seamless hiring processes. Our platform ensures that every aspect of employee management in Sweden is handled efficiently and in full compliance with local regulations.

Fast Time-To-Hire

Onboard employees in as little as 12 hours.

Cost-Efficient

The most affordable solution on the market, saving you time and money.

Compliant Contracts

We draft bilingual contracts compliant with Swedish labor law.

Global Reach, Local Expertise
Hire not just in Sweden, but in over 180 countries through our global platform, allowing you to grow internationally without entity setup. Globaine’s team provides the local expertise you need to ensure every hire is compliant, efficient, and hassle-free.

Jump to

HIRING

in Sweden

In Sweden, writtenemployment contracts are required for all formal employment relationships. The contract must outline the key terms of employment, including salary, job responsibilities, working hours, and benefits. The contract should also specify the probationary period if applicable.

A written contract is required for all permanent and temporary employment relationships in Sweden. The contract should be signed before the employee starts working to ensure legal protection for both the employer and the employee.

Salaries in Sweden should be stated in Swedish Krona (SEK) and must clearly outline the gross monthly salary. Employment contracts typically specify salary payments on a monthly basis, with any bonuses or additional benefits clearly outlined.

In Sweden, contracts often include clauses for confidentiality, non-compete, and non-solicitation. These clauses are especially important for employees working in sensitive or strategic roles. The terms of these clauses must be reasonable and in line with Swedish labor laws to ensure their enforceability.

ONBOARDING

in Sweden

1. What are the key steps in employee onboarding in Sweden?

Key steps for onboarding employees in Sweden include registering with the Swedish Tax Agency (Skatteverket) for a personal identification number (personnummer), signing the employment contract, and setting up social security benefits. Employers must also ensure that new hires receive a thorough introduction to company policies and workplace health and safety requirements.

2. When should employees complete pre-hire medical checks in Sweden?

A pre-hire medical check is generally not mandatory unless the job requires specific physical capabilities or the role is in certain regulated industries, such as healthcare. In such cases, employers are responsible for ensuring the employee is fit for the role.

3. What documents are required for onboarding in Sweden?

Employees must provide a valid Swedish personnummer (or an equivalent identification number if non-Swedish), proof of identity (passport or national ID card), and a signed employment contract. These documents are essential for processing payroll and ensuring legal compliance.

PAYROLL

in Sweden

Salaries in Sweden are generally paid on a monthly basis, with many companies offering annual bonuses or additional compensation based on company performance. Salaries must comply with the Swedish national collective bargaining agreements or specific industry agreements that may set minimum wages.

For remote employees, the employer must ensure that all applicable social security contributions are made and that the employee is provided with the necessary tools to perform their job. If remote employees incur extra costs (such as for a home office setup), employers may be required to reimburse them or offer allowances.

Sweden does not have a national minimum wage. Instead, wages are determined by industry-specific collective bargaining agreements between employers and trade unions. These agreements ensure that employees are compensated fairly, and employers must comply with the terms outlined in the relevant agreements.

In Sweden, the 13th and 14th-month salaries are not mandatory by law. However, they are commonly included in collective bargaining agreements, especially in certain industries. These extra payments are typically made during the holiday seasons, with amounts often equivalent to one month’s salary each.

TAXES

in Sweden

1.What are the income tax rates in Sweden?

Sweden employs a progressive tax system for income tax, with rates ranging from approximately 32% to 57%, depending on the income level. The rate is made up of municipal and national taxes, with higher earners paying a greater percentage.

2. When should tax returns be submitted in Sweden?

Tax returns for employees must be submitted annually by May 2nd for the previous year. Employers must withhold income tax throughout the year and report these payments to the Swedish Tax Agency.

3. How does the tax system apply to non-residents in Sweden?

Non-residents are taxed on Swedish income, but they are typically taxed at a flat rate of 25%. Non-residents who have a tax residence in Sweden for part of the year may be subject to higher rates based on their total income.

4. What social security contributions are required in Sweden?

In Sweden, employers contribute 31.42% of an employee’s salary to social security, which covers pensions, healthcare, and other social benefits. Employees contribute around 7% through payroll deductions.

LEAVE

in Sweden

Employees in Sweden are entitled to a minimum of 25 days of paid annual leave, with some collective agreements offering more. Employees accrue their leave throughout the year, with full entitlement after one year of employment.

Employees can start using their accrued leave after they have completed six months of employment. Leave is generally taken during the summer months but can be taken at any time by mutual agreement between the employer and employee.

Sweden offers generous parental leave, with mothers receiving 480 days of paid leave, which can be shared between parents. Fathers are encouraged to take at least 90 days of paid leave. Both parents are compensated at around 80% of their salary, subject to certain caps.

Sweden has several public holidays, including Christmas, Easter, Midsummer, and New Year’s Day. Employees are entitled to a paid day off for these holidays, although some industries may require employees to work on holidays, in which case additional pay or time off must be provided.

BENEFITS

in Sweden

1.What benefits are mandatory in Sweden?

Employers in Sweden must provide several benefits, including paid annual leave, paid sick leave, and parental leave. Social security contributions, which fund healthcare and pensions, are also mandatory.

2. How is the home office allowance structured in Sweden?

While there is no official home office allowance, many companies in Sweden offer support for remote work by providing equipment and contributing to home office expenses. Employers can choose to reimburse employees for work-related costs such as internet and electricity, but these payments must comply with tax regulations.

3. When should meal allowances be provided in Sweden?

Meal allowances are not mandatory in Sweden. However, many companies offer meal vouchers or a daily allowance for meals if employees are required to work beyond normal hours or in specific work settings.

4. What additional benefits are common in Sweden?

Common benefits in Sweden include private health insurance, wellness allowances (to promote employee well-being), and transportation allowances. These benefits are not legally required but are widely used to attract and retain employees.

TERMINATIONS

in Sweden

Notice periods in Sweden vary based on the length of employment, typically ranging from one to six months. The notice period must be agreed upon in the employment contract and comply with Swedish employment law.

Employees can be terminated without notice if they commit a serious breach of contract or engage in misconduct. However, termination without notice must be justified, and the employee has the right to appeal the decision.

Employees who are terminated are entitled to severance pay based on the length of their employment. The severance amount is determined by collective agreements or individual contracts, but it is typically at least one month’s salary for every year of service.

In Sweden, mutual termination occurs when both the employer and employee agree to end the employment contract without formal dismissal procedures. It typically involves negotiations and may include severance pay or other terms. Mutual termination avoids potential disputes and is often a more amicable solution.

FAQs

Globaine ensures compliance by staying up-to-date with Sweden’s labor laws, handling payroll, taxes, and legal obligations, and providing contracts that adhere to Swedish regulations.

Globaine’s EOR solution eliminates the need for establishing a local entity, reducing setup costs, legal fees, and ongoing administrative expenses, while ensuring compliance with local regulations.

Globaine guarantees quick onboarding by utilizing a streamlined process that includes pre-established agreements, automated systems for document management, and a local expert team ready to onboard employees efficiently.

Yes, Globaine handles complex scenarios by offering bilingual contracts, managing terminations in accordance with Swedish law, and ensuring that all employee rights and legal requirements are upheld.

Risks include non-compliance with Swedish labor laws, mismanagement of payroll and taxes, and potential legal disputes. Globaine mitigates these by managing all legal requirements, ensuring compliance, and offering expert support throughout the employment lifecycle.

Employer of Record (EOR) Sweden

Need assistance with hiring or managing employees in

Sweden?

Reach Out to Our Experts today and hire with confidence!
Consult an Expert