To onboard employees from Sweden, the employer should be knowledgeable about the Employment terms, Labor laws, deductions, and benefits. This section has all the necessary information that employers can use.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
The employer has to provide the employee with a written employment contract. According to Swedish laws, the contract must contain all the terms and conditions and the employer’s information. There is no statutory language preferred in Sweden’s employment contract. Employers must ensure that the contracts are in a language that is understood by all of the parties involved.
Probation Period
The probation period in Sweden will be based on the collective agreement.
13th Month Pay
There is no specific provision for a 13th-month salary in Sweden.
Employee Benefits
Employers in Sweden may provide the following benefits to their employees:
- Sickness & Disability.
- Private medical insurance.
- Life insurance.
- Work injury insurance.
The employee in Sweden must be paid monthly.
The new minimum salary, effective October 1, 2023 will be SEK 22,203 per month. For employees with secondary education, the minimum wage will be SEK 24,456.
Employees are allowed to work for a maximum of 50 hours of overtime in a month and the employee is usually paid at a rate of 50% to 100%.
Employer Payroll Cost:
| Category |
Contribution |
| Social Security |
0.3142% |
Employee Payroll Cost:
| Category |
Contribution |
| Pension |
7% (upto SEK 40,100) |
Employee Income Tax
| Annual Taxable |
National Income Tax |
Municipal Income Tax |
| From 0 to 540,700 |
0.0 |
0.32 |
| Over 540,700 |
0.2 |
0.32 |
VAT
The standard VAT rate in Sweden is between 6% and 25%.
A notice may or may not be given when terminating an employee in Sweden. However, employers must have a clear and justifiable basis for making the decision.
The Notice Period in Sweden will be up to 6 months.
Severance pay
Sweden does not have mandatory severance pay provisions, unless expressly agreed in an employment contract or collective agreement
There are seven types of Swedish work visas that foreign employees may apply for based on the purpose and duration of their employment. Below are the following:
- Sweden Work Permit
- Intra-company Transfer
- Business Visa
- Self-employment visa
- Working Holiday visa
- EU Blue Card