What you'll learn
Sweden is a nordic country in northern Europe bordered by Norway and Finland, and connected to Denmark by a bridge–tunnel across the Öresund.
The country lies west of the Baltic Sea and Gulf of Bothnia, providing a long coastline. Sweden has a strong economy and ranks very highly in terms of quality of life, education, health, protection of civil liberties, income equality, gender equality, prosperity, and human development.
Employment Terms
Types of Contracts
- Indefinite
- Fixed Term
- Open-ended contracts
Working Hours
The maximum normal working hours in Sweden is 40 hours, plus 8 hours of overtime per week. The overtime payment rate is normally agreed with the employer, and extra hours can also be converted into extra holidays.
Minimum Wage
There is no national minimum wage in Sweden, and it is usually set by industry. The average salary is around SEK 188 per hour.
Probation Period
The maximum probation period length in Sweden is 6 months.
Taxes & Local Employment Costs
Employee Taxes
Income up to SEK 613,900 is taxed at 0%, and income over SEK 613,900 is taxed at 20% via the Progressive National Income Tax. The Municipal Income Tax is 32%.
Employer Taxes & Contributions
- 3.55% - Health Insurance
- 2.6% - Parental Insurance
- 10.21% - Retirement Pension
- 0.6% - Survivors Pension
- 2.64% - Labor Market Fee
- 0.2% - Occupational Injury
- 11.62% - General Payroll Tax
Types of Leave
Annual Leave (Vacation)
Employees in Sweden are entitled to 25 days of paid time off each year (after completing 1 year of work at their company). Leave is accrued at 2.08 days per month, and emplpoyees can carryover 5 days into the next year.
Sick Leave
Employees in Sweden are entitled to sick leave, which is paid at 80% of the salary for the first 14 days by the employer, and any sick beyond that is unpaid and requires the employee to apply for social insurance benefits.
Maternity Leave
Employees in Sweden are entitled to a total of 14 weeks of maternity leave, usually 7 weeks before childbirth and 7 weeks after childbirth. It is obligatory to allocate a minimum of 2 weeks of maternity leave before and after the baby's delivery.
Paternity Leave
Employees in Sweden are given 10 working days for paternity leave.
Parental Leave
Parents also collectively receive 480 days of leave, which can be utilized from the child's birth until they reach 12 years of age. Compensation during parental leave is generally paid at 80% of their regular salary by the Swedish government.
Public Holidays
- New Year’s Day - January 1
- Epiphany - January 6
- Good Friday - Friday before Easter Sunday
- Easter Sunday - Moveable date
- Easter Monday - Day after Easter Sunday
- International Workers' Day/May Day - May 1
- Ascension Day - Thursday, 39 days after Easter Sunday
- Whit Sunday - 7th Sunday after Easter
- National Day of Sweden - June 6
- Midsummer's Day - Saturday between June 20-26
- All Saints' Day - Saturday between Oct 31-Nov 6
- Christmas Day - December 25
- Second Day of Christmas - December 26
Termination Process
Termination Process
To terminate an employment contract, employers must provide a clear, just reason for the termination, as well as sufficient notice.
There is also usually a termination clause in the employment agreement that is mutually agreed by the employer and the employee - the mutual termination clause allows both parties to terminate the agreement any time, and a special document should be signed specifying the payments, end date, etc.
Notice Period
Notice periods depend on what is stipulated in the employment contract, and are usually between 1 month and 6 months (for more senior employees). During probation, the notice period is 14 days.
Severance Pay
There is no law requiring employers to provide severance pay, however collective agreements may have their own requirements.
Additional Information
N/A
