Hiring in Sweden gives you access to a highly skilled workforce in one of Europe’s most innovative economies. It’s a compelling destination for global employers — if you can navigate the country’s labor laws and collective bargaining agreements (CBAs).

A Sweden employer of record (EOR) hires and manages talent for you, so you don’t have to navigate local requirements. As a global EOR, G-P handles everything on your behalf, from contracts to payroll. With G-P, you can hire top talent in more than 180 countries, including Sweden, without setting up a local entity.

Simplify hiring in Sweden with an employer of record

You need local expertise to navigate Sweden's labor regulations — such as the Employment Protection Act (Lagen om Anställningsskydd, or LAS) — and CBAs.  

With an EOR, you don’t need to establish a local entity to hire in Sweden. A Sweden EOR, like G-P, acts as the legal employer and takes care of the entire employment lifecycle, from onboarding to offboarding.

The EOR hiring process in Sweden:

  1. Partner with a global employment expert. Choose an EOR with deep expertise in Sweden as they’ll guide you through the local legal landscape.

  2. Source your ideal candidate. You find the best talent, and the EOR handles the rest.

  3. Generate a compliant employment contract. Your EOR drafts a locally compliant contract in line with Sweden’s labor laws, including salary, working hours, and notice periods.

  4. Onboard and manage your team. The EOR manages the entire employment lifecycle. This includes managing your team members’ payroll and administering benefits

Employment contracts in Sweden

Verbal agreements are legal, but employers must give employees the main terms in writing within seven days of starting work. The main job terms include compensation, benefits, duties, and termination requirements. 

We recommend stating compensation in Swedish krona (SEK), but this is only a legal requirement for work permit applications or for employees who aren’t Swedish citizens or permanent residents. 

As your EOR in Sweden, G-P ensures all employment contracts comply with the country’s labor law and any applicable CBAs.

Read more about using an EOR for employment contracts.

Leave entitlements in Sweden

Working hours in Sweden

The Working Hours Act (Arbetstidslagen) sets the standard workweek at 40 hours. Employees get at least 11 consecutive hours of rest between workdays and 36 hours of rest every seven days.  

General overtime is capped at 200 hours per year. However, an additional 150 hours of "extra overtime" is allowed under special circumstances. The Working Hours Act doesn’t regulate overtime pay rates or time off. The applicable CBA or individual contract sets this out. Overtime is usually paid at a 50–100% premium. 

Public holidays in Sweden

Employees in Sweden get 13 paid public holidays. Certain days — like Midsummer Eve, Christmas Eve, and New Year's Eve — are also treated as holidays, with most employees getting a full or partial day off, depending on their contract or relevant CBA.

  • New Year's Day

  • Epiphany

  • Good Friday

  • Easter Sunday

  • Easter Monday

  • Ascension Day

  • Labor Day

  • Whit Sunday*

  • National Day

  • Midsummer Day

  • All Saints' Day

  • Christmas Day

  • Second Day of Christmas

*This holiday always falls on a Sunday, so it doesn’t result in an extra day off work for most employees.

Vacation days in Sweden

The Annual Leave Act (Semesterlagen) gives employees at least 25 days’ annual leave. Paid leave is accrued during the "qualifying year" (April 1–March 31) and can be taken in the following "holiday year" (also April 1–March 31). Most employers let employees take paid leave from their first year of employment, often by advancing paid leave (called förskottssemester). 

Sick leave in Sweden

Employers or the Swedish social insurance agency pay for sick leave (Försäkringskassan), depending on how long an employee is sick for.

  • Day one: The employer deducts 20% of the employee’s average weekly pay (called karensavdrag). This means that employees typically aren’t paid on day one of sick leave.

  • Days two to 14: The employer pays 80% of the salary.  Employees must have a doctor’s note from day eight of sickness. 

  • Day 15 onwards: Försäkringskassan pays the sickness benefit, as long as the employee is covered by Swedish social insurance. Employees get about 80% of their qualifying income, up to a maximum.

Parental leave in Sweden

Sweden has one of the world's most generous parental leave policies. 

Parents share 480 days’ leave per child. Of these days, 90 are reserved for each parent and can’t be transferred. The leave days can be used until the child turns 12 or finishes their fifth school year.

The birthing parent can start their leave up to seven weeks before the due date. The non-birthing parent also gets 10 days’ leave around the time of birth. These 10 days are separate to the 480 days of parental leave.

Swedish social insurance pays a parental benefit. For the first 390 days, it’s paid at about 80% of the employee's income, up to an annual income cap of SEK 592,000 for 2026. 

The remaining 90 days are paid at a flat rate. Employers aren’t legally required to top up this benefit, but it’s a common practice covered by many CBAs.

How an employer of record in Sweden helps manage leave entitlements

A Sweden EOR ensures you comply with local leave laws by managing entitlements like annual and sick leave. They also handle parental leave, so you don’t have to.

Health insurance and supplementary benefits in Sweden

Sweden has high-quality, universal healthcare for all residents. However, private health insurance is becoming a common supplementary benefit as it offers faster access to specialists and certain treatments. 

Other supplementary benefits include:

  • Occupational pension (tjänstepension): This isn’t mandatory, but about 90% of employees are covered for this benefit through CBAs, making it standard. Occupational pensions are private employment-based schemes separate from the state pension. Employers usually contribute 5–10% of an employee’s gross salary. 

  • Optional extras: Some companies provide meal vouchers, stock incentive plans, or extra annual leave days. Extra vacation time is a common supplementary benefit, especially for senior staff or as part of CBAs. 

Bonuses in Sweden

Employees get a vacation pay supplement (semestertillägg). Monthly salaried employees typically get 0.43% of their monthly salary per vacation day. Employees with variable pay get 12% of their total earned income from the previous year. 

How an employer of record helps with benefits in Sweden

A Sweden employer of record manages and administers mandatory and supplementary benefits on your behalf. Using a Sweden EOR ensures you offer competitive benefits to attract top talent while complying with local labor laws.

Termination and severance in Sweden

Probation can be up to six months. The employer must give at least two weeks’ notice and notify the employee’s union if they terminate during this period. The employee can resign with immediate effect, unless otherwise agreed in the contract or CBA.

After probation, termination must be based on objective reasons (sakliga skäl), such as redundancy, misconduct, or performance. Legal notice periods increase with length of service, starting at one month and reaching a maximum of six months for employees with 10 or more years of service. 

Severance isn’t mandatory, but employees get full pay and benefits during their notice period. Not following correct termination procedures, including consulting trade unions if needed, can lead to legal and financial consequences.

A Sweden EOR ensures compliant termination and offboarding, so you don’t need to worry about legal risks.

Payroll and taxes in Sweden

Employers contribute to employee social security payments. The social security contribution is 31.42% of the employee's gross salary and includes:

  • Pension insurance (old-age pension) 

  • Health insurance (sickness benefits) 

  • Parental insurance (parental leave benefits) 

Employees earning more than SEK 643,000 a year pay a national income tax of 20%. They also pay a municipal income tax, which is around 32% of their salary, depending on where they live.  

Nonresidents working in Sweden usually pay a 22.5%% “SINK tax” (särskild inkomstskatt för utomlands bosatta or "special income tax for nonresidents”). This tax decreases to 20% in 2027.

Employers withhold and pay all of these taxes to Sweden tax authorities. 

A Sweden EOR handles all aspects of payroll management. This includes withholding tax and remitting mandatory social security contributions. 

Choosing the right EOR in Sweden

When selecting an employer of record in Sweden, consider the following:

  • Compliance expertise: The EOR should have in-depth knowledge of Sweden’s labor laws, including the Employment Protection Act (Lagen om Anställningsskydd), CBAs, and local tax regulations. This ensures that all employment practices, from contracts to termination, are fully compliant.

  • Comprehensive service offering: A best-in-class EOR partner should manage all aspects of employment, including payroll processing, tax remittances, benefits administration, leave management, and offboarding procedures.

  • Local market understanding: Look for an EOR with a strong local presence or proven experience in Sweden. Understanding market norms and cultural nuances can impact employee experiences.

  • Scalability and flexibility: The EOR should be able to accommodate your hiring needs, whether you're hiring a single employee or a global team, and scale with your global expansion strategy.

  • Technology and integration: An AI-powered platform simplifies onboarding, benefits management, and payroll. Confirm that the EOR integrates with existing HCM, PEO, or payroll systems to avoid operational delays.

  • Transparency and communication: Choose an EOR that offers clear communication channels, transparent pricing, and regular updates on compliance changes.

  • Reputation and references: Research the EOR's reputation, customer testimonials, and industry recognition to ensure they have a track record of reliability and success.

  • Data security and compliance. Ensure your EOR follows strict data security protocols like GDPR. This is critical for protecting sensitive employee information and maintaining compliance.

Use G-P EOR for global hiring in Sweden

G-P EOR is the award-winning, AI-enabled global hiring solution that empowers startups, SMBs, and enterprise businesses to build global teams with ease. Onboard, manage, and pay top talent in over 180 countries in minutes, without the complexity of local entity setup. 

G-P EOR is the preferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while keeping consistent and accurate data across your integrated systems.

Request a proposal to start hiring in Sweden today.