Sweden at a glance
Taxes in Sweden
Employer Contributions
Total employer social insurance: 31.42%
| Contribution | Rate |
|---|---|
| Total employer tax | 31.42% |
| Components include: General payroll contribution, Retirement pension, Health insurance, Labour market fee, Parental insurance, Survivors' pension, Work injury insurance | Combined 31.42% |
Total employer social insurance: 31.42%
| Contribution | Rate |
|---|---|
| Total employer tax | 31.42% |
| Components include: General payroll contribution, Retirement pension, Health insurance, Labour market fee, Parental insurance, Survivors' pension, Work injury insurance | Combined 31.42% |
| Contribution | Rate |
|---|---|
| Pension | 7% |
| Total employee income tax | 30% – 50% |
National income tax:
- Income up to SEK 613,900: 0% national tax (municipal tax only)
- Income over SEK 613,900: 20% national tax + municipal tax
Municipal tax: Varies by municipality, typically 30%–35% of income.
Employer of Record in Sweden
How Remote& Works in Sweden
Standard EOR is not a recognized legal category in Sweden. Remote& directly employs your Swedish workers through a purpose-established Swedish entity, achieving the same compliant outcome — handling payroll, tax filings, statutory benefits, and employment contracts.
| Party | Role |
|---|---|
| Your Company | Manages work tasks, performance, and team direction |
| Remote& | Employs worker via Swedish entity; runs payroll, files taxes, administers benefits |
| Employee | Works for your company under a locally compliant Swedish contract |
Ask Remi:
"Hire a machine learning engineer in Sweden — SEK 75,000/month, starting Q2" Remi handles everything: contract, Skatteverket registration, payroll setup, and pension enrollment.
Benefits in Sweden
- State pension: All residents entitled to a state-financed guaranteed minimum pension
- Workers' compensation insurance: Employers must cover all employees against workplace injury
- Private healthcare plan
- Flexible and remote work
- Sabbatical leave options
- Supplementary pension
- Training and development budget
- Relocation package
- Gym membership
- Fika break culture (wellness)
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 25 days + public holidays |
| Sick Leave | First 14 days covered by employer; remainder covered by Försäkringskassan (employee must apply) |
| Maternity Leave | 14 weeks |
| Paternity Leave | 10 days |
| Parental Leave | 480 days (shared between parents) |
Employment conditions
Probation
Maximum 6 months.
Health and Safety
Sweden's Work Environment Act requires systematic work environment management (SAM), covering physical and psychosocial factors. The Work Environment Authority enforces compliance, with employee involvement through safety representatives.
Employee Rights & Protections
Swedish workers are entitled to: written employment contract, payslip, equal pay, safe and healthy working environment, reasonable accommodation, priority rights for re-employment, written job conditions, personal data protection, anti-harassment and anti-discrimination protection, and pay transparency.
Payments
End of employment in Sweden
Companies must have objective grounds (saklig grund) to dismiss employees — Swedish law does not define exhaustive grounds but requires documented justification. Notice of dismissal must be provided in writing at least 2 weeks in advance and must inform the employee of their right to priority re-employment and challenge procedures.
Before terminating for redundancy, employers must explore alternative placements within the organization.
Unemployed or partially unemployed workers receive unemployment benefits (a-kassa) for up to 300 days.
Frequently asked questions
Four routes: run payroll from HQ (legally problematic); use contractors (non-compliant for full-time exclusive workers — Swedish law is clear on this); establish a Swedish entity; or partner with Remote& for employment through our purpose-established Swedish entity. Remote& handles everything without you needing to set up locally.