As your EOR in Sweden, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Your candidate is hired by a PEO in Sweden provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team.
Approximately 10 million people populate Sweden, located in Northern Europe. It is known for its high standard of living, social welfare system, and natural beauty.
The Swedish economy is characterized by a highly skilled workforce, a strong manufacturing sector, and a thriving technology industry. The country has a robust social welfare system, which provides universal health care, free education and generous social benefits.
When it comes to employment contracts: it’s crucial that they be in writing and specify the terms and conditions of the employment relationship. This includes the job description, salary, working hours, and contract length. Contracts can be either fixed-term or indefinite.
The maximum is six months for indefinite contracts and two years for fixed-term contracts. During this time, the employee or the employer can terminate the agreement with just one week’s notice.
The standard work week in Sweden is 40 hours with a maximum of 48 hours per week. Overtime pay is required for any hours worked beyond 40 hours a week. It’s also worth noting that employees are entitled to a minimum of 11 hours of rest between each workday.
Swedish law requires employers to offer at least 25 days of paid vacation per year. Additionally – employees are entitled to 16 paid public holidays per year.
In Sweden, employees are entitled to up to 80% of their salary during periods of sick leave for a maximum of 364 days. The first day of sick leave is usually unpaid, but some employers may offer paid sick leave from day one.
In Sweden, employees are typically paid monthly, with the standard work month comprising 173 hours. The minimum wage in Sweden is set at ~SEK 30,000 per month.
Sweden has 13 national public holidays, including New Year’s Day, Easter, Midsummer’s Day, and Christmas. Employees are entitled to paid time off on these holidays.
Employer taxes in Sweden include a social security tax, currently set at 31.42% of an employee’s salary, and a pension contribution, typically around 4.5% of an employee’s salary.
Employee taxes in Sweden include a progressive income tax ranging from 0% to 57.1%, depending on the employee’s income level. A social security tax is deducted from an employee’s salary.
Both employers or Sweden EOR, and employees must give notice before terminating an employment contract. The notice period depends on the employee’s employment duration with a minimum notice period of one month for employees who have been with a company for less than two years.
In Sweden, employees are generally entitled to severance pay if the employer terminates their employment unless the termination is due to the employee’s misconduct. The amount of severance pay depends on the length of the employee’s employment and salary.
