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Hiring in Sweden: Employer Costs, Labor Laws and How to Hire

EMPLOYER CONTRIBUTIONS (ARBETSGIVARAVGIFTER), 2026

Swedish employers pay 31.42% employer contributions on all pay in 2026, with no ceiling, for employees born in 1959 or later. The employee pays a 7% general pension contribution. On a SEK 600,000 salary, the employer's cost is SEK 788,520 a year.

31.42%
Statutory minimum wage
None
Average monthly pay, 2025
SEK 42,900 / month
Paid annual leave
25 days
Employer contributions
31.42%

Hiring someone in Sweden? This guide covers what an employee costs, employer contributions, the labor rules that apply, pay without a statutory minimum wage, income tax, work permits and the ways a company outside Sweden can employ someone there.

Employer and employee contributions in Sweden, 2026

<table class="ert-table"><thead><tr><th>Contribution, 2026</th><th>Employer</th><th>Employee</th></tr></thead><tbody><tr><td>Sickness insurance (sjukfรถrsรคkringsavgift)</td><td>3.55%</td><td>None</td></tr><tr><td>Parental insurance (fรถrรคldrafรถrsรคkringsavgift)</td><td>2.00%</td><td>None</td></tr><tr><td>Old-age pension (รฅlderspensionsavgift)</td><td>10.21%</td><td>None</td></tr><tr><td>Survivors' pension (efterlevandepensionsavgift)</td><td>0.30%</td><td>None</td></tr><tr><td>Labor market contribution (arbetsmarknadsavgift)</td><td>2.64%</td><td>None</td></tr><tr><td>Work injury insurance (arbetsskadeavgift)</td><td>0.10%</td><td>None</td></tr><tr><td>General payroll tax (allmรคn lรถneavgift)</td><td>12.62%</td><td>None</td></tr><tr><td><strong>Employer contributions, total (born 1959 or later)</strong></td><td><strong>31.42%</strong></td><td>None</td></tr><tr><td>General pension contribution, on income up to 8.07 income base amounts (SEK 673,038 in 2026)</td><td>None</td><td>7%</td></tr><tr><td>Employees born 1938 to 1958: old-age pension contribution only</td><td>10.21%</td><td>7%</td></tr><tr><td>Employees born 2003 to 2007, pay paid 1 April 2026 to 30 September 2027, on pay up to SEK 25,000 a month</td><td>20.81%</td><td>7%</td></tr></tbody></table>

Key employment rules in Sweden

<table class="ert-table"><thead><tr><th>Rule</th><th>What the law sets</th><th>Legal basis</th></tr></thead><tbody><tr><td>Working week</td><td>Up to 40 hours a week. Overtime up to 48 hours in 4 weeks or 50 hours in a calendar month, and 200 hours a year</td><td>Working Hours Act (1982:673), 5 and 8 ยงยง</td></tr><tr><td>Rest</td><td>At least 11 hours in a row in every 24 hours, and 36 hours in a row in every 7 days</td><td>Working Hours Act (1982:673), 13 and 14 ยงยง</td></tr><tr><td>Paid annual leave</td><td>25 days a year. At least 4 weeks in a row in June to August, unless agreed otherwise</td><td>Annual Leave Act (1977:480), 4 and 12 ยงยง</td></tr><tr><td>Probation</td><td>Up to 6 months</td><td>Employment Protection Act (1982:80), 6 ยง</td></tr><tr><td>Notice</td><td>1 month minimum for both sides. From the employer: 2 months after 2 years of service, 3 after 4, 4 after 6, 5 after 8 and 6 months after 10 years</td><td>Employment Protection Act (1982:80), 11 ยง</td></tr><tr><td>Dismissal</td><td>Must rest on objective grounds: lack of work or reasons related to the employee</td><td>Employment Protection Act (1982:80), 7 ยง</td></tr><tr><td>Sick pay</td><td>The employer pays 80% of pay for the first 14 days, minus a waiting deduction of 20% of a week's sick pay. A medical certificate is needed from day 8</td><td>Sick Pay Act (1991:1047), 6 to 8 ยงยง</td></tr><tr><td>Parental benefit</td><td>480 days per child, 390 of them at about 80% of pay. Paid by the Social Insurance Agency, not the employer</td><td>Social Insurance Agency (Fรถrsรคkringskassan)</td></tr><tr><td>Retirement age</td><td>The employee has the right to stay until the end of the month they turn 69</td><td>Employment Protection Act (1982:80), 32 a ยง</td></tr></tbody></table>

How to hire in Sweden

Hiring in Sweden comes down to two decisions: who you hire, and how you employ them.

  1. Find the person. Write the role, set the salary against Swedish pay levels, then source and interview candidates. You can run the search yourself with a job post, or use a placement service that delivers a shortlist.
  2. Choose how to employ them. A Swedish entity running payroll, an employer of record or a contractor agreement. Each option is explained below.
  3. Make the offer. The contract has to meet the rules in the employment table above. Check whether a collective agreement covers the role: in Sweden these set pay floors, pensions and many other terms.

Your options for employing someone in Sweden

  • Swedish entity: you register a company in Sweden, register as an employer with the Tax Agency (Skatteverket), run payroll and pay employer contributions yourself. It suits a team of several people in Sweden.
  • Employer of record (EOR): a third-party provider becomes the legal employer and runs Swedish payroll for a monthly fee per employee. Your company directs the work.
  • Contractor: the person invoices you through their own business. The relationship has to be genuinely independent, or it can count as employment.

Euro Remote Talent does not employ people on your behalf. We handle the placement: we find and shortlist the candidate, and you employ them through the route that fits.

What an employee costs in Sweden

Take a salary of SEK 50,000 a month, or SEK 600,000 a year, for an employee born in 1959 or later. The employer pays:

  • Employer contributions: SEK 600,000 x 31.42% = SEK 188,520

The employer's cost is SEK 788,520 a year, or SEK 65,710 a month. There is no ceiling: the 31.42% applies to all pay. Occupational pension and insurance under a collective agreement come on top when the employer is bound by one, and many employers offer them anyway. The employee pays a 7% general pension contribution, or SEK 42,000.

Minimum wage and pay

Sweden has no statutory minimum wage. Pay floors are set in collective agreements between unions and employers, sector by sector. The average monthly salary was SEK 42,900 in 2025 and the median SEK 38,300, according to Statistics Sweden (SCB). See our average salary in Sweden page for pay by sector and occupation.

Income tax in Sweden

The employer withholds preliminary income tax from each salary payment. Income tax on earned income has 2 parts, for 2026:

Taxable earned income, 2026Municipal taxState tax
Up to SEK 643,000 a year32.38% on average (28.93% to 35.65%)0%
Above SEK 643,000 a year32.38% on average20% on the part above the threshold

Municipal tax goes to the municipality and region where the employee lives. ร–sterรฅker has the lowest total rate in 2026 and Dorotea the highest. State tax starts at SEK 643,000 of taxable income. For employees under 66, that is reached at SEK 660,400 of gross income, once the basic allowance is deducted.

Work permits

  • EU, EEA and Swiss citizens: do not need a work permit to work in Sweden.
  • Work permit: from 16 June 2026, a first work permit needs a salary of at least SEK 34,470 a month, 90% of the median salary. The pay must also match the collective agreement or what is usual in the occupation.
  • EU Blue Card: for highly qualified work, with a salary threshold of SEK 53,625 a month from 15 July 2026, 1.25 times the average gross annual salary. Since 1 June 2026 a Blue Card can be issued for up to 4 years at a time.

Public holidays in 2027

Sweden has 13 public holidays in 2027, but only 5 fall on a weekday. See every date on our Sweden public holidays 2027 page.

How Euro Remote Talent can help

We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299 and reach candidates who want to work remotely.

See how placement works, post a job or book a 30-minute call. Browse remote jobs in Sweden to see who is hiring there now.

Frequently asked questions

How much are employer contributions in Sweden?

31.42% of pay in 2026 for employees born in 1959 or later, with no ceiling. It is 10.21% for employees born 1938 to 1958, and 20.81% on pay up to SEK 25,000 a month for employees born 2003 to 2007, from 1 April 2026 to 30 September 2027.

Is there a minimum wage in Sweden?

No. Sweden has no statutory minimum wage. Pay floors are set in collective agreements, sector by sector.

How much paid leave do employees get in Sweden?

25 days a year under the Annual Leave Act, with at least 4 weeks in a row in June to August unless agreed otherwise.

How long is the notice period in Sweden?

At least 1 month for both sides. Notice from the employer rises with service, from 2 months after 2 years to 6 months after 10 years.

Can a company outside Sweden hire someone there without a local entity?

Yes. The usual routes are an employer of record, a third-party provider that employs the person for you, or a genuine contractor agreement. Euro Remote Talent handles the placement: we find, screen and shortlist the person, and you choose the route.

Sources

  1. Skatteverket, Arbetsgivaravgifter. Checked 3 Nov 2026.
  2. Skatteverket, Lower employer contributions for young people, 31 Mar 2026. Checked 3 Nov 2026.
  3. Skatteverket, Belopp och procent 2026. Checked 3 Nov 2026.
  4. Riksdagen, Act on general pension contribution (1994:1744). Checked 3 Nov 2026.
  5. SCB, Municipal taxes 2026, 15 Dec 2025. Checked 3 Nov 2026.
  6. Riksdagen, Employment Protection Act (1982:80). Checked 3 Nov 2026.
  7. Riksdagen, Annual Leave Act (1977:480). Checked 3 Nov 2026.
  8. Riksdagen, Working Hours Act (1982:673). Checked 3 Nov 2026.
  9. Riksdagen, Sick Pay Act (1991:1047). Checked 3 Nov 2026.
  10. Fรถrsรคkringskassan, Parental benefit. Checked 3 Nov 2026.
  11. SCB, Wage dispersion by sector and sex 2025. Checked 3 Nov 2026.
  12. Migrationsverket, New median salary changes the work permit salary requirement, 16 Jun 2026. Checked 3 Nov 2026.
  13. Migrationsverket, New rules for work permits from 1 June 2026. Checked 3 Nov 2026.
  14. Migrationsverket, MIGRFS 2026:11, EU Blue Card salary threshold. Checked 3 Nov 2026.
  15. Migrationsverket, Hiring EU citizens. Checked 3 Nov 2026.
Julien Sicard
Written by
Julien Sicard
Founder, Euro Remote Talent

Julien founded Euro Remote Talent, which helps people in Europe find remote jobs and places European remote professionals with remote companies.

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