Payroll and Benefits Guide Sweden
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
3.55%
|
Health Insurance
|
|
2.60%
|
Parental Insurance
|
|
10.21%
|
Retirement Pension*
|
|
0.60%
|
Survivors Pension
|
|
2.65%
|
Labor Market Fee
|
|
0.20%
|
Occupational Injury
|
|
11.62%
|
General Payroll Tax (10.21% total contribution for employees born between 1938-1955 and 2003–2005)
|
| 31.42% |
Total Employment Cost |
| Employee Payroll Contributions | |
|
7.00%
|
Pension Insurance, applied on gross income up to SEK 599,250 per year. |
| 7.00% |
Total Employee Cost |
| Employee Income Tax |
Please refer to government income tax tables for full range of taxes (in Swedish). There are six tax tables based on:
• Where the employee lives in Sweden
• Column 1 refers to salaries, fees, and similar remuneration, used for
employees under age 65 (1st of January)
• Column 2 refers to pensions and other benefits and are used for those over age 65
• Column 3 refers to salaries, fees, and similar remuneration, used for employees over age 65 (1st of January)
• Column 4-6 refers to sick pay, unemployment pay, pensions, or other benefits
• For monthly income over SEK 80 000 tables show % rates for tax deductions |
| State Employee Income Tax | |
|
0.00%
|
Up to SEK 625,800 |
| 20.00% | Above SEK 625,800 |
* Employer contributions are based on date of birth, as follows:
- Employees born in 1937 or earlier are not subject to contributions
- Employees born between 1938 and 1955 are subject to contribution at the rate of 10.21%
- Employees born in 1956 or later are subject to contributions at the rate of 31.42%
- Employees born between 2003 and 2005 are subject to contribution at the rate of 10.21% up to a salary of 25.000 skr/month. Salaries above that are subject to contribution at the rate of 31.42%
Employees born between 1998 and 2002 are subject to contribution at the rate of 19.73% up to a salary of 25.000 skr/month. Salaries above are subject to contribution at the rate of 31.42% (temporarily until 31st of March 2023).
Employer taxes
Employee taxes
Minimum Wage
General
In Sweden, there is no official national minimum. Minimum wages are stipulated within the collective bargaining agreements through the trade unions of the employee.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
In Sweden, the payroll frequency is typically monthly. Employers usually make the payment of salaries on the 25th of each month.
13th Salary
In Sweden, 13th-month payments are not legally mandatory. Employers can pay bonuses at their discretion.
|
Authority Payment |
Paid To |
Due Date |
Method |
|
Skatteverket |
Employer contribution and withholding tax |
14th of every month (working days) It may differ if 14th fall on weekends |
Wire Transfer |
Working Hours
General
The standard working week consists of 40 hours over the course of five days, following the commencement of five consecutive working hours, an employee must be allowed a break.
Overtime
All work more than the standard working hours per week is to be paid as overtime and is regulated by employment contract/collective agreements. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed. These maximums are 48 hours per week, an average of 50 hours per month, or 200 hours annually over four months.
All overtime hours exceeding 40 hours a week are paid at an overtime compensation rate; this rate is stipulated in the employment contract/collective agreements.
For overtime worked on weekdays before 8.00 pm, hours are compensated at the monthly salary divided by 94 for each additional hour of work. For hours worked after 8.00 pm or on weekends, hours are compensated at the monthly salary rate divided by 72 for each additional hour worked.
Employees who hold a managerial or comparable role or organize their working schedule are generally not entitled to overtime compensation. Including overtime pay in the gross salary is sometimes an option for non-managerial roles as well.
Time & Attendance
Employers are legally required to record total working hours, overtime, on-call standby and compensation provided.
Leave
Annual Leave (vacation)
Employees are entitled to 25 working days of paid vacation each year after one year of work at the company at a 2.08 monthly accrual. It is common to give 30 days per year. During the first year of employment the employees accrue 25 working days to be used in the second year of employment.
The Annual leave accrual cycle is from April 31st to March 31st of the following year.
PTO carryover
Any unused vacation days above 20 days can be carried over to the following year. Once accrued, a maximum of 30 vacation days can be held for up to five years. Vacation pay accounts for 12% of an employee’s gross annual salary. Cash out of unused vacation days is possible upon termination only.
Note:
- For People 2.0, 3 days can be carried over every year with no deadline to be used.
Public Holidays
Public holidays that fall on the weekend are usually lost.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 5 April 2026 | Sunday | Easter Sunday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 24 May 2026 | Sunday | Whit Sunday (Pentecost) | Standard holiday |
| 6 June 2026 | Saturday | National Day of Sweden | Standard holiday |
| 20 June 2026 | Saturday | Midsummer Day | Standard holiday |
| 31 October 2026 | Saturday | All Saints’ Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day (Second Day of Christmas) | Standard holiday |
Sick Days
In Sweden, the first day of sickness is unpaid. Day 2 to 14 of sick leave is paid by the employer. Sickness of more than 14 days is paid by the Social Security (Försäkringskassan).
Generally, sick leave is compensated at a rate of 80% of the employee’s regular pay rate, depending on the length of the sickness.
Maternity Leave
Maternity leave falls under the broader Parental Leave system (foraldraledighet) which gives 480 days of paid parental leave split as 240 days between both parents (if applicable) following the birth of their child.
Mothers are entitled to take maternity leave at least 7 weeks before and 7 weeks after the birth (these weeks are deducted from the 480 days parental leave entitlement).
Additional details can be found in the below Parental Leave section.
Paternity Leave
Fathers, or the second parent, are entitled to take 10 paid working days of temporary parental benefit within the first 60 days following the birth. This leave is paid for by the Swedish Social Insurance Agency at approximately 80% of the worker’s salary.
Additional leave entitlement falls under the broader Parental Leave system (foraldraledighet) which gives 480 days of paid parental leave split as 240 days between both parents (if applicable) following the birth of their child.
Note that the 10 days temporary parental benefit is in addition to the Parental leave of 480 days and is not deducted from it.
Parental Leave
Following the birth, parents can access a combined total of 480 days leave, of which at least 90 days must be reserved for each parent to take and cannot be transferred (if these days are not taken by each parent they will be lost). These 90 days can be taken all at once, intermittently or part time. The remainder of the 480 day leave period can be transferred between parents.
Parents can take a maximum of 60 days of this leave at the same time as each other (commonly referred to as “double days”) until the child reaches one years of age. Parents can choose to take leave in one continuous period or divide it into several blocks, with a maximum of three periods allowed each year (unless the employers agrees to allow it being used in more than 3 periods).
Parental Leave benefits can be used up until the child turns 12 years old or completes year 5 of compulsory school. Employees also have the option to use the Parental Leave entitlement to reduce their working hours until the child is eight years of age.
Parents can also hand over 45 days (with joint custody) of their parental benefits to another relative (the sole guardian can transfer up to 90 days)
Workers should give their employers at least two months advance notice on their intention to take parental leave.
The first 390 days of leave is paid at 80% of the workers income (capped at SEK 1,116 per day in 2025) providing the worker has at least 240 consecutive service days before the birth. Parents who are not eligible might still be entitled to receive the basic level payment (SEK 250 per day).
The remaining 90 days are paid at a minimum flat rate (SEK 180 per day in 2025).
Other Leave
In Sweden, there may be several types of other leave entitlements available under a respective Collective Bargaining Agreement or mandated within a company policy or Employment Contract.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination. However, no termination due to economic reasons or long-term disability can occur without negotiations with unions.
| Salary payment interval / date | Final payment on termination | Bank account/payment‐method requirement |
|---|---|---|
| Salaries must be paid on the agreed payday (commonly monthly). Employers must pay the salary on the agreed date as indicated by the employer’s information on pay. | When employment ends, the employer must pay all wages and other remuneration due. The employer’s pay obligation arises at termination. | The law requires payment of salary in money. |
Notice Period
For employers with a Collective Agreement, notice periods are stipulated in the employment contract; the notice period is commonly 1 month.
For employees without a Collective Agreement, the notice period is dependent on the employee’s service as follows:
- During Probation period = 2 weeks notice
- Less than 2 years service = 1 month of notice
- 2 to 4 years service = 2 months of notice
- 4 to 6 years service = 3 months of notice
- 6 to 8 years service = 4 months of notice
- 8 – 10 years service = 5 months of notice
- 10+ years of service = 6 months of notice
Workers who resign must give 1 month notice, regardless of their length of service.
Severance Pay
Severance is not mandatory in Sweden unless stated as part of an applicable Collective Agreement or employment contract.
Probation Period
The probationary period can be a maximum of 6 months. The period can be shorter and the employee can become permanently employed before the probationary period is complete. If a probationary period is not terminated after six months, the employment will automatically become permanent.
The probationary period must be stated in the employment contract. The employee needs to be informed two weeks at the latest before the period ends if he or she will be permanently employed. Salaries and other benefits are the same during a probationary period.
Setting Up a Business
Setting up a legal entity
A foreign company or sole trader may become liable to pay taxes for value-added tax (VAT), employer’s contributions, and/or income tax. If so, the business must be registered at the Swedish Tax Agency and may apply for approval of Swedish F-tax.
As a foreign sole trader or representative of a foreign company, you can use the Swedish Tax Agency’s e-service to
- Apply for a company registration number (if you are representing a legal person)
- Get approval for Swedish F-tax
- Register for value-added tax (VAT)
- Register as an employer
With the e-service, you can register your business for value-added tax (VAT), register as an employer, or apply for approval of Swedish F tax. You can also apply for a Swedish company registration number for a legal person without having to register the company to pay taxes.
For further information please visit the Skatteverket website.
Registration as an employer
Registration as an employer in Sweden can be done on the Skatteverket website. You will be asked to attach an A1 or E101 certificate stating the country in which every posting personnel has their social security. For information on where to receive an A1 certificate within the EU, visit: Institutions responsible for issuing the portable document A1.
Employers should obtain the employee E-ID details, which are used to submit a corporate social responsibility (CSR) request to the Central Tax Register to collect the correct tax table for payroll tax deduction.
New employee registration
New employees should be reported on monthly basis included to the monthly PAYE filling to the Swedish Tax Agency.
A foreign employer without a permanent establishment in Sweden must adhere to the following:
- Withhold Swedish tax on income related to work performed in Sweden
- The tax rate for withholding is 30% (if a valid SINK (special income tax for foreign residents) decision is in place, the rate will be 25%).
- An employer obliged to withhold Swedish tax should register as an employer in Sweden with the Swedish Tax Agency.
Start and leave dates are confirmed to the tax authorities through the monthly individual tax declaration.
The employer should obtain the employee E-ID details, which are used to submit a CSR request to the Central Tax Register to collect the correct tax table for payroll tax deduction.
Common Benefits
- Private pension between 5-10%
- Health insurance allowance for private health insurance. The average for senior individuals is around SEK 4,000 per year
- Life insurance approximately SEK 4,000 per year
- Home office between SEK 500 – 1000
- Gym allowance between SEK 200 – 350 per month
- Meal allowance between SEK 50 – 70 per day
Immigration
Generally, citizens from countries outside the EU must apply for a work permit to work in Sweden. There are a few exceptions to the rule. Citizens of Australia, Canada, Hong Kong, Japan, New Zealand, and South Korea aged 18–30 can also apply for a working holiday visa for up to one year.
For employment that lasts less than three months, citizens of certain countries must have a work permit and a visa.
To qualify for a work permit, you must have received an official offer of employment from a Swedish employer. The job must also:
- Have been advertised in the EU/EEA for at least ten days
- Offer terms of employment that match those set by Swedish collective agreements or those that are customary within the occupation or industry
- Pay a minimum monthly salary of SEK 13,000 before taxes
You must also hold a valid passport in your home country.
VAT
General
The standard rate of VAT in Sweden is 25.00%.
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Payroll and Benefits Guide
in Sweden
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Epiphany | Standard holiday |
| 3 April 2026 | Friday | Good Friday | Standard holiday |
| 5 April 2026 | Sunday | Easter Sunday | Standard holiday |
| 6 April 2026 | Monday | Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 14 May 2026 | Thursday | Ascension Day | Standard holiday |
| 24 May 2026 | Sunday | Whit Sunday (Pentecost) | Standard holiday |
| 6 June 2026 | Saturday | National Day of Sweden | Standard holiday |
| 20 June 2026 | Saturday | Midsummer Day | Standard holiday |
| 31 October 2026 | Saturday | All Saints’ Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | Boxing Day (Second Day of Christmas) | Standard holiday |
In a dismissal, is it lawful to give an employee compensation instead of a notice period?
The Employment Protection Act (EPA) applies, including the length of notice in a termination, which ranges from one month for an employee at the company up to two years, to six months for someone with 10 years of service. However, it is possible to come to a mutual agreement where the employee accepts compensation instead of the notice period. The choice belongs to the employee.
Hi,
What are the current laws of the short-term work allowance if an employer needs to reduce an employee’s work hours?
Thanks
Hi Keith, Until June, employers who are eligible can reduce an employee’s working hours by 20%, 40%, 60%, or 80%. The central government provides financial assistance depending on the number of reduced working hours throughout the period. For full details visit https://tillvaxtverket.se/english/short-time-work-allowance-2021.html
Hi,
is there any place to see which benefits in kind are tax-free?
Hi, thank you for your question. You can find this information on the Swedish tax authority website. In general, though, business expenses, mileage allowance, and occupational pension are tax-free, all other benefits are generally taxable.
Hi, can we ask for a voluntary hours/salary reduction in Sweden? If so, please where could I find the information? We cannot claim for short time working, as we previously claimed during Covid.
Hi Jane, thank you for your question. While the Short-Time Work Allowance has expired, you may request to reduce your work hours (and receive a pay reduction) with your employer, however, they are not obligated to agree. If a reduction is approved, a written agreement must be in place.
thank you very much!
Canadian Employer with Swedish Employee: we are a Canadian company with an employee who has worked for us for two years. The employee decided to move home to Sweden. The employee is able to work remotely and so we have asked him to continue working for us from Sweden. We want to comply with all Swedish laws. What is the best way to structure this arrangement? Should the employee set up a corporation and invoice us through his company as a contractor? Should we continue to employ him as an employee? We want to keep things as simple and low-cost for both sides as possible.
Hi Tim, Continuing to employ on a Canadian employment contract is not the correct setup.
You have a few options:
1. Set him up as a contractor (though this might not be the most compliant way as it sounds like he would be misclassified)
2. EOR model
3. Set up an entity
It would be best for you to speak with a sales rep to find out which solution is the right fit for you. https://www.papayaglobal.com/schedule-a-demo/
How much time does my employer have to pay me after I’ve worked? (i.e., how long can they hold funds?) I know most are paid monthly, but is there a legal amount of time they have to pay?
Hi Elizabeth, your monthly payment should be made no later than the date that applies to your workplace and is specified in your contract. Monthly payments are typically paid by the 25th of each month.
Hi
Is there provision for an employer to gross up the value of a benefit in kind and pay all costs rather than it being treated as a benefit in kind.
Thank you.
With regards to the common benefits, we can include expenses, etc. within the monthly payroll as additional gross allowances. These benefits are taxable in Sweden and so we would simply add a sum to the monthly gross salary in order to cover the cost of each benefit. The employee is then free to choose whichever provider they like and make monthly net contributions to each provider accordingly.
what is the mandatory min payment an employer needs to make to pension in Sweden?
We understand that 30% for higher earners is the standard (though trying to understand whether this is a mandatory amount). OUr employees are not subject to a CBA yet.
The average contribution is around 4.5% of income up to 41,000 SEK per month and then around 30% of income over 41,000 SEK per month.
Hello, do you know if there is any benefit for a company in Sweden to offer a public transportation allowance to its staff, or is it taxed at the same level as any other income ?
If an employee uses public transportation to go to and from work, then the travel fee should be tax-free.
If the employee only use it for private travels ( back and forth to work) it is a benefit and not tax free. It is only travel that is related too work that is tax free if’s paid by the employer
Hi, if I am coming to Sweden based on marriage to Swedish citizen (residence permit) do I have right for monthly unemployment benefits until I find job?
It is necessary to have worked enough hours in order to be eligible for unemployment benefits. Currently, Sweden’s minimum requirement is:
-a minimum of 60 hours of work in six of the last 12 months
-or at least 40 hours per calendar month and 420 hours in total during a consecutive period of six months in the past 12 months.
Hi. I was wondering if there are any rules around the payslips delivery date. I know the employer is obliged to issue one each month and mine does it 1 day before pay date. However my team is saying that they should get it earlier, they expect the payslip around 5 days before pay day.
There is no specific date for the delivery date of the payslip. Generally, it will be issued on the same date as the pay date. 25th of the month is a common pay date in Sweden.
Can someone calculate for me if I’m coming to Sweden for 4 months to work and I get 26500sek a month before tax + 9000sek gross cash allowance + 800sek cash allowance for transportation. How much will I have net pay at the end of the month. Thanks
Hello, I would recommend trying out out Cost Calculator.