Social security in
Sweden.

SALARY PAYMENT IN Swedish Krona (SEK, kr)

CONTRACT LANGUAGES Swedish / English

PAYROLL TAX 31.42%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
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Sweden

Social security in Sweden – Overview

Employers and employees in Sweden need to contribute to the social security system. However, employers pay the vast majority at 31.42% of employee salary amounts. Employees pay 7% toward their pensions, but this is usually offset by a tax reduction. The social security system covers various social benefits including parental leave, sick pay, healthcare, accident insurance, pensions, and so on.

What does the social security system in Sweden cover?

Sweden’s social security system covers many social benefits including parental leave, sick pay, healthcare, accident insurance, pensions, and so on. The healthcare system in Sweden is among the best in the world.

What are the mandatory contributions for employees to social security in Sweden?

Employees in Sweden are required to pay 7% toward their pensions.

What are the mandatory contributions for employers to social security in Sweden?

Employers in Sweden pay the lion’s share of social security at a rate of 31.42% of employee salary amounts.

How do mandatory contributions compare to the surrounding countries?

Social security contributions in Sweden are relatively high compared to the rest of western Europe (with the exception of other Nordic countries). Famous for their high-caliber social safety nets, these countries are generally considered expensive places to hire employees from an employer burden perspective. However, it’s not without benefit for the employer. The population of Sweden is healthy, well-educated, and maintains a high happiness ranking- making it an attractive place to employ despite the slight cost difference.

Hiring in Sweden, Made Easy

Your business can easily hire employees in Sweden without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 185 countries worldwide. All you need to do is focus on your business.

FAQs

How much do employers need to contribute to social security in Sweden?

Employers must contribute 31.42% of employee salary amounts to social security in Sweden.

What situations does social security cover for employees in Sweden?

Social security in Sweden covers the following:

Parental leave
Sick pay
Healthcare
Accident insurance
Pensions
Unemployment

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