Sweden EOR & PEO

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Hire in Sweden

Horizons provides compliance solutions to ensure your business in Sweden operates in line with Swedish labor laws and tax regulations. Businesses benefit from hiring in, investing in, or job outsourcing to, Sweden in a range of industries, from customer service, to accounting services, to software development. We also process monthly payroll, and, as a Sweden Employer of Record, absorb all local employer liabilities. Partnering with our Sweden EOR is the quickest and most cost-effective way to enter the Sweden market.

Note, a Sweden Employer of Record is also known as a Sweden Professional Employer Organization (PEO).

Facts & Stats

stay compliant with Sweden labor laws

Employment Laws

Employment contracts in Sweden

Sweden’s employment law can be complex, so it is crucial that you always understand the regulations when trying to expand and hire in the country.

In Sweden, employers are required to provide written employment contracts for all employees. These contracts need to clearly include all related information, such as wage/salary, vacation and other benefits, working hours, and more.

Furthermore, all contracts issued in the country should be provided in the Swedish language and use the local Swedish krona currency.

By partnering with our Sweden EOR, Horizons’ team of local experts can provide assistance for drafting strong employment contracts that are compliant with local regulations.

Fixed-term

Indefinite

Working hours in Sweden

Normal working weeks are 40 hours in Sweden. In addition, employees are required to have 11 hours off between shifts and a minimum of 36 hours of time off every seven days.

48 hours is the legal limit of a working week, after which overtime must be paid. Overtime is limited to 200 hours per year, and is generally paid at a rate of 1.5 to 2 x normal payment. Alternatively, it can be accrued as time off work in the future.

Public holidays in Sweden

Swedish employees generally receive 13 days of public holidays every year. Some employers choose to offer further annual holidays, but it is not necessary and can be negotiated on a case-by-case basis.

The following days are commonly celebrated nationally:

Holiday Schedule in Sweden [2024]

Sweden has a range of national public holidays that are celebrated annually. In 2024 these holidays are:

Date	Holiday name
1 Jan Monday	New Year’s Day
6 Jan Saturday	Epiphany
29 Mar Friday	Good Friday
30 Mar Saturday	Holy Saturday
31 Mar Sunday	Easter Sunday
1 Apr Monday	Easter Monday
1 May wednesday	May 1st
9 May Thursday	Ascension Day
18 May Saturday	Whit Saturday
19 May Sunday	Whit Sunday
6 Jun Thursday	National day
21 Jun Friday	Midsummer Eve
22 Jun Saturday	Midsummer Day
2 Nov Saturday	All Saints’ Day
24 Dec Tuesday	Christmas Eve
25 Dec Wednesday	Christmas Day
26 Dec Thursday	Boxing Day
31 Dec Wednesday	New Year’s Eve

Vacation leave in Sweden

Employees in Sweden are entitled to at least 25 days of paid holiday each year. Many employers offer more, and employees may request a larger allowance. Usually, vacation days are ‘earned’ one year in advance, so there is no law requiring employers to offer vacation leave in the first year of employment. However, many still do. Up to five days can be carried over if not used one year, for as many as five years into the future.

Sick leave in Sweden

In Sweden, employees are not paid for their first day of sick leave, but are paid a rate of 80% of usual salary/wage for the next two weeks of absence. Beyond this, employers will need to refer the case to the Försäkringkassan (a government office) to assume responsibility of sick pay. Parents who need to take time off to care for a child (under 12 years old) can also access sick pay support.

Employees who are absent for more than seven days need to provide a medical note as proof of sickness.

Maternity and paternity leave in Sweden

Employees in Sweden can access up to 16 months (480 days) of parental leave, with mothers entitled to at least seven weeks before and after birth. The partner of the mother can take ten days of leave for the birth. The 480-day allowance can be shared between either parent, but 60 days of it are reserved for each parent specifically.

In terms of remuneration, employers are not required to cover parental leave payments (but many do), and parents can usually access government-funded support of 80% of normal salary. This is limited depending on the type of leave being taken, and is reduced to a significantly lower payment after 390 days of leave.

A further form of parental support allows parents with children under the age of eight to work part time at 3/4 hours (or more).

Terminations and severance payments in Sweden

In Sweden, employers must inform employees of termination two weeks in advance of giving notice. Employees can then enter negotiations, where reasons are provided and may be requested in writing.

Notice periods depend on the length of employment, with employees of less than two years requiring one month of notice. This increases by one month for every additional two years of employment, with a maximum of six months after ten years. Employees are entitled to normal payment and full benefits throughout the notice period in most cases.

Employees who think they have been terminated wrongfully can sue, and may be entitled to damages of 1.5 to 2.5 years of salary. In many cases, employers also need to speak with an employee’s union.

Severance payments are not required in Sweden, but many employment contracts will include agreements to pay them.

Navigating employee terminations and handling severance packages can be complicated for companies expanding overseas for the first time. Horizons’ Sweden EOR can mitigate risk for foreign companies and provide guidance through this process.

Taxation in Sweden

In Sweden’s progressive taxation system, taxes are deducted by employers before salaries are paid. There is a municipal income tax of 32% (the average across municipalities) which applies to all employees regardless of income, and a national income tax of either 0% or 20%, dependent on income level.

As of 2020, the corporate tax rate in Sweden is 21.4%, but this is set to fall slightly in 2021.

Social benefits are funded in part by employers. Employers are required to pay around 30% of salary in contributions to a social insurance fund, which covers several social benefits like pension funds and sick leave payments.

Health coverage in Sweden

The healthcare system in Sweden is universally available and funded by the government, so employers are not expected to offer private health insurance. However, some employers may choose to offer it as part of a benefits package to attract employees.

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Compensation & Benefits

Compensation Laws in Sweden

Sweden has a different minimum wage system to most countries, as there is no universal minimum rate. Instead, unions work to establish minimums on an industry or job-type-basis. For jobs that aren’t covered in this way by unions, an agreed wage should be established and written into the employment contract.

Minimum Wage Country Comparison Chart	(Per month in USD)
Switzerland (Geneva)	$4,000
Italy	$2,255
Australia	$1996
Algeria	$156
Uzbekistan	$22

Benefit management in Sweden

Establishing a Swedish benefits system for employees can be difficult. With a different language and a unique set of employment laws, building a comprehensive and compliant benefits system can take a long time and come at significant cost.

At Horizons, we specialize in building and running Swedish employee benefits systems. We’ll handle everything, using our experience to ensure you are ready to commence your Sweden operation as quickly as possible.

Sweden Employer Of Record Peo

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Hire in Sweden

Employment Laws

Working hours in Sweden

Public holidays in Sweden

Compensation & Benefits

Frequently asked questions

Hire borderless talent with Horizons

Hire in Sweden in 24h without your own local entity.

With Horizons, you get quick service, transparent pricing, and expert support.

Frequently asked questions

What is the difference between a Sweden PEO and a Sweden EOR?

Generally speaking, the terms “Sweden PEO” and “Sweden EOR” are used interchangeably.

Can an EOR in Sweden hire both local and foreign nationals to work in Sweden ?

An EOR in Sweden can feasibly hire both local and foreign nationals to work in Sweden.

However, the ability of Horizons to sponsor your foreign national employee in Sweden may be limited due to visa quotas practiced in many countries.

Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.

How long does Horizons' Sweden EOR service take to hire an employee?

In most cases, Horizons’ Sweden EOR can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Sweden.

Is it possible to get a work visa in Sweden ?

It is possible to get a work visa in Sweden. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Sweden are limited, however—get started today to secure your employees’ visa spot.

Sweden EOR & PEO

Start hiring in Sweden

SIMPLE, COMPLIANT HIRING WITH HORIZONS EOR

Hire in Sweden

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stay compliant with Sweden labor laws

Employment Laws

Employment contracts in Sweden

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Sweden

Public holidays in Sweden

Vacation leave in Sweden

Sick leave in Sweden

Maternity and paternity leave in Sweden

Terminations and severance payments in Sweden

Taxation in Sweden

Health coverage in Sweden

hassle-free Chile compensation & benefits

Compensation & Benefits

Compensation Laws in Sweden

Benefit management in Sweden

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Frequently asked questions

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