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Hiring in Sweden gives employers access to a highly educated, innovation-driven workforce with strong expertise in technology, engineering, manufacturing, healthcare, and sustainability. Sweden consistently ranks among Europe’s most competitive labor markets, supported by a strong focus on work-life balance and employee rights.
Employment in Sweden is regulated by the Employment Protection Act and extensive collective bargaining agreements. While labor laws provide a legal framework, many employment terms such as wages and overtime are defined through sector-level agreements. Employers hiring in Sweden must comply with both statutory rules and applicable collective agreements.
Facts & Stats
Key Employment Rules Employers Must Know
Employment relationships in Sweden are governed by statutory labor laws and collective agreements. Employment contracts should be provided in writing and clearly define job role, salary, and working conditions. Probation periods are permitted for up to 6 months.
The standard working week in Sweden is 40 hours, typically spread across five working days. Many employers operate flexible schedules to support work-life balance.
Overtime is regulated primarily through collective agreements rather than statute. Overtime work is generally permitted within defined limits and must be compensated through additional pay or time off in lieu, depending on the applicable agreement.
Sweden does not have a statutory national minimum wage. Minimum pay levels are determined through collective bargaining agreements, which vary by industry and role. Employers must apply the relevant agreement to remain compliant.
Employees are entitled to paid leave and statutory protections related to termination, notice periods, and severance pay.
Overview of Employer, Employee, and Individual Taxation in Sweden
No separate social security contribution
Employees generally do not pay separate social security contributions. Instead, income tax is deducted directly from wages.
Approximately 31.4%
Employers contribute approximately 31.4% of an employee’s gross salary toward social security. These contributions fund pensions, healthcare, unemployment insurance, and parental benefits.
Approximately 30% to 55%
Sweden applies a progressive income tax system. Municipal tax averages around 30%, with additional state income tax applying to higher earners.
Sweden operates a mandatory public pension system funded primarily through employer contributions. Employees are also commonly enrolled in occupational pension schemes.
Employment termination in Sweden must follow the Employment Protection Act. Employers must have objective grounds for dismissal, such as redundancy or personal reasons, and follow a structured process. Notice periods depend on the employee’s length of service and typically range from one to six months. Immediate dismissal is allowed only in cases of gross misconduct.
In Sweden, notice periods depend on the employee’s length of service and applicable collective agreements. Statutory notice periods generally range from one to six months and apply to both employers and employees.
Severance pay is not mandatory under Swedish law but may apply through collective agreements or individual employment contracts, particularly in redundancy situations.
Employees in Sweden are entitled to a minimum of 25 days of paid annual leave per year. Paid sick leave is available, with employers covering the initial period before social insurance benefits apply. Parental leave is one of the most generous globally, allowing up to 480 days per child, paid through social insurance and shared between parents. Employees are also entitled to paid bereavement leave, typically granted through collective agreements.
January 1
New Year’s Day
June 6
National Day
Midsummer Day
June (variable)
December 25
Christmas Day
Frequently asked questions
What makes Iris helpful for hiring in Sweden?
Iris helps employers source and evaluate candidates efficiently while supporting compliance with Swedish labor laws and collective agreements.
Is it mandatory to hire Swedish nationals?
No. Employers can hire both Swedish and foreign nationals. Non-EU employees must have valid work permits, while EU citizens can work freely in Sweden.
How is severance calculated in Sweden?
Severance pay is not statutory and depends on collective agreements or employment contracts. It is commonly provided in redundancy cases.
What are the official working hours in Sweden?
The standard working week in Sweden is 40 hours, typically spread across five days.
Do employees in Sweden receive a pension?
Yes. Employees are covered by a mandatory public pension system, with additional occupational pensions common across industries.
