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Global Expansion Guide

Sweden

Manage and pay your employees easily with BIPO in Sweden and 170+ other markets. Build your international teams today with our global Employer of Record service!

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Currency

Swedish Krona (SEK)

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Language

Swedish

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Capital

Stockholm

Employer of Record Sweden

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Sweden

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Employer of Record Sweden

Embark on your business expansion in Sweden with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Swedish market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 10 November 2025. The content in this guide is current as of this date and based on common business practices.

Employment Contract

Types of Labour Contracts

  • Employment contracts are generally open-ended by default.
  • Fixed-term contracts may be used for general fixed-term employment, temporary replacement employment, and seasonal employment.

Key Contents of a Labour Contract

Employers must provide employees with a written statement of the essential terms of the employment relationship, including:

  1. Names and addresses of the employer and employee, the start date of employment, and the workplace.
  2. Job title, duties, and responsibilities.
  3. Type of contract (open-ended, fixed-term, or probationary) and the applicable notice period or termination provisions.
  4. Salary, benefits, method of payment, and payment frequency.
  5. Normal daily or weekly working hours.
  6. Overtime rules and compensation arrangements.
  7. Working time schedules and shift patterns.
  8. Information on the hiring company for temporary agency workers.
  9. Training entitlements.
  10. Number of paid annual leave days.
  11. Procedures for contract termination.
  12. Social security contributions and applicable protection.
  13. Relevant collective agreements, if any.

Timeframe for Providing Information

  • Items (1) – (7): Within 7 days of the employee’s start date.
  • Termination clauses for fixed-term contracts (Item 3): At the time of signing the contract.
  • Item (8): As soon as the information becomes available.
  • Items (9) – (13): Within 1 month of the employee’s start date.

If any terms of employment change, the employer must provide written notice to the employee no later than the date on which the change takes effect.

Statutory Contributions

Scope of Application: Applies to all individuals.

Social Insurance Type Employee Contribution Employer Contribution
Medical Insurance 0% 3.55%
Parental Insurance 0% 2.60%
Pension Insurance 7% (capped at SEK 650,422; actual contribution: SEK 650,422 x 7% = SEK 45,530) 10.21%
Survivor’s Pension 0% 0.60%
Unemployment Insurance 0% 2.64%
Work Injury Insurance 0% 0.20%
Payroll Tax 0% 11.62%

Notes:

  • For employees aged 66 or above at the start of the year, employers are only required to pay pension insurance at 10.21%.
  • For individuals born in 1937 or earlier, employers are not required to pay any social insurance contributions on their labour remuneration.
  • From 1 January 2026, for individuals aged 67 or above at the start of the year, employers will only be required to pay pension insurance at 10.21% on taxable remuneration.

Minimum Wage

Sweden does not have a statutory national minimum wage. Instead, minimum wage levels are set through collective bargaining between employers and trade unions for each industry.

Public Holidays

The public holidays in Sweden for 2025 are listed below. Please refer to official announcements from the Swedish government for the latest updates.

Holiday NameDate
New Year’s Day1 January 2025
Epiphany6 January 2025
Good Friday18 April 2025
Easter Sunday20 April 2025
Easter Monday21 April 2025
May Day1 May 2025
Ascension Day29 May 2025
National Day6 June 2025
Midsummer Day21 June 2025
All Saints’ Day1 November 2025
Christmas Day25 December 2025
Boxing Day26 December 2025

Note: No statutory entitlement to a substitute rest day if a public holiday falls on a weekly rest day.

  • Overtime Compensation for Work on Public Holidays: There is no statutory requirement; compensation may be agreed freely between the parties or regulated by collective agreements.
  • Exemptions from Overtime Compensation on Public Holidays: None.

Working Hours

Normal Working Hours

Daily Weekly
Not specified 40 hours
  • Daily Rest: Employees are entitled to at least 11 consecutive hours of rest within each 24-hour period, including the interval from 00:00 to 05:00.
  • Weekly Rest: Employees are entitled to at least 36 consecutive hours of rest within each seven-day period, preferably scheduled over the weekend.
  • Overtime Compensation: There is no statutory requirement; any compensation may be freely agreed between the parties or regulated by collective agreements.
  • Exemptions from Overtime Compensation: None.

Leave

Annual Leave

  • Applicable Employer Type: Single employer.
  • Eligibility: Employees of private enterprises. The annual leave year runs from 1 April to 31 March of the following year.
  • Entitlement: 25 days per year; employees starting after 31 August are entitled to 5 days.
  • Annual Leave Allowance: 100% of regular salary.
  • Conversion of Unused Annual Leave: No leave is required for employment periods of three months or less, but leave allowance must be paid. Any unused leave upon termination must be compensated at 100% of salary.

Sick Leave

  • Eligibility: Employees of private enterprises. For contracts shorter than one month, employees must work continuously for 14 days to qualify for sick pay. Sick allowance requires three conditions: inability to work, loss of income, and coverage under Swedish social insurance.
  • Duration: 1 to 90 days.
  • Allowance: The first 14 days are paid by the employer at 80% of salary (the first day is a waiting day, with 20% of average weekly salary deducted). From the 15th day, sick allowance is paid by social security at 80% of salary.

Maternity Leave

  • Eligibility: Female employees before and after childbirth.
  • Duration: At least seven weeks before childbirth and seven weeks after childbirth, including a minimum of two consecutive weeks.
  • Allowance: 80% of salary, paid by the government.

Other Leave Types

  • Full-Time Parental Leave:

    • Parents are entitled to full-time leave to care for a child until the child reaches 18 months.
    • Employees who adopt or receive a child for adoption are entitled to full-time leave for 18 months from the date the child enters their care. This entitlement ends when the child reaches eight years of age or completes their first year of school, whichever is later.
  • Part-Time Parental Leave: Working hours can be reduced proportionally (¾, ½, ¼, or 1/8). Parents receive partial parental allowance.
  • Temporary Parental Leave: For parents needing to care for a child when the regular caregiver is ill or infected. Duration is determined by circumstances; temporary parental allowance is available.
  • Child Maintenance Allowance Leave: Employees may work full-time or part-time; full child maintenance allowance is provided.
  • Special Leave or Reassignment for Pregnant, Postpartum, or Nursing Employees: Applicable to pregnant, postpartum, or nursing women. Duration depends on health and safety needs. Salary is retained if reassigned; salary may not be retained if leave is taken for health and safety reasons.
  • Other Leave Entitlements: May be established by labour agreements, company policies, or individual employment contracts.

Termination and Compensation

Notice Period

  • Minimum Notice Period: 1 month, applicable to both employers and employees.

  • Extended Notice Period for Employees (based on total length of service with the employer):

    • 2–4 years: 2 months
    • 4–6 years: 3 months
    • 6–8 years: 4 months
    • 8–10 years: 5 months
    • Over 10 years: 6 months
  • Note: Employees are entitled to receive their regular salary and benefits during the notice period, even if they are not assigned work or are assigned alternative tasks. If the employer permits the employee to refrain from work or work part-time during the notice period, income earned from other employment may be deducted from the notice period salary. Employers may also deduct any income the employee could reasonably be expected to earn from other suitable work.

Compensation

There is no statutory entitlement to termination compensation in Sweden. Any severance pay is determined by collective labour agreements or individual employment contracts.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation:
    The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management:
    We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Swedish regulations.
  • Contributions and Taxes:
    Our expertise in managing local social security requirements ensures your business complies with in-country financial obligations.
  • Compliance with Minimum Wage and Working Hours:
    We guarantee that your employment practices adhere to Sweden’s minimum wage and working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management:
    Implement and manage leave policies that comply with Sweden’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance:
    Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services:
    Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Sweden

Unlock your growth potential with BIPO’s Employer of Record service in Sweden. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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