EOR Service in Sweden

Hire, Onboard and Pay Employees in Sweden Quickly and Efficiently

Hiring in Sweden at a glance

CURRENCY
The Swedish Krona (SEK)
working hours
40 hours/ week
public/bank holidays
13 days
capital
Stockholm
language
Swedish
date format
dd/mm/yyyy
remote workers
1.2M
tax year
1 January - 31 December
minimum hourly salary
No minimum wage
CURRENCY
The Swedish Krona (SEK)
working hours
40 hours/ week
public/bank holidays
13 days
capital
Stockholm
language
Swedish
date format
dd/mm/yyyy
tax year
1 January - 31 December
payroll frequency
Monthly
GDP
$585.94B (2022)

Employer of Record in Sweden

Sweden currently stands at an impressive 4th position out of 63 economies in the 2022 IMD World Competitiveness Ranking, which makes it an advantageous landscape for businesses. The country’s competitive mixed economy is a desired location for privately owned market-oriented entities owing to the huge highly-skilled talent pool it offers. As your Employer of Record in Sweden, we provide a tailored solution to navigate and thrive in this dynamic and competitive business environment, ensuring a smooth and compliant entry into the Swedish market for your organization.


Why use Sweden EOR?

Firstly, the cost and time taken to set up a business in Sweden can slow your expansion. The Swedish Companies Registration Office (Bolagsverket) charges a fee for registering a new business entity. They also mandate a minimum share capital for establishing a limited liability company (AB), which lies somewhere around 25,000 SEK, while in the USA, the UK or Germany, there is no minimum share capital requirement. With the assistance of an EOR service, employers can simply focus on their hiring and their core business functions while onboarding talent through the EOR’s entity.

Secondly, Sweden’s labor laws are quite different from their business-friendly counterparts like the USA and Singapore around termination procedures, collective bargaining, parental leave, and minimum share capital. For example, collective bargaining is a common practice, with strong involvement of trade unions in Sweden, while in the USA, this is less common in the private sector. 

Hiring in compliance with these laws can be difficult for foreign employers. Partner with a Slovenia Employer of Record (EOR) like Gloroots to onboard local talent compliantly in under a day. We make your hiring compliant with local labor laws so that hiring and payrolling become less complex and more streamlined. Our Slovenia EOR will ensure full compliance with local employment obligations, and you can fully focus on core business functions.

EOR Costs in Sweden

Sweden EOR/PEO pricing is contingent upon factors such as the number of employees, service scope, and project complexity. Typically structured as a monthly fee per employee or a percentage of their salary, the pricing model allows flexibility. Additional charges for supplementary services or customization to meet specific business needs may apply. Employers interested in Sweden EOR/PEO services are encouraged to engage with service providers to discuss their requirements and establish a customized cost structure aligned with their business objectives.

Key Metrics For Foreign Employers 

Sweden ranks 9th in the Insead’s Global Talent Competitiveness Index 2023. It is a high-income country in the European region, making it ideal for business growth and expansion.

Here are some key indicators of the country's talent competence for employers planning to hire from Sweden.

Factors Global Ranking Interpretation
Rule of law 11 Indicates effectiveness of law enforcement
Labour-employer cooperation 22 Indicates positive labor-employee relationships
Reading Maths, and Science 13 Indicates average scores in OECD's survey of 15-year old students
University Ranking 13 Indicates average QS rankings
Labour productivity per employee 10 Indicates total output by the total labour input used to produce that output
Ease of finding skilled employees 41 Indicates findability of skilled talent
Workforce with tertiary education 16 Indicates % of workforce with PG degrees
Digital Skills 12 Indicates prevalence of advanced digital skills in the population

Through the Gloroots’ Recrew platform, you can discover amazing talent in Sweden.

Why work in Sweden ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Grow your team in Sweden

Elevate your team expansion in Sweden through strategic hiring that aligns with your business goals. Streamline the complexities of local employment with Gloroots's global Employer of Record (EoR) service. Rely on our experts to handle compliance, payroll, tax, and benefits, allowing you to focus on fostering your team and propelling company growth in the dynamic Swedish market.

Risks of misclassification

In Sweden, misclassifying employees can jeopardize legal protections. Opting for a PEO/EOR mitigates risks by ensuring compliance, accurate classification, and comprehensive benefits, allowing businesses to focus on core operations while experts efficiently handle employment responsibilities.

Contact Us

Avoid hefty penalties with Gloroots.

Use our free employee misclassification risk calculator to estimate your risk level.

Calculate Now

Employing in Sweden

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Employer

Category Contribution Rate
Health Insurance 3.55%
Parental Insurance 2.60%
Retirement Pension 10.21%
Survivors Pension 0.60%
Labor Market Fee 2.65%
Occupational Injury 0.20%
General Payroll Tax
(Born between 1938-1955 and 2003–2005)
11.62%
Total Employment Cost 31.42%

Employee

Category Contribution Rate Description
Pension Insurance 7.00%
Church Tax 1.03% The church tax fee, calculated as a national average of 1.03% of taxable income, is applicable to members of the Church of Sweden who, as of November 1st, will be required to pay church fees for the upcoming year.
Burial fee Varies The burial fee is levied on individuals registered in Sweden as of November 1st of the preceding year, applying to the income year.
Total Employee Cost 7.00% – 8.03%

Employee Income tax

Annual Income (SEK) Age Category State Income Tax Rate
Up to 540,700 Below 65 0.00%
540,700 and above 65 and above 20.00%

State income tax is not levied on individuals below 65 with an annual income up to 540,700 SEK. For individuals aged 65 and above, the tax applies to incomes exceeding 540,700 SEK.

For more information, please refer to   A-tax certificate and tax tables | Tax (skatteverket.se)

Separation

The procedure for termination depends on the terms of the employment and collective agreements, contract type, and the grounds for termination. However, termination for economic reasons or long-term disability requires approval from the Employee Insurance Agency (UWV). Employers must inform the Employment Service about an employee's termination, and if the company has over five employees, negotiations with trade unions may be necessary. After any negotiations, the employer must furnish a written and in-person termination notice to the employee. If a direct meeting is not feasible, a registered letter must be sent to the employee's home address.

Severance Pay

Severance pay is not obligatory in Sweden, but it may be necessary if specified in a collective agreement or employment contract.

Notice Period

The notice periods in Sweden are established by the employment contract, collective bargaining agreement, and the Employment Protection Act. Employers with a collective agreement determine notice periods through mutual agreement in the employment contract, typically set at one month. For employees lacking a collective agreement, notice periods are contingent on the employee's tenure:

Years of Service Notice Period
Less than two years 1 month
Two years but fewer than four years 2 months
Four years but fewer than six years 3 months
Six years but fewer than eight years 4 months
Eight years but fewer than ten years 5 months
Ten years or more 6 months


In cases of an employer dismissing an employee without notice due to gross misconduct, those with a collective agreement should adhere to the notice period specified in their employment contract (typically one month). Conversely, employees without a collective agreement are subject to a one-month notice period as per the Employment Protection Act.

Probation period

In Sweden, the probation period is specified in the employee's employment contract or collective agreement and cannot exceed six months. It may conclude earlier, with the employee transitioning to permanent employment. If the probationary period is not terminated within six months, the employment automatically becomes permanent. The employment contract must explicitly state the probationary period, and the employee must receive notification at least two weeks before its conclusion regarding permanent employment status. Salaries and benefits remain consistent during the probationary period.

Start Hiring in Sweden today

When expanding globally, ensuring compliance poses unique challenges. Employers must navigate employment laws, adhere to payroll protocols, uphold DE&I standards, comply with GDPR and data protection regulations, and more. While establishing local entities and commencing hiring can be daunting, staying abreast of a dynamic compliance landscape is even more demanding.

Gloroots streamlines this process, offering a centralized platform to manage these tasks effortlessly. Our in-house experts provide comprehensive protection against cross-border employment and payroll compliance risks. We assist in crafting employment contracts, ensuring timely payments, and delivering compliant benefits, allowing you to concentrate solely on talent screening.

Are you Ready to
Experience Seamless Hiring in Sweden ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Sweden .

Speak to our Expert