Sweden has no statutory minimum wage: pay and many working conditions are set by collective agreements, on top of laws such as the Employment Protection Act, the Annual Leave Act and the Working Hours Act. Here is what employers need to know about leave, pay, tax and ending employment.
Swedish leave law is generous and applies to all employees. Collective agreements can improve on it, and parental benefits are paid by the Swedish Social Insurance Agency (Försäkringskassan) rather than by the employer.
25 working days of holiday each leave year. Paid holiday is earned during the previous year, so new employees may get unpaid days at first.
The employer pays 80% of pay for the first 14 days of sickness, minus a qualifying deduction. After that, sickness benefit comes from Försäkringskassan.
Shared between the parents: 390 days are paid at a rate based on income and 90 days at a flat SEK 180 a day.
Income-based days that cannot be transferred to the other parent.
Sweden has one shared system of parental leave rather than separate maternity and paternity leave. Employees have the right to full-time leave from work to care for a child until the child is 18 months old, and to use parental benefit days later. A mother must take at least 2 weeks' leave around the birth, and the other parent receives 10 days of temporary parental benefit in connection with the birth.
Set up each Swedish leave type in IceHrm with its own accrual, carry forward and approval rules, including pro-rata entitlements for part-time staff and holiday saved from earlier years. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
There is no legal minimum wage. Minimum pay rates, overtime premiums and many other conditions are set by sector collective agreements, which cover most employees, including those of employers bound by an agreement.
Under the Working Hours Act, unless a collective agreement sets different rules.
Also capped at 48 hours in 4 weeks or 50 hours in a calendar month. A further 150 hours of extra overtime is allowed for special reasons.
Overtime pay or time off in lieu is set by the collective agreement or the employment contract.
During annual leave, employees receive holiday pay under the Annual Leave Act: for monthly-paid staff this is normally the usual salary plus a holiday supplement, and for others a percentage of the earnings in the previous year. Collective agreements often set more generous terms.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so overtime under each collective agreement reflects what was actually worked. Time & attendance →
Residents pay municipal income tax on all earned income, and national income tax on the part above a threshold. Employers deduct preliminary tax from every salary payment using the Swedish Tax Agency's (Skatteverket) tax tables and report pay and tax for each employee monthly.
| Taxable income | Municipal tax | National tax |
|---|---|---|
| Up to SEK 643,000 | ~32% | 0% |
| Over SEK 643,000 | ~32% | 20% |
Non-residents working in Sweden are generally taxed at a flat 22.5% (SINK) in 2026, falling to 20% from 1 January 2027.
Employers pay social security contributions (arbetsgivaravgifter) on top of gross pay and benefits, with no upper limit. Employees pay only a small pension fee, which is normally offset by a tax credit.
Of total taxable pay and benefits, uncapped. Lower rates apply to some age groups; check Skatteverket for the current rules.
Paid by the employer on contributions to occupational pension plans.
On earnings up to a ceiling, withheld through tax; it is normally fully credited against income tax.
Most collective agreements require employers to pay into an occupational pension and to take out agreement-based insurance for employees. These costs come on top of the statutory contributions.
Build Swedish pay the way you already structure it, with your own salary components, deductions and formula columns, such as an employer contribution or occupational pension column. Want to know how well IceHrm handles payroll calculations for Sweden? Contact us or see Payroll →
Under the Employment Protection Act (LAS), an employer needs objective grounds to dismiss an employee on a permanent contract: either redundancy or reasons relating to the individual. Before dismissing for redundancy, employers must consult unions and consider redeployment, and follow the order-of-priority rules.
| Total length of employment | Notice |
|---|---|
| Less than 2 years | 1 month |
| 2 years, less than 4 years | 2 months |
| 4 years, less than 6 years | 3 months |
| 6 years, less than 8 years | 4 months |
| 8 years, less than 10 years | 5 months |
| 10 years or more | 6 months |
There is no statutory severance pay. Employees dismissed for redundancy may get support through transition agreements under collective agreements, and have a right of priority for re-employment.
Final pay includes holiday pay for earned but untaken leave.
Sweden has 13 public holidays. Several fall on a Sunday or Saturday by definition. Midsummer Eve, Christmas Eve and New Year's Eve are not official holidays, but are treated as days off under most collective agreements.
Leave groups give each office its own holiday calendar, so your Swedish team gets the right days off, including the eves your agreement treats as holidays, alongside colleagues in other countries. Holiday calendars →
Employment is permanent (tillsvidareanställning) unless a fixed-term form allowed by LAS is agreed. Employers must give employees written information about the key terms of employment, most of it within 7 days of the start date and the rest within a month.
Employers must register with Skatteverket as an employer before paying salaries, and file a monthly employer declaration with pay, tax and contributions for each employee.
Send employment terms for e-signing, store them on the employee's record with the contract type and end date, and track onboarding with task lists so nothing is missed in the first week. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Sweden, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Sweden? Talk to us.
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