HR Software for Sweden
Leave Policy
Maternity Leave
Pregnant employees are entitled to 240 days of paid leave. 49 days must be taken before the birth of the child and at least 49 days after the birth of the child. The remaining days can be divided into up to three periods with your partner. The employee receives almost 80% of his salary for the first 195 days and SEK 180 per day for the remaining 45 days. The Swedish Social Security Agency (Försäkringskassan) is responsible for this payment.
Paternity Leave
Employees are entitled to 240 days of paid paternity leave. 10 additional days can be taken before or after the birth of the child. The remaining days can be divided into three periods. Only 30 days can be taken at the same time as your partner.
The employee receives 80% of his salary for the first 195 days and SEK 180 per day for the remaining 45 days. The Swedish Social Security Agency (Försäkringskassan) is responsible for this compensation.
Parental Leave
In Sweden, maternity and paternity leave are considered parental leave. Therefore, both parents have the same right to take vacation.
Employees are entitled to a total of 480 working days of parental leave. Each parent is entitled to 240 days, and they can decide how to divide the time up to 150 days. The Swedish Social Security Agency pays the salary during this period.
| Period | Pay | Payer |
|---|---|---|
| 0 – 390 days | % of the salary (almost 80%) | Social Insurance |
| 391 – 480 days | SEK 180 per day | Social Insurance |
Sick Leave
Employees are entitled to 90 days of paid sick leave. Depending on the duration, this vacation is paid at different rates and by different payers:
| Period | Pay | Payer |
|---|---|---|
| 2 – 14 days* | 80% of base salary | Employer |
| 15 – 90 days | 25-80%** | Social Insurance |
*Each sick period begins with a waiting period equal to 20% of an average working week and is legally unpaid.**The exact amount will be calculated by Social Security when the worker submits the application on their platform and provides the required information. The maximum contribution is SEK 810 per day.
Pay & Tax
Minimum Wage Requirements
The law does not contain any provisions regarding the minimum wage. Minimum wages can be regulated by collective bargaining agreements (CBA) if they apply to the company.
Individual Income Tax
Income tax is calculated at progressive rates. Several additional factors can affect overall rates, such as: B. the household status, the number of children and the municipality in which the employee lives.
| Gross Annual Income | National Tax Rate (%) | Municipal Tax Rate (%) |
|---|---|---|
| Up to SEK 598,500 | 0% | 32% |
| Over SEK 598,500 | 20% | 32% |
Payroll Cost
Monthly charges
- Social security contributions – 31.42%*
- Long-term disability insurance – Average cost: SEK 485**
*Social insurance contributions include the obligatory employer contributions to health insurance, parental insurance, old-age and survivor’s pension, labor market, workers’ compensation insurance and general payroll tax. Estimated costs vary for workers born between 2005 and 2007, between 1938 and 1956, or in 1937 or earlier.
**The exact cost of long-term disability insurance is determined upon enrollment and depends on the employee’s salary and age.
Annual costs
Holiday pay – 12% of the employee’s variable remuneration (salary, bonuses, overtime pay, etc.) during the holiday year (April to March)
These costs are estimates and are for general information purposes only. To fully understand all associated costs and fees associated with the terms of an employment contract for this country, please contact our sales team for a quote.
Overtime Pay & Maximum Hours
The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday. Pay for overtime is not mandatory and may be included in salary. If this is stipulated in an employment contract, overtime can also be worked outside of standard working hours. Employees can work a maximum of 50 hours of overtime per month and a maximum of 150 hours per year. For additional hours, employees receive an hourly rate of 168% of the hourly rate.
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.
In Sweden there is no such thing as termination at will. Dismissals in Sweden can be made by the employer, the employee or by mutual agreement. To terminate a contract, each party must provide the correct notice period.
Compliant terminations are:
- Voluntary by the employee
- By mutual agreement
- Through expiry of the contract
- Unilaterally by the employer due to:
- Probation period
- Objective reasons
- Performance due to unsuitability for the position
- Wrongdoing
- Collaboration problems
- Refusal to work
Notice Period
The minimum notice period is 30 days and increases depending on the length of employment:
- 30 days if you have been employed for less than two years.
- 60 days if the employment relationship lasts between two and four years.
- 90 days for an employment period of between four and six years.
- 120 days for an employment period of between six and eight years.
- 150 days with a length of service of eight to ten years.
- 180 days if you have been with the company for more than ten years.
Severance for Employees
There are no legal regulations regarding severance payments in Sweden. During the notice period, the employee receives a normal salary.
Statutory Time Off
Paid Time Off
Full-time employees are entitled to 25 days of paid time off per year. PTO is credited monthly at 2.08 days per month. Employees earn their vacation from April 1st to March 31st of the following year.
For part-time employees, PTO is based on the number of days worked per week. If the employee works 5 days a week, he is entitled to 25 days. If the employee works fewer days, he will be charged pro rata.
The vacation entitlement is mandatory and amounts to 12% of the employee’s gross salary. The employer is obliged to grant the employee four consecutive weeks from June to August.
Public Holidays
There are 13 national holidays in Sweden, including:
- New Year’s Day
- Epiphany
- Good Friday
- Easter Sunday
- Easter Monday
- Labor Day
- Ascension Day
- Whitsunday
- National Day
- Midsummer Day
- All Saints’ Day
- Christmas Day
- Boxing Day
Onboarding
Onboarding
Onboarding takes 2 working days after the customer signs the SOW.
Each person must have a social security number and provide it before signing the agreement. If the employee does not have a social security number, he or she must contact the tax authority and request a temporary number.
Additional Info
Employment Contract Details
The contracts are in English and can be bilingual. They must be in writing and signed by both parties.
The contract must contain mandatory information, the name of the employee, the date of start of work, the duration of the employment relationship, the vacation conditions and others.
Probation Period
Employees hired through IceHrm have a probationary period of 90 days, which you can extend up to 180 days. From January 2022, it will be IceHrm’s corporate policy to include probationary periods in all future employment contracts.
According to the law, fixed-term employment contracts cannot contain a probationary period.
The maximum trial period for permanent contracts is 180 days (6 months).