Employee Leasing in Sweden

• Employee leasing in Sweden allows quick and easy access to the regional market of Nordic countries and the large market of the European Union.
• Expanding business activity in Sweden through employee leasing reduces investment risk, giving companies much-needed flexibility in their market entry.
• Delegating the administrative management of employees to FMC Group through employee leasing allows businesses to concentrate their attention on their growth strategy.

• Selecting candidates according to the client’s needs and requirements;
• Negotiating and signing employment contracts after the client’s approval;
• Providing accounting services that follow international standards;
• Paying social contributions and taxes according to Swedish regulations;
• Paying all types of expenses and allowances after the client’s approval;
• Monitoring employees’ paid leaves;
• Negotiating and implementing private health insurance if requested;
• Maintaining continuous and regular communication with the client regarding the management of their employees.

• Sweden is known as a global leader in the technology industry thanks to its heavy focus on research and development through partnerships between Swedish universities, research institutes, and the private sector. Stockholm is the world’s second-largest tech hub globally, with the presence of around 6.3 billion-dollar tech companies for every one million people. Some of the largest Swedish tech companies include Spotify, King, Truecaller, etc.
• The Swedish labor force is one of the world’s most well-educated and productive. Swedish professionals are known for having great decision-making and problem-solving skills, as students are encouraged from the early years of school to be proactive, take initiative, and work on complex problems.
• As a member state of the European Union, Sweden provides access to a large consumer market of 500 million individuals. Moreover, the Nordic market (Sweden, Denmark, Finland, and Norway) represents one of the largest economies in the world and its population has a very high purchasing power. The Nordic purchasing power is valued at around EUR 23,025 per inhabitant, which is almost double the average European purchasing power, estimated at around EUR 13,600 per inhabitant.
• Sweden enjoys great economic and political stability. The country is known for its high level of transparency, strong public finances, and extensive public investments in infrastructure. This has helped Sweden create an extremely friendly business environment, based on modernity and openness. Sweden ranked 10^th worldwide in the World Bank’s 2020 Doing Business index.
• Business Sweden is a great source of up-to-date information about investment opportunities in Sweden and insights into the Swedish market.

Minimum Wage and Payroll

• There is no statutory minimum wage in Sweden, but there are several collective bargaining agreements defining the minimum salary in some industries.
• Salaries in Sweden are paid monthly, generally before the 25^th day of each month.

Social Contributions and Taxes

Employer Contributions
General Payroll Tax	11.62%
Retirement Pension	10.21%
Health Insurance	3.55%
Labor Market Fee	2.65%
Parental Insurance	2.60%
Survivors Pension	0.60%
Occupational Injury Insurance	0.20%
Total	31.43%
Employee Contributions
Pension Insurance	7.00%
Employee Income Tax
Up to SEK 540,700 (EUR 51,096) per year	0.00%
More than SEK 540,700	20.00%

 

Working Hours and Overtime

• Swedish law defines the weekly limit of working hours at 40, with eight hours per day.
• The pay rate for overtime work is regulated by collective bargaining agreements or employment contracts.
• Overtime work cannot exceed eight hours in one week, 50 hours in one month, or 200 hours in one year.

Vacation Days

• Employees in Sweden are entitled to 25 days of paid annual leave. Vacation days can be accumulated for up to five years.
• Sweden commemorates 10 public holidays:
  • New Year’s Day: January 1^st
  • Epiphany: January 6^th
  • Good Friday: Between April and May (moveable)
  • Easter Monday: Between April and May (moveable)
  • Labor Day: May 1^st
  • Ascension Day: Between May and June (moveable)
  • National Day: June 6^th
  • Midsummer’s Day: Saturday between June 20^th–26^th
  • All Saint’s Day: Saturday between October 31^st–November 6^th
  • Christmas Holiday: December 25^th–26^th

Parental Leave and Sick Leave

• Pregnant employees in Sweden are entitled to 14 weeks of paid maternity leave, including seven weeks before birth and seven weeks after. Pay during maternity leave is provided by social security.
• New fathers can take 10 days of paid paternity leave, covered by social security.
• Parents in Sweden are entitled to 480 days of unpaid parental leave, which can be split between the parents or taken by one single parent until the child is eight years old. Employees can also use their parental leave to reduce working hours.
• Employees in Sweden are entitled to sick leave for as long as their doctor recommends. The first day of sick leave is unpaid. From the second until the 14th day, the employer has to cover pay at a rate of 75% to 80% of the regular salary. Afterward, social security covers pay at the same rate.

Notice Period

• Employees in their first year of service have to give one month’s notice.
• Employees who have been working for the same employer for more than one year have to give a two-month notice.

Further Useful Information

• The Swedish Social Insurance Agency has published several detailed guides explaining numerous aspects of labor laws in Sweden.