SWEDEN PEO & EOR
Hire in Sweden without a local entity today
As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.
Get started and hire in Sweden today with Gibson Watts Global.
DID YOU KNOW
- Sweden is made up of more than 260,000 islands – the most of any country in the world.
- The country is almost entirely powered by renewable energy sources, with around 98% of its electricity coming from hydropower, wind, and nuclear energy.
- Swedes have one of the world’s best work-life balances, with a strong culture of flexible working hours and generous parental leave policies.
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Sweden EOR Services
Streamlining Growth in Scandinavia’s Innovation Hub
Sweden is renowned for its progressive economy, advanced technology sector, and highly educated workforce. As one of Europe’s most innovation-driven nations, it offers an excellent environment for businesses seeking to expand into Northern Europe.
However, Sweden’s strict employment regulations, collective bargaining agreements, and detailed payroll systems can be complex for foreign employers. Partnering with Gibson Watts Global as your Employer of Record (EOR) in Sweden allows you to hire quickly and compliantly. We handle employment contracts, payroll, benefits, and tax filings – ensuring your business meets all Swedish employment and compliance standards.
Working in Sweden
Financial Year Dates
Sweden’s financial year runs from January 1st to December 31st.
Minimum Wage
Sweden does not have a statutory national minimum wage. Instead, wages are determined through collective bargaining agreements (CBAs) between trade unions and employer organizations. Typical entry-level wages range between SEK 25,000 and SEK 30,000 per month depending on the industry.
Standard working hours
The standard workweek is 40 hours, usually spread across five 8-hour days. Flexitime arrangements and shorter working days are common in many sectors.
Overtime
Overtime is generally limited to 48 hours over a four-week period or 200 hours per year. Overtime pay is typically 150% of the regular hourly rate for the first two hours and 200% thereafter, though specific rates are often set by CBAs.
Holiday Allowance
Employees are entitled to a minimum of 25 days of paid annual leave per year. Some CBAs offer additional days. Public holidays are separate from annual leave.
Sick Leave
Employees receive 80% of their salary for the first 14 days of sickness, paid by the employer. From day 15 onwards, benefits are paid by the Swedish Social Insurance Agency (Försäkringskassan).
Maternity & Paternity Leave
Sweden offers one of the most generous parental leave systems in the world. Parents are entitled to a combined total of 480 days of paid parental leave per child, which can be shared between them. Each parent is guaranteed at least 90 days exclusively. The benefit is generally 80% of regular pay for most of the leave period.
Public Holidays
Sweden observes the following national holidays:
- New Year’s Day
- Epiphany
- Good Friday
- Easter Monday
- Labour Day
- Ascension Day
- National Day of Sweden
- Midsummer Day
- All Saints’ Day
- Christmas Eve
- Christmas Day
- Boxing Day
Social Contributions
Sweden’s social security system is financed through both employer and employee contributions.
Employers:
- Social Security Contributions: approximately 31.42% of gross salary (covering pension, health insurance, parental leave, and unemployment insurance).
Employees:
- Pension Insurance: 7% of gross income (covered through tax), plus optional private contributions.
- Employees generally do not make direct social security contributions unless covered by specific occupational schemes.
Income Tax
As of 2025, Sweden applies both national and municipal income taxes.
- Municipal tax: 29 – 35% (average 32%)
- National tax: An additional 20% applies to annual income above SEK 615,300.
Residents are taxed on worldwide income, while non-residents are taxed only on income earned in Sweden.
Health Care
Sweden’s healthcare system is publicly funded and decentralized, offering universal access to residents. Medical services, including primary care, hospital treatment, and specialist consultations, are heavily subsidized, with minimal patient fees. Many employers also provide private health insurance for quicker access to certain services.
Visas
Foreign nationals who wish to work in Sweden must obtain the appropriate visa or permit.
Common options include:
- Work Permit: Required for non-EU/EEA nationals who have a job offer from a Swedish employer. Typically valid for up to two years and renewable.
- EU Blue Card: For highly qualified professionals with a university degree and a high-salary job offer.
- Business Visa: For short-term stays involving business meetings, negotiations, or research (up to 90 days).
EU/EEA and Swiss citizens can live and work in Sweden without a visa but must register with the Swedish Tax Agency if staying longer than 12 months.
13th salary?
Sweden does not have a legal requirement for a 13th salary, but some employers in the private sector offer annual performance-based bonuses.
Learn more here: 13th Salary Guide
Cultural Information
Sweden’s culture values equality, consensus, and respect for personal space. The Swedish concept of lagom – meaning “just the right amount” – influences both work and life, emphasizing balance and moderation.
Swedish cuisine highlights simplicity and local ingredients, with traditional dishes like meatballs with lingonberry sauce, gravlax (cured salmon), and smörgåsbord buffets.
Fika, the cherished coffee break shared with friends or colleagues, is a cornerstone of Swedish daily life and workplace culture. Combined with a love of nature and sustainability, it reflects Sweden’s focus on quality of life and social wellbeing.