Sweden Employer of Record Services
Payroll & Tax in Sweden
A beginners guide to understanding payroll and tax in Sweden
Employer of Record Sweden
Download our full Sweden Employment Guide
Find out all about employing in Sweden
How we can help
Our fully-compliant payroll service in Sweden ensures your employees are paid on time, every time
Whatever the territory or region, you need to attract and retain the best talent. But different countries and different cultures mean different employee expectations. Sweden is no exception.
Payroll is key for any business; paying the correct salary to your business’s employees is vital. Using Agility EOR means that your employees in Sweden are paid on time, every time.
Agility EOR offers the following payroll services in Sweden:
- Salaries paid per month, in local currency
- Electronic payslips
- Statutory filing completed by us
- End of year reporting
what to expect
How does Payroll in Sweden work?
Pay your staff once a month
In Sweden there is only a requirement to pay salary in 12 equal instalments.
Discretionary bonuses
Bonuses are generally defined as discretionary, and therefore not required to be placed in the contract of employment.
National minimum wage
A statutory minimum wage does not exist. Collective bargaining agreements (CBA) may govern minimum wages if they are applicable to the company.
Our approach
It is common in Sweden to pay employees once per month, and Agility EOR make the payment on the last working day of every month. You can also agree whether overtime should be paid (this is not a requirement so long as they receive the national minimum wage rate) or given as time off in lieu.
Tax in Sweden
Swedish employers’ costs include:
Frsakringskassan
Employers pay the Swedish Social Insurance Agency (Frsakringskassan) the equivalent of 31.42% of their employees' salaries (no cap). This applies to overseas employers with or without a permanent establishment in Sweden.
Employer Contributions
Breakdown of employer contributions:
- 11.62% – General Salary Tax
- 10.21% – Pension Insurance
- 3.55% – Health Insurance
- 2.64% – Unemployment Insurance
- 2.60% – Parental Benefit
- 0.60% – Surviving Dependents Pension Insurance
- 0.20% – Workplace Accident Insurance
Taxes on income are assessed at a progressive rate structure. Household status, family size, and the employee’s home municipality are just a few more variables that could affect average rates.
Wondering if expanding
in Sweden is right for you?
Read on or speak to a member of our team now
learn more
We are EOR experts in Sweden
We have extensive experience helping businesses expand their workforce in Sweden . Take a look at our areas of expertise to find out more:
Learn more about how you can attract and retain staff in Sweden with both statutory and enhanced employee benefits
Wondering what it’s like to live and work in Sweden? We’ve got you covered in our extensive guide, including the do’s and don’ts
Enhance your understanding of what’s included with Statutory Leave in Sweden
Unsure about what’s required when employing staff in Sweden? Find out about Swedish Work Permits & Visas here
We provide a fully-managed EOR Service in Sweden, including HR, Payroll and Legal Compliance support
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
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Frequently Asked Questions
Payrolling the employees is a key part of the service offered by an employer of record company. The EOR will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.
Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.
Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.
We find that most of our clients are in the Tech, IT, Finance and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.
As a private company, we’re not beholden to shareholders or asset-shredding Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so.
We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.
We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!