SECountry guide · Sweden

HR Services in Sweden

HR support for US, UK and international companies hiring in Sweden: Swedish contracts and policies, payroll coordination, compliance and recruitment. Build your Swedish team without building an HR department first.

Riddarholmen Church and Gamla Stan in Stockholm, Sweden
Capital: StockholmCurrency: SEK (Swedish krona)Official language: SwedishPopulation: 10.6 million
Key facts for employers
Minimum wageNo statutory minimum: set by collective agreements
Maximum working time40 hours a week, and no more than 48 hours a week averaged over up to 4 months, including overtime
Paid annual leave25 days a year, paid once earned through work in the previous year
Employer costs on top of wagesAbout 46% of gross wages (Eurostat, 2025)

Last reviewed October 2026. Collective agreements can set other terms.

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HR services in Sweden

Expand Into Sweden With an HR Partner Who Knows Swedish Labor Law

Sweden is the EU’s ninth-largest economy, spends a larger share of GDP on R&D than any other EU country, and ranks 2nd in the Global Innovation Index 2026. Its employment model works differently: there is no statutory minimum wage, collective agreements covering 88% of employees set minimum pay and much else that other countries put in law, notice grows to 6 months with service, and every employer must run a yearly pay survey.

Europe HR Solutions is your HR partner for Sweden. We prepare Swedish contracts, policies and handbooks, put payroll foundations in place and coordinate your payroll provider, support hiring and reward, and review your HR practices as Swedish law changes.

Expanding beyond Sweden? The same team covers 27+ European countries, so you manage one relationship instead of a provider in every market.

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HR outsourcing

HR Outsourcing in Sweden With Europe HR Solutions

One senior Europe HR Solutions team coordinates your HR in Sweden, working with independent in-country HR professionals from our European network who understand Swedish employment practice.

Everyday HR, handled

Payroll coordination, recruitment, compliance and employee relations for your team in Sweden, handled as one service, so you can focus on growing the business.

Compliance with Swedish labor law

We make sure your HR operations comply with Swedish law, and review your contracts and policies as statutory rules and collective agreements change.

Cost-effective HR

Outsourcing means you don’t need your own HR team in Sweden, which reduces cost and frees resources for growth.

Flexible engagement

We work ad hoc, on an interim basis, by project or on a retainer, from a few weeks to several years.

Employment law

Key Employment Regulations in Sweden

Statutes set the baseline, and a collective agreement, if you’re bound by one, can add to it or replace parts of it, so check both before you hire.

Show all 12 regulationsHide the regulations

Contracts and written terms

An employment contract can be oral, but you must give the main terms in writing within 7 calendar days of the start, and the rest within one month. Employment is open-ended unless it fits a fixed term the law allows: special fixed-term employment (särskild visstidsanställning), a substitute post, seasonal work or probation.

Working hours and overtime

Up to 40 ordinary hours a week. Overtime: at most 48 hours in 4 weeks or 50 in a calendar month, and 200 a year, plus 150 for special reasons. Total working time: at most 48 hours a week, averaged over up to 4 months. Rest: 11 hours daily, 36 weekly. Collective agreements can set other limits within EU rules.

Minimum wage and sector pay

Sweden has no statutory minimum wage. Collective agreements set minimum pay and covered 88% of employees in 2025, 83% in the private sector. You’re bound by one when you join an employers’ organization or sign an agreement directly with a union, and then you can’t agree terms with employees that conflict with it.

Paid leave and public holidays

25 days per holiday year (5 if the job starts after August 31), paid once earned the year before. As a rule, salaried staff get normal pay plus 0.43% (monthly) or 1.82% (weekly) of it per day; others 12% of the previous year’s pay. As a rule, 4 straight weeks fall in June to August. Public holidays aren’t leave days.

Sick pay (sjuklön)

For the first 14 days of illness, the employer pays 80% of pay, minus a qualifying deduction of 20% of a week’s average sick pay. A doctor’s certificate is needed after 7 calendar days. If illness continues past day 14, you report it to the Social Insurance Agency (Försäkringskassan) within 7 days, and the employee can claim sickness benefit.

Maternity and parental leave

Mothers can take 7 weeks off before and 7 after the birth, 2 of them compulsory. Each parent can take full leave until the child is 18 months old, and parents share 480 days of parental benefit per child from the Social Insurance Agency, 90 reserved for each parent. Employees give 2 months’ notice of leave where they can.

Probation (provanställning)

Probation can last up to 6 months, unless a collective agreement sets another length within EU rules, and either side can end it early unless the contract rules that out. To end it, the employer gives 2 weeks’ notice and tells the union if the employee is a member. If no one ends it, it becomes open-ended.

Notice and dismissal (uppsägning)

Dismissal needs objective grounds (sakliga skäl): redundancy or reasons tied to the employee, and not if you can reasonably offer other work. Written notice: 1 month, rising to 6 months after 10 years. In redundancies, after up to 3 key exemptions, longer service has priority. Senior managers fall outside these rules, and staff aged 69 or over have less protection.

Employee representatives

If bound by a collective agreement, you negotiate with the union before major changes; without one, with the unions concerned before redundancies or a business transfer. Workplaces need a safety representative from 5 employees and a safety committee from 50. In companies with 25 or more employees, a union bound by an agreement can claim 2 board seats.

Systematic work environment management (SAM)

Every employer must plan, lead and check its operations so the work environment meets the rules, under the Work Environment Act and the Work Environment Authority’s regulation AFS 2023:1, in force since January 1, 2025. That means a work environment policy and routines for who does what and when, both in writing from 10 employees, tasks assigned to managers or staff with the authority, resources and knowledge to act, regular investigations with written risk assessments, immediate measures or a written action plan with dates and owners, and a yearly follow-up, documented from 10 employees. Bring in occupational health services where in-house expertise isn’t enough.

Social security

Employer contributions (arbetsgivaravgifter): 31.42% of gross pay in 2026, less for staff 67 or over at the start of the year and, until September 2027, some 19- to 23-year-olds. Non-wage costs are 31.7% of labor costs, about 46% on top of gross wages (Eurostat, 2025). Employers register with the Tax Agency (Skatteverket) and report pay and tax per employee monthly.

Pay transparency

The EU Pay Transparency Directive was due by June 7, 2026, but in March 2026 the government said it would not, for now, put a bill on it to parliament and would push to delay and renegotiate it at EU level. Every employer must survey and analyze pay differences between women and men each year, in writing from 10 employees.

Why Sweden

The Benefits of Expanding to Sweden

What Sweden offers companies that set up properly.

€600 billion

A major EU economy

Sweden’s GDP was €600.4 billion in 2025, the ninth largest in the EU (Eurostat).

3.53%

R&D investment

Sweden spent 3.53% of GDP on R&D in 2024, the EU’s highest share, against 2.26% for the EU (Eurostat; EU estimate).

No. 2

Innovation

Sweden ranks 2nd of 139 economies in the Global Innovation Index 2026.

€183 billion

Exports

Swedish goods exports reached €183.3 billion in 2025, 38.9% of them machinery and transport equipment (Eurostat).

No. 3

Knowledge-intensive jobs

57.8% of employment in Sweden is knowledge-intensive, 3rd of 139 economies (Global Innovation Index 2026).

No. 1

Researchers

Sweden has 10,349 full-time-equivalent researchers per million people, 1st of 139 economies (Global Innovation Index 2026).

What to plan for

The Challenges of Expanding to Sweden

Six things to plan for before your first hire.

01

Collective agreements

Agreements covered 88% of employees in 2025. Once you’re bound by one, you can’t agree terms with employees that conflict with it.

02

Notice that grows with service

Employer notice rises with length of service, from 1 month to 6 months after 10 years, and dismissal needs objective grounds.

03

Employment costs

Employer contributions are 31.42% of gross pay in 2026, and non-wage costs add about 46% on top of gross wages (Eurostat, 2025).

04

Union negotiations

Employers with an agreement negotiate with the union before major changes, and every employer with the unions concerned before redundancies or a business transfer.

05

Long parental leave

Parents share 480 days of parental benefit per child and can take full leave until the child is 18 months, so plan cover early.

06

A yearly pay survey

Every employer must survey and analyze pay differences between women and men each year, in writing from 10 employees.

Where companies get caught

Key HR Compliance Risks in Sweden

Eight mistakes to avoid in Sweden, and what each one leads to.

High risk

Dismissal without objective grounds

As a rule, a dismissal must rest on redundancy or reasons tied to the employee. Without objective grounds, it’s declared invalid if challenged in time, and damages can follow.

High risk

Union negotiations skipped

Employers bound by an agreement must negotiate with the union before major changes, and every employer with the unions concerned before redundancies or a business transfer. Breaches of the Co-determination Act cost damages.

High risk

Fixed terms that run too long

As a rule, special fixed-term employment becomes open-ended after more than 12 months with you in five years, and a substitute post after more than 2 years in five.

High risk

Dismissal linked to parental leave

A dismissal made only for reasons linked to parental leave is declared invalid if the employee asks, and the employer pays damages.

Medium risk

Working time limits breached

Breaking limits on ordinary hours, overtime or rest without a collective agreement costs 1% of the price base amount per unlawful hour and employee: SEK 592 in 2026, SEK 596 in 2027.

Medium risk

Written terms given late

The main terms must be in writing within 7 calendar days of the start, the rest within one month. Breaches of the Employment Protection Act cost damages.

Medium risk

Redundancy order ignored

In redundancies, longer service has priority once you exempt up to 3 key employees. Breaking the order doesn’t void the dismissal, but it costs damages.

Medium risk

Staff register missing

As a rule, restaurants, beauty and body care, vehicle services, laundries and food and tobacco wholesalers keep a staff register, unless only the owner, a spouse or children under 16 work there; so do building sites above a cost threshold. Without one, the Tax Agency charges SEK 12,500 plus SEK 2,500 per unrecorded person.

Not sure where you stand? Our HR Compliance Audit gives you a structured review of your HR compliance risk in Sweden, with a clear action plan.

Where international companies invest

Key Sectors in Sweden

Sweden’s leading export sectors in 2025, based on Eurostat trade data.

Machinery and transport equipment38.9% of goods exports in 2025, led by road vehicles (12.9%) and general industrial machinery (6.0%).
Paper, steel and other processed materials16.5% of goods exports in 2025, led by paper and paperboard (5.1%) and iron and steel (3.6%).
Chemicals and pharmaceuticals14.7% of goods exports in 2025, led by medicinal and pharmaceutical products (7.5%) and plastics in primary forms (1.9%).
Free guide

Free HR Guide for Sweden

Cover of the free guide Top 5 HR Challenges in Sweden and How to Overcome Them

Top 5 HR Challenges in Sweden and How to Overcome Them

Your essential guide to Swedish labor laws and HR best practices.

Download now PDF · 10 pages

Want to read more first? See our article on HR and compliance in Sweden.

FAQ

Hiring in Sweden: Your Questions Answered

Questions companies ask before they hire in Sweden.

Do we need written employment contracts in Sweden?

Not always. A contract can be oral, but you must give the employee the main terms in writing within 7 calendar days of the start, such as the job, pay, working hours and notice, and the rest within one month. Employment is open-ended unless it fits one of the fixed terms the law allows. We draft contracts that comply with Swedish law.

Is there a probation period in Sweden?

Only if you agree one. Probation can last up to 6 months, unless a collective agreement sets another length within EU rules, and either side can end it early unless the contract rules that out. To end it, the employer gives 2 weeks’ notice and tells the union if the employee is a member. If no one ends it, it becomes open-ended. We make sure your contracts reflect these rules.

How much does an employee in Sweden cost on top of salary?

Non-wage costs, such as employer social contributions, add about 46% on top of gross wages (Eurostat, 2025). The statutory employer contribution alone is 31.42% of gross pay in 2026, and the employer also pays sick pay for the first 14 days of illness. Our Compensation & Benefits Strategy builds a reward framework aligned with Swedish law, market data and internal equity.

How many hours can staff in Sweden work?

Up to 40 ordinary hours a week. Overtime is capped at 200 hours a year, plus up to 150 for special reasons, and total working time at 48 hours a week, averaged over up to 4 months. Staff get 11 hours’ daily and 36 hours’ weekly rest. Collective agreements can set other limits within EU rules; senior managers and staff who set their own hours are outside these rules. We structure work schedules that comply and still leave room for flexibility.

What happens when an employee in Sweden is off sick?

The employer pays sick pay for the first 14 days: 80% of pay, minus a qualifying deduction of 20% of a week’s average sick pay. After 7 calendar days, the employee needs a doctor’s certificate. If the illness continues past day 14, you report it to the Social Insurance Agency within 7 days, and the employee can claim sickness benefit from it. We put clear sick leave policies in place.

How much paid leave do employees in Sweden get?

25 days of annual leave each holiday year (5 if the job starts after August 31), paid once earned through work in the previous year, and, as a rule, 4 weeks in a row in June to August. Public holidays don’t count as leave days, and collective agreements usually set which of them are days off. We keep you compliant with leave entitlements and help you offer a competitive benefits package.

Is it really that hard to terminate employees in Sweden?

It’s strict, not impossible. Dismissal needs objective grounds (redundancy or reasons tied to the employee), and written notice runs from 1 month to 6 months after 10 years’ service. In redundancies, you can exempt up to 3 key employees, then longer service has priority. Without objective grounds, a dismissal is declared invalid if the employee challenges it in time. Senior managers and staff aged 69 or over have less protection. We guide you through every step.

Can we put everyone on fixed-term contracts in Sweden?

Not indefinitely. Special fixed-term employment (särskild visstidsanställning) needs no stated reason, but it becomes open-ended after more than 12 months with you in five years. The other fixed terms the law allows are a substitute post, which becomes open-ended after more than 2 years in five, seasonal work and probation. A collective agreement can set other rules for both limits. We make sure every fixed-term contract meets these rules.

Do collective agreements apply to us in Sweden?

If you’re bound by one, yes. You’re bound when you join an employers’ organization or sign an agreement with a union, and then you can’t agree conflicting terms with employees. Agreements covered 88% of employees in 2025, but 44% in firms with fewer than 10 employees (National Mediation Office), and they set minimum pay, since Sweden has no statutory minimum wage. We keep you compliant with any agreement that applies, with as much flexibility as it allows.

Do we need employee representatives in Sweden?

Workplaces need a safety representative from 5 employees and a safety committee from 50. If you’re bound by a collective agreement, you negotiate with the union before major changes, and without one, with the unions concerned before redundancies or a business transfer. In companies with 25 or more employees, a union bound by an agreement can claim 2 board seats. We guide you in working with employee representatives.

What does pay transparency mean for us in Sweden?

The EU Pay Transparency Directive was due by June 7, 2026, but in March 2026 the government said it would not, for now, put a bill on it to parliament and would push to delay and renegotiate it at EU level. Already, every employer must survey and analyze pay differences between women and men each year, in writing from 10 employees. Our Compensation & Benefits Strategy covers EU Pay Transparency readiness.

What happens if we fail a labor inspection in Sweden?

The Work Environment Authority (Arbetsmiljöverket) supervises the Working Hours Act. Breaking its limits on ordinary hours, overtime or rest without a collective agreement costs a sanction fee of 1% of the price base amount per unlawful hour and employee: SEK 592 in 2026, SEK 596 from January 1, 2027. Separately, the Tax Agency (Skatteverket) charges SEK 12,500 plus SEK 2,500 per unrecorded person where a required staff register is missing, such as in a restaurant. We conduct regular compliance audits so your documentation is ready for inspection.

Free consultation

Plan Your Swedish Expansion With an HR Specialist

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