What are employer contributions in Sweden in 2026?

The standard employer contribution is 31.42% of gross pay, with no cap. From 1 April 2026 to 30 September 2027, employers pay 20.81% on monthly pay up to SEK 25,000 for employees born 2003–2007. For employees aged 67+, only the 10.21% pension contribution applies.

Does Sweden have a minimum wage?

No. Pay floors come from collective agreements negotiated by unions and employer associations. Even without a signed agreement, aligning salaries and terms with the relevant agreement helps you hire and keep talent, and it supports work permit applications.

How does Good Balance Global hire employees in Sweden?

As your Employer of Record (EOR), we employ the person under Swedish law, file the monthly employer declaration with Skatteverket, and pay taxes on time. We can also set up an occupational pension, which most Swedish candidates expect.

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Payroll and benefits guide

Sweden

CapitalStockholm

Fiscal Year1 January - 31 December

Date Formatyyyy-mm-dd

CurrencySEK (Swedish Krona)

Payroll FrequencyMonthly

Employer Taxes20.81% – 31.42%

Employee Costs7% (offset by tax credit)

Overview

Languages: Swedish
Income tax: 32% – 52%
VAT: 25%; Reduced rates: 12%, 6%. Most food is taxed at 6% from 1 April 2026 to 31 December 2027; restaurant and catering services stay at 12%

Contributions

Employer

10.21%

Old-age pension

3.55%

Sickness insurance

2.64%

Labor market fee

2.00%

Parental insurance

0.30%

Survivors’ pension

0.10%

Work injury

12.62%

General payroll fee

20.81% – 31.42%

Total employer costNo cap. 20.81% on pay up to SEK 25,000/month for employees born 2003–2007, from 1 April 2026 to 30 September 2027; 10.21% for employees aged 67+

Employee

General pension contributionOn income up to SEK 673,038; normally fully offset by a tax credit

7% (offset by tax credit)

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

Swedish Tax Agency (Skatteverket)

Paid To

Preliminary income tax withheld from wages

Due Date

12th of the following month (17th in January and August) for most employers

Method

Monthly employer declaration at individual level (AGI) and payment to the tax account

Authority Payment

Swedish Tax Agency (Skatteverket)

Paid To

Employer contributions (arbetsgivaravgifter)

Due Date

12th of the following month (17th in January and August) for most employers

Method

Reported in the same AGI declaration

Minimum Wage & Working Hours

Minimum wage: None / —; No statutory minimum wage; set by sector agreements
Standard working hours: 40 hours per week
Overtime: Up to 200 hours per year under the Working Hours Act; pay is set by collective agreement or contract

Leave

Annual leave25 working daysHoliday pay of 12% of earnings or salary continuation plus a holiday supplement
Sick leaveEmployer pays days 2–1480% of pay after a waiting deduction; the Social Insurance Agency pays from day 15
Parental leave480 days per childShared between parents, with 90 days reserved for each; paid by the Social Insurance Agency
Paternity leave10 days at birthTemporary parental benefit paid by the Social Insurance Agency

Leave type	Duration	Notes
Annual leave	25 working days	Holiday pay of 12% of earnings or salary continuation plus a holiday supplement
Sick leave	Employer pays days 2–14	80% of pay after a waiting deduction; the Social Insurance Agency pays from day 15
Parental leave	480 days per child	Shared between parents, with 90 days reserved for each; paid by the Social Insurance Agency
Paternity leave	10 days at birth	Temporary parental benefit paid by the Social Insurance Agency

Termination

Probation period: Up to 6 months
Notice period: 1–6 months, based on length of service
Severance pay: No statutory severance; collective agreements may provide transition support
13th salary: Not mandatory
Notes: Dismissal requires objective grounds under the Employment Protection Act (LAS)

Benefits

Occupational pensionCommon
Required under most collective agreements and offered by most employers
Wellness allowance (friskvårdsbidrag)Common
Tax-free contribution toward exercise and wellness
Private health insuranceCommon
Faster access to care

Visas & Work Permits

Work permit
Requirements
Job offer with pay at or above the required salary level and terms in line with collective agreements
Processed by the Swedish Migration Agency
EU Blue Card
Requirements
Higher education or relevant experience and a qualifying salary

FAQ

Sources

Last updated: November 1, 2026

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