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POPULATION

10.6m

CURRENCY

kr (SEK)

CAPITAL CITY

Stockholm

Overview

Sweden, officially the Kingdom of Sweden, is a country in Northern Europe. Known for its stunning landscapes, diverse culture, and innovative technology, Sweden is a popular destination for tourism and cultural exploration. From the bustling streets of Stockholm to the serene landscapes of Lapland, Sweden offers a wealth of cultural and natural attractions.

Sweden's economy is diverse, with key sectors including manufacturing, services, and agriculture. The country is a major exporter of goods and a popular tourist destination, attracting visitors from around the world with its beautiful cities, historic sites, and world-renowned cuisine.

Disclaimer: This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

Local Employment Regulations

Employment Contracts

Written Agreements

In Sweden, a written employment contract is not necessary. Employment contracts can be written or oral and are not subject to formal requirements.

Employers must provide employees with a written statement of employment particulars within 1 month of work commencement unless the employment lasts less than 3 weeks. The information must contain the following particulars:

  • Names and addresses of both parties, employment start date
  • Job description, occupational designation, or title
  • Fixed or indefinite term of the employment or the applicable probationary period
  • Pay rate, benefits, and payment schedule
  • Length of annual leave and the normal working day or working week
  • Collective bargaining agreement, where applicable and relevant

A non-compete clause in an employment contract must be in writing. The restriction must be reasonable in terms of location and time.

Oral Agreements

Under Swedish labor law, employment contracts can be made in any form and are not subject to formal requirements. However, employers must still provide employees with a written statement of employment particulars within one month of work commencement.

Implied Agreements

Under Swedish labor law, employment contracts can be made in any form and are not subject to formal requirements. The Employment Protection Act states that an employment contract can be made in any form. However, employers must still provide employees with a written statement of employment particulars within 1 month of work commencement.

Working Hours

In Sweden, the normal working hours of full-time employees are 40 hours per week. If due to the nature of the activity, an employee must be at the workplace waiting to carry-out work as needed, the employee may claim on-call time to a maximum of 48 hours over four weeks or 50 hours per calendar month.

While Sweden does not have a specific legislation regarding remote working in place, the Work Environment Act states that employers are responsible for an employee's work environment even if they are working from home. Employers must do everything necessary to prevent the employee from being exposed to ill health or accidents. In addition to the statutory breaks, employees must be able to take shorter breaks that count towards working time.

Public Holidays

New Year’s Day (nyårsdagen): January 1, Epiphany (trettondedag): January 6, Good Friday (långfredagen): The Friday before Easter Sunday, Easter Sunday (påskdagen): The Sunday closest after the full moon that occurs on or closest after 21 March, Easter Monday (annandag påsk): The day after Easter Sunday, International Workers’ Day (första maj): May 1, Ascension Day ( Kristi himmelsfärdsdag): Sixth Thursday after Easter Sunday, Pentecost (pingstdagen): Seventh Sunday after Easter Sunday, National Day of Sweden (Sveriges nationaldag): June 6, Midsummer’s Day (midsommardagen): The Saturday during the period 20–26 June, All Saints’ Day ( alla helgons dag ): The Saturday during the period 31 October–6 November, Christmas Day (juldagen): 25 December, Boxing Day (annandag jul): 26 December.

Probationary Period

Probationary periods cannot be longer than 6 months. Provided that a 2-week notice is given, either party can terminate the employment relationship at any time and for any reason (except those discriminatory) during the probationary period.

An employer may decide not to offer indefinite-term employment to a worker on probation. In this case, during the probationary period, the employer must provide the employee with at least 2 weeks' notice of the intention not to continue employment on the probation's expiry. In the absence of such notice, upon expiry of the probation period, employment will be for an indefinite term.

Employment Termination/Severance

Notice Period

The notice period for indefinite-term employees is calculated as follows:

  • 0-2 years of employment: 1 month's notice
  • 2-4 years of employment: 2 months' notice
  • 4-6 years of employment: 3 months' notice
  • 6-8 years of employment: 4 months' notice
  • 8-10 years of employment: 5 months' notice
  • More than 10 years of employment: 6 months' notice

The notice must be given in writing, given personally to the employee, and contain certain formalities (particularly, the reason for termination and how the employee should proceed if they wish to challenge the termination).

In the case of fixed-term employment contracts, when the contract of an employee employed for at least 12 months in the last 3 years ends and will not be renewed, the employer must provide at least 1 month's notice before the contract's expiry.

Severance Benefits

Sweden has no statutory severance pay requirements for employers. Severance pay is usually stipulated in individual employment contracts and collective agreements.

The collective bargaining foundation, TRR Trygghetsrådet, assists employees whose employment has been terminated due to a shortage of work or illness.

AGE provides 70% of the previous salary, including compensation from the unemployment insurance fund. Depending on the employee's age, AGE is payable 6 to 18 months after cessation of employment.

Compensation

Minimum Wage

Sweden has no statutory minimum wages. Instead, the minimum wage is determined through collective bargaining agreements (overenskomster), which can vary by industry.

Wages are set taking into account the responsibility and level of difficulty of the work tasks, work environment, nature of tasks, skills required, independence in job, industry, and other factors.

The frequency of salary payment is determined by the individual employment contract.

Overtime, Holiday & Vacation Pay

Overtime hours may not exceed 48 hours over four weeks, 50 hours per calendar month, and 200 hours per calendar year. Overtime in excess of general overtime is limited to a maximum of 150 hours in a calendar year. It is permitted if there are special grounds for allowing it and no other reasonable solution has been possible. The laws of Sweden also offer provisions for on-callhours during which an employee is at the workplace to work if needed. An employee may not perform more than 48 on-call hours over a four week period or 50 hours over a calendar month.

With no national regulation on overtime pay, rates are determined either by collective agreement or mutual agreement between employee and employer. There are no special payment regulations for working on public holidays.

Annual leave pay depends on how an employee is compensated. For employees paid weekly or monthly, the same-pay rule applies with certain exceptions. The holiday supplement for weekly-paid employees is 1.82% of weekly pay. The holiday supplement for monthly-paid employees is 0.43% of monthly pay. For others, the percentage rule applies, under which employees receive 12% of the annual compensation for annual leave.

Immigration & Visas

Visas

To visit Sweden, individuals must have a Schengen Visa unless they are nationals of the UK, Australia, Canada, and the United States. This visa allows an individual to stay in Sweden for up to 90 days. Those who wish to stay longer than 3 months require a visitor's residence permit.

A Schengen Visa may be granted for the following purposes:

  • Visiting relatives or friends (requires an invitation from the host)
  • Business or conference visits, seminars, or similar arrangements (requires an invitation from the host company)
  • Tourism
  • Medical treatment (requires a medical certificate detailing the treatment and proof that money has been deposited in Sweden for the same)
  • Religious purposes (requires an invitation from a religious organization/assembly)
  • Studies and research (requires an invitation or proof of acceptance from a university in Sweden)
  • Internship or volunteering (requires an invitation from the internship/volunteer organization)

EU citizens don't need a permit to visit, work, or live in Sweden. EU nationals may stay for an unlimited period but must register with the local authorities if staying longer than three months.

Work Permits

Citizens of countries outside the EU must have a work permit to work in Sweden. To obtain such a permit, a person must have a job offer from an employer in Sweden. The employer must have prepared the offer of employment and advertised the job in Sweden and the EU for at least 10 days (this applies to new recruitment). In 2024, the monthly median salary required to obtain a work permit in Sweden is SEK 28,480 (Swedish Krona). The terms of employment must be at least on par with those set by Swedish collective agreements or those customary within the occupation or industry. A work permit is valid for up to 1 year and is renewable.

The entry visa (D-visa) allows a person who has applied for an extension to their residence permit to go on a business trip outside Sweden during the processing time.

EU and EEA citizens do not require visas and may work in Sweden without work and residence permits. However, if they want to stay longer than 3 months, they must register with the Swedish Migration Board.

Population 10.6m

Population in total, including all residents regardless of legal status © 2024 - WBGEUROSTAT

89%

Urban Population

95.5%

Internet access

98.6%

Banking access

100%

Mobile phone access

DATA SOURCES

Population: The World Bank: World Development Indicators: World Bank Group • World Population Prospects, United Nations (UN), uri: https://population.un.org/wpp/, publisher: UN Population Division; Statistical databases and publications from national statistical offices, National Statistical Offices, uri: https://unstats.un.org/home/nso_sites/, publisher: National Statistical Offices; Eurostat: Demographic Statistics, Eurostat (ESTAT), uri: https://ec.europa.eu/eurostat/data/database?node_code=earn_ses_monthly, publisher: Eurostat; Population and Vital Statistics Report (various years), United Nations (UN), uri: https://unstats.un.org, publisher: UN Statistics Division

Urban Population: The World Bank: World Development Indicators: World Bank Group • World Urbanization Prospects, United Nations (UN), uri: https://population.un.org/wup/, publisher: UN Population Division

Internet access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU), uri: https://datahub.itu.int/

Banking access: The World Bank: World Development Indicators: World Bank Group • FINDEX, WBG (WB), uri: https://www.worldbank.org/en/publication/globalfindex

Mobile phone access: The World Bank: World Development Indicators: World Bank Group • World Telecommunication/ICT Indicators Database, ITU (ITU)

Social Protection & Benefits

Vacation Leave

Employees are entitled to 25 days of paid annual leave per year, starting from the first year of employment. A worker may carry over 5 days of annual leave per year for up to 5 years to take a longer holiday in a given year.

Saturdays, Sundays, and public holidays are not counted towards annual leave days unless the employee usually works on weekends and leave is shorter than five days.

Annual leave pay depends on how an employee is compensated. The same-pay rule applies with certain exceptions for employees paid weekly or monthly. The holiday supplement for weekly-paid employees is 1.82% of weekly pay. The holiday supplement for monthly-paid employees is 0.43% of monthly pay. If the employee has variable pay components, the holiday pay is 12% of the employee's aggregate variable pay that fell due during the annual leave year.

Sick Leave

Employees absent from work due to sickness are entitled to sick pay for the first 14 days of sickness except for the first day, known as the "waiting day." The employer is required by law to pay sick pay to the employees during days 2 to 14 of illness. After 2 weeks, employees can apply for sickness benefits from the Swedish Social Insurance Agency (Försäkringskassan). The maximum benefit is SEK 1,218 (Swedish krona) per day. If an employee is on sick leave for more than a year, their benefits are reduced to 75% of the income. In case of serious illness, benefits continue to be 80% of the income.

Maternity Leave

Female employees are entitled to full leave in connection with their child's birth during a continuous period of at least 7 weeks before the estimated time for delivery and seven weeks after the delivery. An employer is not under obligation to pay employees during maternity leave, in which case the Swedish Social Insurance Agency covers maternity benefits. Benefits are paid as 80% of income, up to a maximum of SEK 914 (Swedish krona) per day up to the eleventh day before the expected delivery date.

Employees can also request to start the benefits 60 days before their estimated delivery date if they cannot carry out the job and cannot be transferred to any other job. If the employer has banned an employee from continuing work due to risks in the work environment, she can receive pregnancy benefits from the day the ban applies.

Both parents may receive parental benefit payments simultaneously for 60 days for the same child within 15 months of the birth or equivalent date. Parents may also transfer certain parental leave benefits to a family member, friend, or other caretaker who is insured for the benefit.

Paternity Leave

In Sweden, the non-pregnant partner can take a temporary leave of ten working days in connection with childbirth or adoption of a child under 10 years of age. The leave is doubled for twins and tripled for three kids, and so on. This leave can be used anytime during the first 90 days after childbirth or placement. Paternity leave is paid at 80% of the income. Payments come from the Swedish Social Insurance Agency.

Employees can also reduce their working hours, claim compensation for 25%, 50%, or 75% of their regular working hours, and increase the leave duration from 10 to 20 days.

Both parents may receive parental benefit payments simultaneously for 60 days for the same child within 15 months of the birth or equivalent date. Parents may also transfer certain parental leave benefits to a family member, friend, or other caretaker who is insured for the benefit.

Social Security

Pension

According to the Social Insurance Law of Sweden, the standard retirement age is 66 years, regardless of gender. Sweden has 3 pension types available for retirees: general, supplementary, and guaranteed pension.

The general pension is an earnings-based pension model financed by contributions from employees or self-employed persons. A minimum pensionable income of 3 years is required to be eligible. The amount of the earnings-based pension is calculated by dividing the money in the employee's pension account at the time of retirement by the number of years a person of that age can be presumed to have survived. Supplementary pension is available to people born in 1953 or earlier as a part of their general pension, calculated on the price base amount applicable for the year.

The guaranteed pension depends on residence in Sweden and does not differentiate between employees and self-employed individuals. The amount of guaranteed pension is 2.13 times the price base amount for a single person and 1.90 times the base amount for a married person.

Dependents/Survivors Benefits

According to the laws of Sweden, relatives of a deceased insured person are entitled to social insurance benefits payable as a transitional pension, orphan's pension, and widow(er) pension.

A transitional pension is paid for 12 months after the death. The period can be extended for an additional 12 months if a survivor has custody of a child under 18 or continues until the youngest child attains 12 years of age. The orphan's pension ranges between 30-35%, depending on the child's age (12-18 years). If there is more than 1 orphan, the pension ranges between 20-25%. The transitional pension is 55% of the deceased's accrued pension rights.

Invalidity Benefits

Insured employees are entitled to sickness benefits for temporary disability: 80% of the insured person's lost earnings will be paid from day 15 until day 364 in a 450-day period. The period is extendable to 550 days, in which case 75% of the insured person's lost earnings will be paid. Employers pay a sickness benefit during the first 14 days (except for the first day, which is considered a "waiting period").

From July 2021, employees will not receive disability compensation at 3 levels depending on how much help they receive and how much additional costs they have. They will be eligible for Additional Cost Allowance if they fulfill certain conditions and have additional expenses due to a disability that can be presumed to last at least a year.

Additional expenses include costs beyond the costs common for people of the same age who do not have a disability and one-off expenses related to healthcare and diet, wear and cleaning, help in day-to-day life, assistive devices, and other purposes. The benefits are calculated depending on the employee's total additional expenses approved by the Social Insurance Institute.

Minimum Age

The general minimum age is 16 years and the minimum age for hazardous work is set at 18 years. Minors who have attained the age of 13 may perform light work that does not have a detrimental effect on their health, development, or education. Minors must undergo a medical examination before starting a job.

Young people under 18 can work a maximum of 8 hours per day and a maximum of 40 hours per week. During school holidays of at least 1 week, children under 16 can work a maximum of 7 hours per day and a maximum of 35 hours per week. Minors are never allowed to work between 12:00 AM and 5:00 AM. Children under 16 cannot be allowed to work between 8:00 PM and 6:00 AM. They must have at least 14 consecutive hours off from work for night rest (daily rest). A minor must have a continuous break of at least 30 minutes at the latest after 4.5 hours of work. Minors must have a rest period from work of at least 2 days during each 7-day period, not be less than 36 hours.

Unemployment 8.5%

Share of the labor force that is unemployed, but available for and seeking employment © 2024 - WBGILO

65%

Labor force population share

47.3%

Female share of labor force

85%

Healthcare access

DATA SOURCES

Unemployment: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025.

Labor force (total): The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Labor force population share: The World Bank: World Development Indicators: World Bank Group • ILO Modelled Estimates database (ILOEST), ILO (ILO), uri: https://ilostat.ilo.org/data/bulk/, publisher: ILOSTAT, type: external database, date accessed: January 07, 2025

Female share of labor force: The World Bank: World Development Indicators: World Bank Group • ILO (ILO), type: estimates based on external database; United Nations (UN), publisher: UN Population Division; Staff estimates, WBG (WB)

Healthcare access: The World Bank: World Development Indicators: World Bank Group • GHO, WHO (WHO), uri: https://www.who.int/data/gho/data/themes/topics/service-coverage

         

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