Sweden Payroll services, simplified

How does payroll work in Sweden?

In Sweden, it is very common for employers to pay salaries on the 25th day of the month. There is no official minimum wage, but employment rights are dictated by collective bargaining agreements through trade unions. It is extremely important to ensure payroll is processed correctly as each agreement must be referred to in each instance.

Sweden has a social insurance system that provides financial security during different stages of life, the Försäkringskassan is a government agency that administers the social insurance system in Sweden. They determine who is eligible and the amount in order to issue social insurance payments according to state rules and regulations.

What are the general employment rules?

Sweden operates a vacation accrual process for paid time off. After one year of work an employee will be entitled to 25 days of paid vacation, which is accrued and held for up to 5 years. Full time employment is generally considered as 40 hours per week, but overtime cannot exceed 50 hours per month, with an annual limit of 200 hours.

What about dismissing an employee?

In any instance, an employer must try to find an employee a suitable role within the company prior to a contract termination. If this is not available, there must be a valid reason for a dismissal. For companies with more than 5 employees, the employer must notify the employment service of the dismissal. The employer may also need to negotiate with trade unions.