Employer of Record (EOR) in Sweden
Employer of Record (EOR) in Sweden allows businesses to hire local employees without creating a Swedish entity. With a workforce of over 5.5 million, Sweden is highly attractive for global companies seeking skilled professionals in technology, engineering, finance, and healthcare. The country is known for strong worker protections, detailed collective agreements, and high employer contributions, which can be challenging for foreign firms. Businesses choose EOR services in Sweden to simplify payroll, contracts, benefits, and compliance while maintaining speed and flexibility in hiring.
About Sweden
Sweden, located in Northern Europe, is one of the world’s most advanced economies, well-known for innovation, sustainability, and strong labor market institutions. As a member of the European Union and the Schengen Area, Sweden provides easy access to the European market, while maintaining its own currency, the Swedish Krona (SEK).
The Swedish economy is diverse and export-oriented, with major sectors including technology, automotive, pharmaceuticals, and green energy. Stockholm is recognized as a leading tech hub in Europe, producing several global companies and startups. Sweden also ranks high in quality of life, education, and English proficiency, making it a favorable location for international employers.
Labor relations in Sweden are shaped by collective bargaining agreements, which regulate wages, working conditions, and benefits. While this ensures strong protections for workers, it also creates complexities for foreign employers. EOR solutions in Sweden help businesses navigate these rules and ensure compliance while accessing a highly skilled workforce.
Employment Terms and Regulations
Types of Contracts:
Permanent, fixed-term, probationary, and project-based contracts.
Working Hours:
Standard 40 hours per week, maximum 48 hours including overtime.
Minimum Wage:
No statutory minimum wage, wages set by collective agreements.
Probation Period:
Up to 6 months.
Taxation and Contributions
Employers must pay social security contributions covering pensions, healthcare, parental benefits, and unemployment insurance. Contributions are significant and vary by agreement.
Types of Leave
Annual Leave:
Minimum 25 days per year.
Sick Leave:
Paid by employer for first 14 days (80% salary), then by social insurance.
Maternity/Paternity Leave:
Parents can share up to 480 days, paid by social insurance.
Public Holidays:
13–14 per year, depending on the calendar.
Employee Benefits
Mandatory pension contributions, healthcare coverage, parental leave benefits, and vacation pay. Many employers also provide additional insurance and wellness benefits.
Termination Process
Termination must follow employment protection laws, requiring objective reasons such as redundancy or misconduct. Notice periods vary by tenure, from 1 to 6 months.
Employer Taxes
Employer contributions in Sweden are around 31.42% of gross salary, covering pensions, social insurance, and healthcare.
EMPLOYER TAXES
31.42% (Estimated)
FAQ's
How STM Manages Employment in India
Establishing an entity in every hiring location can be cost-prohibitive. STM simplifies the process by employing and paying your Indian talent on your behalf. We handle the intricate HR procedures and employment contracts in compliance with local laws. You can conveniently approve invoices through our platform. By partnering with an Employer of Record (EOR), you can efficiently and compliantly hire top talent globally.
Payment Processes for Indian Employees
We streamline payroll management for your Indian workforce. Employee hours, leaves, holidays, bonuses, and commissions are meticulously calculated. STM invoices you around the 15th of each month in your preferred currency, including US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD). This ensures your Indian employees receive their salaries promptly in Indian Rupees (INR). Simplify further by consolidating your global team’s salaries into a single payment.
Full-time Employees vs. Global Contractors
Contractors engage with multiple companies and are self-employed, while full-time employees focus solely on their employer and receive additional benefits like health insurance, equity, and time off. While hiring international contractors can be cost-effective, it comes with misclassification risks. Partnering with an EOR for contractor onboarding and payments ensures compliant and timely compensation.
Reliable Employee Support
Our platform offers accessible support for employees and employers with inquiries about benefits, visas, and global employment in India. Utilize the chat function to connect with our expert team. Additionally, every STM client is assigned a dedicated account manager, serving as the primary contact for global HR assistance.
