GLOBAL EMPLOYER OF RECORD IN 190+ countries
Employ local or international talent in Sweden without incorporating
Move on critical hires in Sweden while the business case for a permanent entity is still developing. Acumen acts as your Employer of Record, giving you the flexibility to build headcount now and take on the cost and commitment of incorporation only when it makes commercial sense.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Employer of Record in Sweden: how it works and what it gives you
An Employer of Record lets you build a team in Sweden without registering a Swedish company or running Swedish payroll yourself. Acumen International employs your people on Swedish contracts and carries the employer’s legal duties, while they work on your projects, report to your managers and pursue your goals.
Three ways to employ in Sweden
| Route | What it takes | When it fits |
|---|---|---|
| Your own Swedish AB | Registration with the Companies Registration Office, share capital of at least SEK 25,000, a board, annual accounts, and your own payroll, pension and insurance arrangements | A long-term team large enough to justify a local company |
| Registering as a foreign employer | Registration with the Swedish Tax Agency, monthly employer declarations and contributions, plus your own Swedish contracts, pension, insurance and LAS processes | Companies with in-house Swedish payroll and HR expertise |
| Employer of Record | A service agreement with Acumen International, which employs the team on Swedish terms | First hires, regional teams, project roles and the period before a Swedish AB makes sense |
What the Employer of Record model gives you
- A start that follows the candidate, not the paperwork. You can make an offer as soon as you find the right person, without waiting for a company or employer registration.
- Packages Swedish professionals recognise. Occupational pension, group insurance and holiday pay are set at collective agreement level, which is the benchmark candidates use to compare offers.
- Employer compliance carried for you. Employer contributions, monthly reporting to the Tax Agency and the rules of LAS, the Working Hours Act and the Annual Leave Act sit with Acumen International as the legal employer.
- A sponsor for talent from outside the EU. Acumen International applies for work permits and EU Blue Cards as the employer named on the application.
- Room to change course. The team can grow, shrink or move to your own AB later, with each employee’s length of service recognised.
Who does what
| Acumen International | Your company |
|---|---|
| Holds the Swedish employment contract | Selects the candidate and defines the role |
| Runs payroll, tax withholding and employer contributions | Directs the daily work, objectives and performance |
| Provides pension, insurance and holiday administration | Decides pay reviews, bonuses and equipment |
| Sponsors work permits and EU Blue Cards | Provides the business reasons behind any change to the team |
| Manages LAS processes and any union contact | Approves the cost of each hire before the offer |
The legal footing. Sweden requires no licence to employ staff who work for a client company. Under the Temporary Agency Work Act, the employee receives at least the pay and conditions they would have as your direct employee, unless a collective agreement sets its own terms. LAS governs probation, fixed-term limits, notice and dismissal, and whether a collective agreement applies is settled with you before the first hire.
Employer of Record in Sweden under Swedish employment law
Sweden places no licensing requirement on companies that employ staff to work for clients. The Temporary Agency Work Act and the Employment Protection Act (LAS) set the framework, and collective agreements fill in much of the detail:
| Requirement | What it means for your Swedish hire |
|---|---|
| No licence needed | Swedish law does not require a licence to employ staff who work for a client company |
| Equal treatment | The employee receives at least the pay and conditions that would apply if your company employed them directly, unless a collective agreement sets its own terms |
| Written terms within 7 days | The key terms of employment are given in writing within 7 days of the start date |
| Employment protection | LAS governs probation, fixed-term limits, notice and the grounds for dismissal |
| Collective agreement position | Whether an agreement applies is agreed before the first hire, as it shapes pay, pension and insurance |
The operating split: Acumen International is the legal employer, holding the Swedish contract, paying employer contributions, withholding tax and reporting pay to the Swedish Tax Agency each month, while your managers set the work and priorities.
Employment in Sweden at a glance
Last reviewed October 2026.
| Item | Sweden |
|---|---|
| Currency | Swedish krona (SEK) |
| Capital | Stockholm |
| Minimum wage | No statutory minimum; pay floors come from collective agreements |
| Salary payments | 12 a year, usually on the 25th of the month |
| Employer contributions | 31.42% of gross pay, with no ceiling |
| Employee contribution | 7% general pension contribution, offset in full by a tax reduction |
| Income tax | Municipal tax averaging 32.38%, plus 20% state tax on taxable income above SEK 643,000 (2026) |
| Working time | 40 hours a week, with overtime capped at 200 hours a year |
| Paid holiday | 25 days a year, with at least 4 weeks in a row between June and August |
| Probation | Up to 6 months |
| Employer notice | 1 to 6 months, depending on length of service |
| Parental leave | 480 days of parental benefit per child, shared between parents |
| Occupational pension | Not statutory, but standard under collective agreements and expected by candidates |
Collective agreements, unions and pay in Sweden
Sweden leaves pay to the social partners rather than to statute. Around nine in ten employees are covered by a collective agreement (kollektivavtal), which typically sets minimum pay, annual pay rises, working hours, overtime compensation, occupational pension and insurance.
An employer is bound when it joins an employer organisation or signs a standalone agreement with a union. Unions can call industrial action to secure one, including at small and foreign-owned employers, so the position is decided before the first hire.
Three other features shape Swedish employment:
- Co-determination (MBL). Employers bound by an agreement negotiate with the union before major changes, such as reorganisations or redundancies, and in some situations must do so even without an agreement.
- Annual pay review. Salaries are usually reviewed once a year in line with the industry’s pay round, so candidates ask how their pay will develop as well as what it starts at.
- Monthly salary. Professional pay is agreed and quoted as a monthly gross amount, for example SEK 58,000 a month, with pension on top.
Employment contracts, probation and working time in Sweden
- Open-ended employment (tillsvidareanställning): the default under LAS and the norm for professional roles.
- Probation (provanställning): up to 6 months, after which employment continues automatically unless either side gives notice before the end. The employer informs the employee at least 2 weeks before ending a probation.
- Fixed-term employment: allowed as special fixed-term employment, for substitutes, seasonal work and employees aged 69 or over. Special fixed-term employment converts to an open-ended contract once it exceeds 12 months within five years.
- Working time: 40 hours a week under the Working Hours Act, with at least 11 hours’ rest in every 24 and 36 hours’ rest each week. Overtime is capped at 48 hours in four weeks and 200 hours a year, and collective agreements can adjust these limits.
- Overtime pay: set by the collective agreement or contract; many senior roles trade overtime pay for extra holiday days.
- Remote work: common and agreed individually, with the employer remaining responsible for the work environment at home.
- Non-compete clauses: enforceable only where reasonable in length and scope, and agreements for many professional roles require compensation while the clause applies.
Notice periods, dismissal and severance in Sweden
Under LAS, the employer’s notice depends on the employee’s total length of service:
| Length of service | Employer notice |
|---|---|
| Under 2 years | 1 month |
| 2 to 4 years | 2 months |
| 4 to 6 years | 3 months |
| 6 to 8 years | 4 months |
| 8 to 10 years | 5 months |
| 10 years or more | 6 months |
Employees who resign give at least 1 month’s notice, or longer under a collective agreement or contract.
A dismissal needs objective grounds (sakliga skäl), which come in two forms:
- Personal reasons: conduct or performance serious enough to justify ending the employment, raised with the employee in advance and preceded by written notice to the employee and, where relevant, the union.
- Redundancy (arbetsbrist): a genuine business need to reduce staff. Employees are generally selected by length of service within each unit, but the employer can exempt up to three employees it considers essential. Those dismissed have priority for re-employment for 9 months.
Summary dismissal (avsked) is reserved for gross misconduct. An employee has 2 weeks to challenge a dismissal as invalid, and if a court agrees and the employer still refuses to continue the employment, compensation ranges from 6 to 32 months’ pay depending on length of service, on top of damages.
Sweden has no statutory severance pay. Instead, employees can draw on transition support: through funds set up under collective agreements, or through the public basic transition support and study grants open to everyone.
Employment risk mitigation in Sweden
| Risk | Where it arises | How Acumen International mitigates it |
|---|---|---|
| Worker misclassification | Contractors with F-tax registration who work like staff can be treated as employees, with employer contributions and tax due | Contractor arrangements reviewed and moved onto Swedish employment where the work is directed like a job |
| Union demands | A union can call industrial action to secure a collective agreement where none applies | The agreement position decided before hiring, with pay, pension and insurance set at agreement level |
| Equal treatment | Pay and conditions of comparable staff at your company, under the Temporary Agency Work Act | Salary, pension and hours benchmarked against your own comparable roles |
| Invalid dismissal | Missing objective grounds or a wrong selection order lead to invalidity and compensation of up to 32 months’ pay | Grounds, consultation and selection order worked through with you before notice is given |
| Fixed-term conversion | Special fixed-term employment becomes open-ended after 12 months within five years | Fixed-term contracts tracked against the conversion limit |
| Working hours and overtime | Overtime caps, rest periods and records under the Working Hours Act | Hours and overtime recorded and compensated each month |
| IP ownership | Employers can claim employee inventions but owe reasonable compensation; software passes to the employer, while other creative work depends on the contract | IP assignment for inventions, code, designs and content in both the employment contract and the service agreement |
| Pay transparency | The EU Pay Transparency Directive, coming into Swedish law alongside the annual pay survey already required under the Discrimination Act | Pay criteria documented and pay surveys run for comparable roles |
| Taxable presence | Swedish staff who habitually conclude contracts for your company can create a permanent establishment | Each role’s authority to negotiate and sign agreed with your tax adviser before the offer |
| Work permits | Permits are tied to the employer and occupation, with salary at least 90% of the median and in line with collective agreements | Pay changes, role changes and new permits planned together, before anything takes effect |
Hiring international talent in Sweden: work permits, the salary requirement and the EU Blue Card
Sweden tightened its work permit rules on 1 June 2026, replacing the old maintenance test with a salary requirement linked to the national median.
| Route | Best suited for | Key conditions (2026) |
|---|---|---|
| Work permit | Most non-EU hires | Monthly salary of at least SEK 34,470 (90% of the median), on terms in line with the collective agreement or industry practice; the job advertised in Sweden and the EU for at least 10 days |
| Work permit, exempt occupations | Listed roles such as certain IT technicians, and recent graduates or researchers in Sweden | Monthly salary of at least SEK 28,725 (75% of the median) |
| EU Blue Card | Highly qualified specialists | Salary of at least 1.25 times Sweden’s average gross salary, a contract of at least 6 months, a degree or relevant professional experience; now issued for up to 4 years |
| EU, EEA and Swiss nationals | Free movement | No permit required; registration with the Tax Agency for a personal identity number when staying a year or more |
Work permits are tied to the employer and the occupation for the first two years, and employees on permits valid for up to a year need comprehensive health insurance. Every new hire needs a personal identity or coordination number for Swedish payroll.
Cost of employing in Sweden: employer contributions and income tax
In Sweden, the employer carries most of the social cost. Employer contributions (arbetsgivaravgifter) of 31.42% apply to all pay with no ceiling, and occupational pension comes on top.
| Cost item (2026) | Employer | Employee |
|---|---|---|
| Old-age pension contribution | 10.21% | 7% general pension contribution, offset by a tax reduction |
| General payroll tax | 12.62% | None |
| Health and parental insurance | 5.55% | None |
| Labour market, survivors’ and work injury contributions | 3.04% | None |
| Occupational pension (ITP-style plans) | Typically 4.5% of salary up to the income ceiling and 30% above it | None |
| Special payroll tax on pension premiums | 24.26% of the pension contribution | None |
| Holiday supplement | 0.43% of monthly salary for each holiday day | None |
Income tax. Tax is withheld every month. Municipal tax averages 32.38%, and state income tax of 20% applies to taxable earned income above SEK 643,000 in 2026. An earned income tax credit lowers the bill for most employees.
Expert tax relief. Foreign specialists, executives and researchers who earn more than SEK 118,400 a month in 2026, and have not lived in Sweden in the previous five years, can have 25% of their pay exempted from tax and from employer contributions for up to seven years. The application goes to the Research Tax Board within three months of the start date, and the government has proposed widening the relief from 2027.
The Global Payroll Calculator adds Sweden’s 31.42% employer contributions, pension and holiday supplement to any gross salary, using Acumen International’s 1,500-plus official sources checked with local lawyers and accountants.
Where Swedish demand for specialists is growing
Sweden pairs one of Europe’s strongest technology scenes with heavy industry that is being rebuilt around fossil-free production, and since joining NATO in 2024 it has expanded its defence sector quickly.
| Sector | Roles in demand |
|---|---|
| Software, fintech and gaming, centred on Stockholm | Software, data, product and security engineers |
| Defence and aerospace, in Linköping, Karlskoga and Stockholm | Systems, embedded software and security-cleared engineers |
| Green steel, batteries and mining in the north, around Luleå and Skellefteå | Process, electrical, automation and project engineers |
| Automotive and vehicle technology, centred on Gothenburg | Vehicle software, electrification and safety engineers |
| Life sciences, around Stockholm, Uppsala and Gothenburg | Clinical, regulatory, market access and biomanufacturing specialists |
| Energy and grid expansion | Grid, wind and nuclear engineers and project managers |
Why companies hire in Sweden with Acumen International
The reasons companies bring a Swedish hire to Acumen International tend to come from the Swedish market itself:
- Your candidate expects agreement-level terms. Senior engineers in Stockholm compare offers on pension, insurance and the annual pay review as much as on salary, and the package is built to meet those expectations from the first payslip.
- You are supplying Sweden’s defence build-up. Suppliers to Swedish defence programmes place engineers and programme managers near their customers in Linköping or Stockholm while the long-term footprint is decided.
- Your project is in Norrbotten. Green steel, battery and mining projects around Luleå need specialists on site for a defined phase, employed on Swedish terms close to the project.
- You are preparing a Swedish product launch. Life-science companies hire medical, regulatory and market access specialists to work with Swedish regions and the Dental and Pharmaceutical Benefits Agency before setting up a subsidiary.
- Your non-EU candidate is close to the new salary line. Since June 2026, permits require at least 90% of the median salary, so the offer, the occupation and any exemption are checked before the contract is signed.
- A senior expert is moving to Sweden. The expert tax relief must be applied for within three months of the start date, so the salary and timing are planned before the employee arrives.
- Your contractors have become core staff. Long-term contractors with F-tax registration move onto Swedish employment with contributions, pension and insurance in place.
- Your Swedish team needs a new home. Employees can move from another Employer of Record or from a closing Swedish company with their length of service recognised.
Employee benefits, pension and payroll in Sweden
Swedish professionals judge an offer by its occupational pension and insurance as much as by salary. Collective agreements include group life, work injury, sickness and parental pay top-up insurance, and candidates expect the same cover without an agreement. Other common benefits are a tax-free wellness allowance (friskvårdsbidrag) of up to SEK 5,000 a year, private health insurance, extra holiday days, a company car for sales and senior roles and, in technology, equity. Each package is designed around the role and the candidate.
Payroll. Salaries are usually paid on the 25th of each month. Acumen International withholds preliminary tax, reports each employee’s pay to the Swedish Tax Agency in a monthly employer declaration (AGI), and pays tax and employer contributions by the 12th of the following month, or the 17th in January and August. Sick pay, holiday accrual and pension premiums are calculated in the same run.
Holiday and statutory leave in Sweden
| Leave | Entitlement | Pay |
|---|---|---|
| Paid holiday | 25 days a year, with at least 4 consecutive weeks between June and August; up to 5 days a year can be saved for later years | Employer, monthly salary plus a holiday supplement of 0.43% of monthly salary per day |
| Public holidays | 11 public holidays that can fall on weekdays, with Midsummer Eve, Christmas Eve and New Year’s Eve treated as days off in most workplaces | Employer, full monthly salary |
| Parental leave | 480 days of parental benefit per child, 90 reserved for each parent, usable until the child turns 12 | Social Insurance Agency: about 80% of pay up to a ceiling for 390 days, a flat daily rate for 90 days; often topped up under agreements |
| Leave at birth for the other parent | 10 days | Social Insurance Agency, about 80% of pay up to a ceiling |
| Care of a sick child | Up to 120 days a year for each child under 12 | Social Insurance Agency, about 80% of pay up to a ceiling |
| Sick leave | As long as the employee is unfit to work | A qualifying deduction for the first day; employer sick pay at 80% for days 2 to 14; Social Insurance Agency from day 15 |
| Care of a seriously ill relative | Up to 100 days for each person cared for | Social Insurance Agency, about 80% of pay up to a ceiling |
| Leave to start a business | Up to 6 months, after 6 months’ service | Unpaid |
Sources
- Employment Protection Act (LAS)
- Annual Leave Act
- Amounts and percentages for income year 2026
- Salary requirements for a work permit
- New EU Blue Card rules now apply
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Who manages a termination if an employee in Sweden is employed through Acumen?
Acumen, as the legal employer, manages the formal employment process in Sweden. The client provides the business reason and supporting facts, while Acumen determines the locally appropriate process, documents, notice and timing before action is taken.
Can the employment contract in Sweden protect our confidential information and IP?
Yes. Employment documentation can include confidentiality and IP provisions tailored to the role and to Sweden. The wording must follow local rules on employee-created works, inventions and assignment, so Acumen does not simply reuse one global clause everywhere.
How can an EOR help when a business is buying, selling or restructuring a team in Sweden?
An EOR can provide continuity where the future employing entity is not ready at the same time as the business transition. In Sweden, Acumen can assess an interim employment solution for affected staff while the permanent post-transaction structure is completed.