Hiring in Sweden is a great option for businesses seeking expansion. Strong public finances, political stability, a sound banking system, and a well-performing economy in the country create a favorable business environment. 

Before you hire in Sweden, you must be well conversant with the local labor and employment laws, social contributions, and taxation system in the country. Seeking the services of a workforce management platform can help to navigate local laws, handle payroll, and manage compliance in the country on your behalf. 

Hire employees in Sweden by partnering with Payoneer Workforce Management. Along with streamlining the hiring process in Sweden, they offer guidance to help navigate compliance as per local laws. 

How to hire employees in Sweden

Global or foreign companies, like American companies hiring in Sweden, have many options to choose from. Let us discuss them in detail:

1. Setting up a legal entity in Sweden

• By setting up an infrastructure and legal entity in Sweden, the business organisation will have complete control over the employees. 
• To set up the entity, you have to choose a business structure in the country.
• You have to then register with the Swedish Companies Registration Office (Bolagsverket) and the Swedish Tax Agency (Skatteverket). 
• Since the process involves a significant amount of documentation and formal paperwork, it is both time-consuming and expensive. 
• As a company, you must provide employee benefits such as health insurance, a pension, and many other benefits.
  

2. Hiring independent contractors in Sweden

• If you are looking for a quick and flexible option for hiring an employee in Sweden, you can always hire independent contractors in the country. 
• Contractors are responsible for completing a project/assignment within a stipulated timeframe. 
• The remuneration is made project/assignment-wise.
• The business organisation has no other liabilities towards the independent contractors.
  

3. Using a workforce management platform

• Typically, businesses may opt for an Employer of Record (EOR), as it legally hires and manages employees on behalf of a company/employer. However, this model may not be applicable in Sweden, so companies may use a workforce management platform.
• For instance, Payoneer Workforce Management helps handle employment contracts, payroll, and taxation, and supports compliance with employment and local laws and regulations.
  

Payoneer Workforce Management helps streamline hiring in Sweden while allowing you to focus on core business operations.

Where to find employees in Sweden

How to hire in Sweden? Sweden has an extensive talent pool. However, it is important to select the right resources so that you get the best professional for a particular job profile. 

There are online job portals as well as recruitment agencies in Sweden, where you will get potential job candidates for various job profiles. 

1. Popular job portals/boards in Sweden

There are many job portals and job boards in Sweden where employers can look for prospective employees and vice versa. 

• Swedish Public Employment Service (Arbetsförmedlingen)
• Blocketjobb
• CareerBuilder
• Ingenjörsjobb
• Jobbsafari

Apart from the above-mentioned names, job portals like LinkedIn, Monster, and Indeed remain a coveted choice for professionals. 

2. Local recruitment agencies

• Apart from online job portals and job boards, you can also hire an employee in Sweden via a local recruitment agency.  
• While some agencies offer recruitment in specific sectors, such as IT, engineering, and healthcare, others offer employment in various sectors. 
• The primary objective of these agencies is to establish a connection between businesses and talent. 
• Local recruitment agencies are well-versed with the local network and tap candidates who are not much online-savvy.
  

3. Recruitment with the support of a workforce management platform

• U.S companies looking to hire in Sweden may seek services from a unified platform, like Payoneer Workforce Management, for simplifying the recruitment process. 
• While you lead your search for the right talent locally, we can assist with quick onboarding, setting up payroll, taxation, and related paperwork. 

Onboarding employees in Sweden

With a well-implemented onboarding process, businesses can integrate their new employees into the existing talent pool. New employees in Sweden also have a positive experience when joining the new workplace. 

There are many key steps in onboarding new employees to a company in Sweden. Here are some important details:

• Employment contract: Valid employment contracts in Sweden can be written or verbal. However, there are certain elements that the employment contract must include, such as the names of the employer and employee, job description, contract period, working hours, leaves, overtime, termination, and so on. 

• Registration: The employer is responsible for registering the new employee with the Swedish Tax Agency and other relevant social security systems. 

• Payroll setup: It is vital that the payroll setup of the employee is done immaculately. This is important for taxation, social security contributions, and pension payments. 

• Explaining role expectations and company culture to employees: In the onboarding process, HR must explain what the company wants from the employee. It is also important to explain the company’s mission, vision, values, and culture to the new employee. 

• Introduction and networking: During onboarding, new employees are introduced to team members and colleagues. This helps in connecting and networking later. 

• Training and orientation: Training and orientation are integral to employee onboarding. Through the process, employees understand their jobs, resources, and tools. 

• Reviewing contracts and policies: It is highly recommended to review the contract and company policies with the new employees during the onboarding process. The employees must have access to the necessary resources and work tools. 

Key employment laws and requirements in Sweden

When you hire in Sweden, you must have a clear and thorough knowledge of the key employment laws and requirements in the country. Mentioned below are some important pointers that you must keep in consideration while hiring an employee in Sweden. 

Employment contracts

In Sweden, employment contracts are in writing as well as verbal format. However, even for verbal contracts, certain clauses and points must be mentioned in writing. Here are the points that an employment contract in Sweden generally has:

• Employee and employer name with complete details
• Period of the employment contract
• Description of the job profile
• Working hours in the company
• Compensation details, including salary, overtime, accommodation, food, etc. 
• Leaves, including annual leave, sick leave, parental leave, etc. 
• Notice of termination
• Insurance
• Disputes
• Liability and damages

Employee benefits

In Sweden, there are mandatory employee benefits as well as common supplementary benefits. Let us take a look at them:

Mandatory employee benefits

Benefits	Details
Annual leave	An employee gets 25 days of annual leave in every annual leave year in Sweden.
Sick leave	In Sweden, an employee gets sick leave for a maximum of 14 days, for which the employer pays the employee in full.  If the illness persists beyond 14 days, the employee has to apply to the Försäkringskassan for sickness benefit.
Public holidays	There are 13 public holidays in Sweden.
Parental leave	Employees are entitled to 480 days of parental leave in Sweden for one child. Each parent is paid for 240 days.  Maternity leave is a part of parental leave in the country.
Pension	The majority of people who have worked in Sweden get an occupational pension from their employers.  The Swedish Pensions Agency (Pensionsmyndigheten) is responsible for the national retirement pension in the country.  For self-employed people, there is no pension in Sweden.
Occupational Healthcare	Employers must provide access to occupational healthcare services in Sweden and ensure a safe workplace for employees.

Supplementary employee benefits

Supplementary employee benefits are company-specific. Many organisations offer benefits such as health insurance, meal allowances, life and disability insurance, additional leave, car benefits, and wellness benefits to their employees. 

Working hours and holidays

Employees in Sweden have regular working hours of 40 hours per week for a maximum of 4 weeks. Monday is the first day of the week, unless otherwise mentioned in the employment contract. 

There are also overtime laws in Sweden, governed by the Working Hours Act (2011:740). For every employee, the overtime can be a maximum of 48 hours over 4 weeks, 50 hours in a month, or a maximum of 200 hours in a year.

There is also a probation period of 6 months for employees in Sweden. 

Employer’s tax obligations

Employers in Sweden must pay employers’ contributions. The employer contribution rate usually ranges from 29% to 36%.

Termination and severance

The Employment Protection Act (1982:80) covers employment termination in Sweden. An employer in Sweden gives notice of termination to an employee in writing and must do so based on objective grounds, including lack of work and situations directly related to the employee. 

1 month is the minimum notice period for the employer and the employee. However, the time varies depending on the period of employment. 

Notice period	Period of employment
2 months	Minimum 2 years but less than 4 years
3 months	Minimum 4 years but less than 6 years
4 months	Minimum 6 years but less than 8 years
5 months	Minimum 8 years but less than 10 years
6 months	Minimum 10 years

In Sweden, severance pay is not mandated by the country’s law. However, such pays are often included in collective agreements or employment contracts.

Hire in Sweden with Payoneer Workforce Management

When it comes to hiring in Sweden, seeking services from Payoneer Workforce Management helps simplify things for you. You can hire employees in Sweden as we help you onboard local talent in compliance with local laws, without setting up a local entity. 

Payoneer Workforce Management not only handles the hiring process in Sweden but also helps you navigate compliance with local employment laws in 160+ countries, and facilitates payroll in 70 currencies. 

Book a demo today.

FAQs

1) Is it possible to hire employees in Sweden without a legal entity?

Yes, it is possible to hire workers in Sweden without establishing a legal entity in the country. This can be best done by partnering with the support of a workforce management platform like Payoneer Workforce Management. 

2) What is the annual leave entitlement for employees in Sweden?

The annual leave entitlement for employees in Sweden is 25 days.

3) Are female employees entitled to maternity leave in Sweden?

There is no separate maternity leave for female employees in Sweden. This leave is included in the 480 days of parental leave in the country. Each partner is paid for 240 days.