Cost to Hire an Employee in Sweden (2026)

• Gross salary, usually paid monthly.
• Employer costs of about 32.3% at a SEK 600,000 salary: SEK 193,895 a year, of which the largest is employer contributions (arbetsgivaravgifter).
• An EOR fee, if you hire without your own entity. The providers in our Sweden guide publish starting prices of US$199–699 per employee per month.

Mandatory employer costs at a SEK 600,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.

Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.

• Employer contributions: 31.42% of gross pay and benefits, no ceiling (2026)
• Paid annual leave: 25 days a year
• Sick pay: 80% from the employer for days 1–14, less a waiting deduction
• Ordinary working week: Up to 40 hours
• Minimum wage: No statutory minimum; set by collective agreements
• Employer notice: 1 to 6 months, by length of service

• Occupational pension (collective agreement) (4.5% of gross): Not required by statute, but set by collective agreements for most employees and expected by candidates. 4.5% of salary is an estimate for a salaried employee on a lower salary band; agreements typically pay much more on salary above a threshold. Ask your EOR for its plan's rates.
• Employer contributions are 31.42% for employees born in 1959 or later. For pay issued from 1 April 2026 to 30 September 2027, employees aged 19 to 23 (born 2003–2007 in 2026) carry a reduced 20.81% on pay up to SEK 25,000 a month. From 2026, only the 10.21% old-age pension contribution applies to employees who were 67 or older at the start of the year.
• The occupational pension is the main cost not set by law. Where a collective agreement applies it is required, and candidates generally expect one; include it when comparing offers.
• Sick pay is 80% of pay for the first 14 days of an illness, paid by the employer, less a waiting deduction of 20% of a week's sick pay. It is a contingent cost, not included above.
• Income tax (preliminary tax) is deducted from the employee's pay and is not an employer cost.

Without your own entity in Sweden, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own Swedish aktiebolag (AB). See the comparison in our Sweden guide and EOR vs local entity.