The employer pays social security tax, which for 2017 is 31,42% of the employee’s gross salary.
If a foreign-based company doesn’t have a permanent establishment, the social security tax is for 2017 is 20,7%.
It is also common for employers to pay contributions to employee pension schemes. The special pension tax is for 2017 is 24,26%.
Generally, a work permit is needed for non-EU/EEA or Swiss citizens. Work permits must usually be obtained before going to Sweden.
The process to acquire a work permit can take very long time. Currently the Swedish Migration Agency have a very strict ruling when companies apply for extensions of work permits. It is very important to get expert help from the start, for example underpaying the employee’s pension by as little as 50$ per year could jeopardise an application for the extension of a work permit. Even if the employer then pays the correct pension, the employee could still be denied an extended work permit.
When an employer posts workers to Sweden for more than five days, the employer shall report postings and specify a contact person to be registered in Sweden. The register is maintained by the Swedish Work Environment Authority. When posting workers to Sweden, the employer is required to comply with the Annual Leave Act, the Work Environment
Act, the Working Hours Act and the Discrimination Act. The salary for the workers must at least be as much as the lowest salary in the relevant collective agreement.
Employers must pay sick leave for the first two weeks of each period of sick leave taken, although the first day goes unpaid. The sick pay should be approximately 80% of the salary.
After the first two weeks, The Swedish National Social Insurance Office is responsible for payment to the employee.
Swedish income tax is payable by all Swedish residents on their worldwide income.
Tax treaties on double taxation may have an effect and each relevant tax treaty must be consulted.
All Swedish residents pay a municipal income tax on their whole salary. The municipal tax varies between 29-35% depending on where in Sweden you live.
If the yearly salary exceeds 438 900 SEK (2017) you pay 20% extra national income tax. If the yearly salary exceeds 638 500 SEK (2017) you pay 5% (total 25%) extra national income tax.
Parents are entitled to 480 days paid leave.
Each parent receives 90 days and the other 300 days can be shared between them freely and used at any time.
The minimum paid annual vacation is
25 days in addition to bank holidays (roughly ten working days per year).