Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status, the number of children, and the municipality where the employee lives.

Monthly costs

• Social Security Contributions - 31.42%*
• Long-Term Disability Insurance - Average cost: SEK 485**

*Social Security Contributions cover the mandatory employer contributions towards health insurance, parental insurance, retirement and survivor's pension, labor market, worker's compensation, and general payroll tax. The estimated cost varies for employees born between 2005 and 2007, between 1938 and 1956, or in 1937 or earlier.

**The exact cost for Long-Term Disability Insurance will be determined on enrolment and varies based on the employee’s salary and age.

Annual costs

Holiday pay - 12% of the employee’s variable payments (salary, bonus, overtime compensation, etc.) during the vacation year (April to March)

Employees are entitled to 240 days of paid paternity leave. 10 additional days can be taken before or after the child's birth. The remaining days can be divided into three periods of time. Only 30 days can be at the same time as the partner.

The employee will receive 80% of their salary during the first 195 days and SEK 180 per day for the remaining 45 days. The Swedish Social Insurance Agency (Försäkringskassan) will be responsible for this pay.

In Sweden, maternity and paternity leave are considered parental leave. Therefore both parents have the same right to take leave.

Employees are entitled, a total of 480 working days of parental leave. Each parent is entitled to 240 days, and they can decide how to distribute the length up to 150 days. The Swedish Social Insurance Agency will pay the salary during this period.

Employees are entitled to paid sick leave for 90 days. This leave is paid at different rates and by other payers depending upon length:

** The sick leave exact amount will be calculated by Social Insurance when the employee submits the request on their platform and provides the information required. The maximum contribution is SEK 810 per day.

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

There is no at-will termination in Sweden. Terminations in Sweden can be done by the employer, the employee, or mutual agreement. To terminate a contract, each party has to provide the correct notice.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• By the expiration of the contract
• Unilaterally by the employer based on:
  • probation period
  • objective grounds
  • performance due to unsuitability for the job
  • misconduct
  • cooperation problems
  • refusal to work

The minimum notice period is 30 days and increases according to the length of employment:

• 30 days if employment is less than two years.
• 60 days if employment is between two and four years.
• 90 days if employment is between four and six years.
• 120 days if employment is between six and eight years.
• 150 days if employment is between eight and ten years.
• 180 days if employment is more than ten years.

Full-time employees are entitled to 25 days of paid time off (PTO) a year. PTO accrues monthly at 2.08 days per month. Employees earn vacation from April 1st to March 31st of the following year.

PTO for part-time employees will be subject to how many days they work per week. If the employee works 5 days a week, they will be entitled to 25 days. If the employee works fewer days, a pro-rata calculation will apply.

Vacation accrual is mandatory and accounts for 12% of the employee's gross salary. The employer is obligated to offer the employee four consecutive weeks from June to August.

Sweden celebrates 13 national holidays, which include:

1. New Year's Day
2. Epiphany
3. Good Friday
4. Easter Sunday
5. Easter Monday
6. Labor Day
7. Ascension Day
8. Whitsunday
9. National Day
10. Midsummer Day
11. All Saints' Day
12. Christmas Day
13. Boxing Day

Onboarding takes 2 business days after the client signs the SOW.

Each person must have a SS number and provide it before signing the agreement. If the employee has no SS number, they will need to reach the Tax Agency and request a temporary number.

Contracts are in English and can be bilingual. They must be in writing and signed by both parties.

The contract must state mandatory information such as the name of the employee, start date, length of the employment, holiday conditions, among others.

Employees hired using Deel have a probation period of 90 days, which you can extend up to 180 days. As of January 2022, it's Deel company policy to include probation periods in all employment contracts moving forward.

By law, fixed term employment agreements cannot have a probation period.

The maximum probation period for indefinite contracts is 180 days (6 months).