Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
SEK kr (Swedish Krona)
Employer contributions
31.42% (arbetsgivaravgifter)
Minimum wage
No statutory minimum (set by sector CBA)
Payment frequency
Monthly
Calendar year (Jan 1 to Dec 31)
Capital
Stockholm
Timezone
CET (GMT+1)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~65,710 SEK total
/month
For a gross salary of
50,000 SEK gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
31.42% (arbetsgivaravgifter)
Mandatory extras
Semesterersättning (Holiday Pay)
Monthly admin
Month-end payroll → Arbetsgivardeklaration by 12th → Skatteverket pays out pension to ITP
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~65,710 SEK total
Example gross salary
50,000 SEK gross/month
~31,500 SEK net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~15,710 SEK employer tax
Employer contributions on that salary
Employer contributions
31.42% (arbetsgivaravgifter)
Employee contributions
~32% combined income tax (municipal + state)
Total cost above gross
~31.42% employer tax above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~51,667 SEK
Per month
Stockholm
55,000 - 75,000 SEK
~20%
Gothenburg
45,000 - 65,000 SEK
~10%
Monthly gross. National average salary per year:
~620,000 SEK
Minimum wage
No statutory minimum (set by sector CBA)
Paid:
Set by sector agreements
Extra pay
Semesterersättning (Holiday Pay)
12% of annual salary (paid out or accrued)
June/July or ongoing
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
0 - 20% municipal + 20% state (above ~613,900 SEK)
Tax year:
Calendar year (Jan 1 to Dec 31)
Filing calendar
Monthly by 12th
Social security payments
May 2 (income declaration)
Income tax
January 31
Employee tax certificate
Kontrolluppgift (KU)
May 2
Annual return
Inkomstdeklaration
Late payment penalties
Interest + surcharges from Skatteverket for late tax; Försäkringskassan penalties for SS
Who collects what
Skatteverket
Tax collection and payroll tax
Försäkringskassan
Social insurance (sick pay, parental leave)
Arbetsmiljöverket
Work environment and labor law
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Semester
25 days mandatory
Public holidays
13 public holidays (varies by region)
Sick leave
Sjukpenning
80% from Försäkringskassan (after 1 qualifying day at employer expense)
Maternity leave
14 weeks (Föräldraledighet up to 480 days shared)
80% of qualifying income via Försäkringskassan
The contracts you can use, and what ending an employment relationship costs.
Permanent
Tillsvidareanställning
Fixed term
Visstidsanställning (ALVA 2025)
Independent contractor
Egenanställd / Konsult
Collective agreements
Kollektivavtal
Ending employment
Avgångsvederlag / Turordningsregler
How it is calculated
Negotiated, based on seniority rules (LAS)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
LAS Violations (Employment Protection Act)
Risk Level: HIGH
Sweden's Lag om anställningsskydd (LAS) strictly regulates dismissals and requires seniority-based layoff order (turordning). Violations, particularly dismissing long-tenured employees before newly hired ones, trigger labor court claims with damages up to 32 months' salary. The 2022 reform (ALVA 2025) tightened probationary rules.
Incorrect Arbetsgivaravgifter (Payroll Tax) Classification
Risk Level: MEDIUM
Sweden's payroll tax rate varies by employee age: reduced rates apply for workers under 23 and over 65. Applying the standard 31.42% rate to these groups leads to overpayment, while reversing it creates underpayment and Skatteverket penalties.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.