Hiring in Sweden

The terms set out role, salary in SEK, working time, leave, notice, any applicable collective agreement and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

English is common for commercial roles, but collective agreements are written in Swedish.

Fixed-term contracts are permitted, but they convert to permanent employment after more than 12 months in a five-year period, and most EORs default to indefinite terms.

Set probation from day one. The 6-month cap cannot be extended by individual agreement, only through a collective agreement.

Probation converts to permanent employment automatically if the notice deadline is missed. Ask the EOR how it tracks that date before you agree a start date.

Overtime is capped at 200 hours a year, and collective agreements typically pay a premium of 50% to 100% on the hourly rate.

Many professional contracts fold overtime into salary, often with extra leave days in return. Put the position in writing either way.

Market practice for professional roles is 25 to 30 days, with extra days often given in place of overtime pay, so quote the market figure when you budget. New starters may not have earned paid leave in year one, so many employers grant it in advance.

The employer pays sick pay at 80% for the first 14 days, less a qualifying deduction, and the state takes over from day 15. Parental leave of 480 days per child is state funded, but collective agreements often add an employer top-up, so confirm which side the EOR carries.

Grounds are either redundancy or personal reasons, and redeployment must be considered first. There is no statutory severance, but negotiated settlements are common and collective agreements can add transition support.

The EOR runs the process as the legal employer and will want the paperwork in order, including union consultation, selection order in redundancies, final pay and accrued holiday pay. An unlawful dismissal can be declared invalid or attract damages, so keep a documented reason.

Occupational pension, group life, private health insurance and a tax-free wellness allowance are standard for professional roles even though none of them is mandatory.

EORs often bundle benefits through a group scheme or a collective agreement. Ask what is included in the fee and what is billed on top.

Employer contributions add 31.42% on top of gross salary for most employees. That is before the EOR fee.

Pension cost is the trap. Occupational pension contributions attract a special payroll tax of 24.26%, so a 4.5% pension contribution costs closer to 5.6% of salary. Build that into the budget alongside the 31.42%.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the salary floor and insurance requirements apply to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers outside the EEA need a lawful basis, such as an adequacy decision or standard contractual clauses.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is straightforward, but the running cost is the point: SEK 25,000 share capital, director residency rules, bookkeeping, audit thresholds, monthly employer returns and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.