Employee Cost Calculator - Sweden [2025]

Using the Employee Cost Calculator for Sweden is quick and easy. Follow these steps to get an accurate breakdown of employment costs:

1. Select Payment Frequency – Choose between Monthly or Annual payment cycles to match your payroll schedule.
2. Enter Gross Salary – Input the employee’s gross salary based on the chosen payment frequency.
3. Enter Your Details – Provide your Name, Phone Number, and Email Address to receive a personalized report.
4. Calculate – Click “Calculate” to generate a detailed cost breakdown, including: 
   • Monthly Gross Salary
   • Social Security Contributions
   • Health Insurance
   • Parental Insurance
   • Retirement Pension
   • Survivor Pension
   • Labour Market Fees
   • Occupational Injury Fee
   • General Payroll Tax
   • Total Monthly Cost to Company (CTC)

Note: You can calculate the cost to hire an employee in Sweden monthly or annually in real-time by selecting an option or adjusting the value. The calculator will instantly display the updated amount.

Overview

Are you hiring in Sweden? Like in every country, Sweden has additional employment costs beyond the employee’s gross salary. These expenses include employer social security contributions, special payroll taxes, and mandatory insurance. Here’s a detailed breakdown of the employer’s liability in Sweden for 2025:

• Social Security Contributions – 31.42% of the gross salary.
• Parental Insurance – 2% of the gross salary.
• Retirement Pension – 15% of the gross salary.
• Occupational Injury Fee – 0.33% of the gross salary.
• Special Payroll Tax on Pensions – 24.26% on the pension portion of the salary.
• Holiday Pay – Typically 12% of the employee’s gross annual salary.

Total Employer Liability: Employers contribute an additional +35.42% of the employee’s gross salary, making the total cost to the company around 40,626 SEK for a monthly salary of 30,000 SEK.

Besides direct employment costs, employers in Sweden may need to cover:

• Paid Sick Leave – Employers must cover up to 80% of the salary for the first 14 days of sick leave.
• Overtime and Public Holiday Pay – Rates may vary based on collective agreements and job types.

Additional cost of operating business

• Office-Related Expenses – Costs for office space, equipment, and operational expenses.
• Employee Training and Development – Investment in upskilling and professional development. (approximately 1% to 4% of total payroll)
• Collective Agreements – If applicable, collective agreements can increase costs through additional benefits like higher overtime rates, extended leave, and specific working conditions.

Employers in Sweden are obligated to pay social security contributions, known as “arbetsgivaravgifter,” which are calculated as a percentage of the employee’s gross salary. As of 2025, the standard rate is 31.42%. Here’s a detailed breakdown:

Establishing a legal entity in Sweden involves working with the Swedish Companies Registration Office (Bolagsverket) and navigating complex local tax and labour laws. While this option is suitable for companies planning a long-term presence, it comes with significant costs and administrative burdens.

While partnering with an EOR like PamGro allows you to hire in Sweden without the complexities of setting up a local entity. PamGro manages payroll, compliance, employee benefits, and taxes, allowing you to focus on growing your business.

Cost Comparison: Setting Up an Entity vs. Using PamGro’s EOR

Expanding your business into the Czech Republic is seamless with Employer of Record (EOR) services. An EOR solution enables you to hire and manage employees without establishing a legal entity, saving you time and resources. With PamGro, you can streamline compliance, payroll, and administrative tasks while focusing on growth.

Below are the general terms of our EOR services:

With PamGro’s local compliance expertise, we ensure full adherence to Czech labor laws while providing seamless employee management.

Ready to expand in Czech Republic? Partner with PamGro today and join over 100 companies that have simplified global expansion with our services.