Employee Cost Calculator - Sweden [2025]

Our Employee cost calculator Sweden simplifies the complexities of hiring in Sweden. Whether you’re hiring full-time employees or contractors, this tool gives you a detailed breakdown of employment costs, including social security contributions, mandatory insurance, and taxes – all in real time.

How to Use the Cost-to-Hire Calculator: Step by Step

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 FrequencyChoose 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 of Employment Costs in Sweden (2025)

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:

Cost TypeAmount (SEK)Percentage of Gross Salary
Gross Salary30,000
Social Security Contributions9,42631.42%
Parental Insurance6002%
Retirement Pension4,50015%
Occupational Injury Fee1000.33%
Special Payroll Tax on Pensions1,08924.26% (on pension)
Holiday Pay3,60012%
Total Employer Liability40,626+35.42%

 

Breakdown of Employer Costs in Sweden

  • Social Security Contributions31.42% of the gross salary.
  • Parental Insurance2% of the gross salary.
  • Retirement Pension15% of the gross salary.
  • Occupational Injury Fee0.33% of the gross salary.
  • Special Payroll Tax on Pensions24.26% 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.

Additional Costs to Consider:

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.

Employer Taxation in Sweden

Tax TypeDetails
Tax Year-EndDecember 31
Value Added Tax (VAT)Standard rate of 25%
Payroll TaxNo specific payroll tax; however, employers are required to pay social security contributions totalling 31.42% of the employee’s gross salary and taxable benefits. 
Corporate TaxA flat rate of 20.6% on taxable income

Breakdown of Social Security Contributions

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:

Contribution TypePercentage of Gross SalaryDescription
Health Insurance3.55%Covers costs related to healthcare services. 
Parental Insurance2.60%Funds parental leave benefits. 
Retirement Pension10.21%Allocated for the national retirement pension system. 
Survivor’s Pension0.60%Supports benefits for surviving family members. 
Labour Market Fee2.64%Finances unemployment benefits and related services. 
Occupational Injury0.20%Covers insurance for work-related injuries. 
General Payroll Tax11.62%A general tax is applied to payroll expenses. 
Total31.42%

 

 

How to Hire Employees in Sweden Without Hassles?

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

FactorSetting Up an EntityUsing PamGro’s EOR
Initial Setup Cost50,000 SEK (share capital) + 30,000–50,000 SEK (legal fees)2600 SEK
Monthly Administrative Cost10,000–20,000 SEKIncluded in service fee
Employer Contributions31.42% of gross salary31.42% of gross salary
Time to Hire8–12 weeks7 days
Compliance and Payroll HandlingManaged internallyFully handled by PamGro
Ongoing HR and Legal CostsSignificant0 SEK (handled by PamGro)

Employer of Record (EOR) Services in the Czech Republic

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:

General TermsDetails
Total Employer LiabilityApproximately up to 33.8% of the employee’s gross salary, covering social security contributions, health insurance, and other statutory obligations.
Minimum Service Duration3 months
Currency AcceptedCzech Koruna (CZK)
Required DocumentsFor Czech Citizens: 

  • Identification Proof, 
  • Residential Address, 
  • CV, 
  • Bank Details, and 
  • Education Certificates
For Expatriates: 

  • Job Details, 
  • Qualifications, 
  • CV, 
  • Passport, 
  • Identification Proof, 
  • Bank Details, 
  • Photographs, and 
  • Valid work permit

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.

Discover the essential facts every employer and employee should know and avoid costly mistakes.

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The Hidden Cost in Your Sweden Hiring Budget—Is It Cause for Concern?

Use PamGro's employee cost calculator to make smart hiring choices and discover the real cost of global employment, including taxes and benefits.

Employee Cost Calculator: Frequently Asked Questions (FAQs)

01
What are the employer social security contributions in Sweden?

Ans: Employers in Sweden contribute approximately 31.42% of the employee’s gross salary towards

  • Health Insurance – 4.88%
  • Parental Insurance – 2%
  • Retirement Pension – 15%
02
How is holiday pay calculated for employees in Sweden?

Ans: Yes, employers must provide health insurance, parental insurance, and occupational injury insurance.

03
Is there mandatory insurance for employers in Sweden?

Ans: Yes, employers must provide health insurance, parental insurance, and occupational injury insurance.

04
What is the special payroll tax on pensions in Sweden?

Ans: The special payroll tax on pensions is 24.26% on the pension portion of the salary.

05
How do collective agreements impact employment costs in Sweden?

Ans: Collective agreements can increase costs through higher overtime rates, extended paid leave, and specific working conditions.

06
Can employment costs vary based on contract type?

Ans: Yes, full-time, part-time, and temporary contracts may have different contribution rates.

07
What are collective agreements?

Ans: Collective agreements in Sweden are contracts between employers and trade unions that set terms for wages, working hours, benefits, and conditions. They often go beyond statutory requirements.

08
Are employers required to provide paid sick leave in Sweden?

Ans: Yes, employers must provide paid sick leave. The first 14 days are covered by the employer at 80% of the employee’s salary. After that, benefits are paid by the Swedish Social Insurance Agency (Försäkringskassan).

09
How long does it take to hire an employee in Sweden?

Ans: It typically takes 4–8 weeks, depending on contract type, work permits (if applicable), and background checks.

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