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Undoubtedly, payroll is a critical process for any organization. The pay cycle in Sweden refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

Salaries are paid on a monthly basis on the 25th of each month.

13th-month payments are not legally mandatory. Employers can pay bonuses at their discretion.

There is no official national minimum wage. Minimums are determined through collective bargaining agreements through trade unions.

Overtime means when work hours exceed regular working hours and on-call hours according to the agreement or consent.

A maximum of 48 hours per employee for a period of four weeks can be worked as overtime. 50 hours during a calendar month. A maximum of 200 hours can be worked during a calendar year.

Overtime, in addition to general overtime, may be taken up to a maximum of 150 hours per employee during a calendar year if there are special reasons. Extra overtime and general overtime together may not exceed 48 hours per employee for a period of four weeks or 50 hours during a calendar month

All record retention in Sweden is governed by the Swedish Accounting Standards Board (Bokföringsnämnden, abbreviated as BFN). Employers are required to maintain account records, including all payroll taxes, business transactions, and financial statements. All accounting information must be retained for not less than seven years in any format (e.g., online, disc, hard-copy), along with income tax and social insurance contribution records.

Employers are generally free to hire whomever they please, provided that they do not discriminate on grounds stipulated in the Discrimination Act or on grounds related to parental leave. However, affirmative discrimination may be legitimate when the aim is to improve equality between the sexes.

Employees whose employment has been terminated as a consequence of redundancy shall have rights of priority for re-employment in the business in which they were previously employed, according to the Employment Protection Act. An employer who wishes to recruit within the operating unit may be obliged to offer the position to a person with a right to priority. The priority is contingent upon the employee having been employed by the employer for a total of more than 12 months during the previous three years. The right to priority applies during the notice period and thereafter until nine months from the date that the employment ceased.

• A “Personnummer” (ID number) is required before one can receive a salary
• Work Permit
• ID

The Employment Protection Act permits probationary employment for a period of no more than six months. The probationary period may not be extended at the discretion of the employer nor with the consent of the employee.

If the employment is not terminated at the expiry of the probationary period, the employment will automatically become employment for an indefinite term.

The following public holidays are observed in Sweden.

• 1 January - New Year's Day
• 6 January - Epiphany
• 18 April - Good Friday
• 20 April - Easter Sunday
• 21 April - Easter Monday
• 1 May - May Day
• 29 May - Ascension Day
• 6 June - National Day
• 8 June - Whit Sunday
• 21 June - Midsummer Day
• 1 November - All Saints' Day
• 25 December -  Christmas Day
• 26 December -  2nd Day of Christmas 

All Swedish employees are entitled to 25 paid vacation days per year. This includes a mandatory four-week block between June and August. Vacation pay is calculated as 12% of annual gross income. Unused vacation days can be carried over for up to five years. Employees starting after August 31st only get five vacation days for the current year.

Employees in Sweden are entitled to up to 90 days of paid sick leave. The first 14 days are covered by the employer, paying 80% of salary (minus a one-day deductible). After 14 days, employees can claim sickness benefits from the government, also based on 80% of salary but with income caps. A medical certificate is required after seven days of absence.

Sweden offers generous paternity leave benefits to promote equal parenting. Fathers are entitled to 90 dedicated paternity leave days, part of a total 480-day parental leave shared by both parents. This leave is partially paid and can be taken flexibly. Both parents can also take 60 days of shared leave. New reforms allow leave transfers to extended family members.

Swedish mothers are entitled to 14 weeks of paid maternity leave before childbirth. This is part of a total 480-day parental leave shared between both parents. The leave is paid at 80% of the mother's income for the first part and at a fixed rate for the remainder. Mothers must inform their employer two months before starting leave and have job protection upon return. The parental leave system is flexible, allowing for shared leave and even transferring days to grandparents.

Swedish parents can share up to 480 days of paid leave per child. This leave can be taken until the child turns 8 or finishes their first year of school. Parents receive income-based pay for 390 days and a flat rate for the remaining 90. The leave can be divided into three periods per year and shared between parents, with a maximum of 60 simultaneous days. Since July 2024, some leave can be transferred to other caregivers. To claim benefits, parents must register with the Swedish Social Insurance Agency within 90 days of starting

Bereavement leave in Sweden is flexible. Employees have the right to unpaid time off for a close relative's death, but the details, like pay and duration, depend on the company. Many employers offer up to 10 days of paid leave, especially with collective bargaining agreements. Otherwise, terms are often negotiated directly.

Swedish employees can take paid study leave. To qualify, they must have worked for the same employer for at least six months. The education must be approved and structured. Employees may be eligible for a government grant during their leave. Upon completion, they have the right to return to their job.

The law distinguishes between two main categories of reasons for termination with notice: Termination on the grounds of redundancy and termination for reasons relating to the employee. Reasons related to the employee concern only that individual and his or her circumstances. Misconduct is the most common cause of termination of this kind.

The notice periods in Sweden are outlined in the employment contract and collective bargaining agreement of the Employment Protection Act.

For employers with a collective agreement, notice periods are stipulated in the employment contract following an agreement between the employer and employee. The notice period is commonly one month.

For employees without a collective agreement, the notice period is dependent on the employee’s serenity as follows:

• Less than two years – 1 month of notice 
• Two years but less than four years -2 months of notice 
• Four years but less than six years – 3 months of notice 
• Six years but less than eight years – 4 months of notice 
• Eight years but less than ten years – 5 months of notice 
• Ten years or more – 6 months

An employer has dismissed an employee without notice due to gross misconduct. In that case, employees with a collective agreement should serve the notice period stipulated within their employment contract, commonly one month. In contrast, an employee without a collective agreement should serve a one-month notice period in accordance with the Employment Protection Act.

Companies are not required to give severance compensation, although it may be included in an employment contract.

Generally, citizens from countries outside the EU must apply for a work permit to work in Sweden. There are a few exceptions to the rule. Citizens of Australia, Canada, Hong Kong, Japan, New Zealand, and South Korea aged 18–30 can also apply for a working holiday visa for up to one year.

For employment that lasts less than three months, citizens of certain countries must have a work permit and a visa.

To qualify for a work permit, you must have received an official offer of employment from a Swedish employer. The job must also:

• have been advertised in the EU/EEA for at least ten days
• offer terms of employment that match those set by Swedish collective agreements or those that are customary within the occupation or industry
• Pay a minimum monthly salary of SEK 13,000 before taxes.
• You must also hold a valid passport in your home country.

Employers have limited possibilities of obtaining information from registers containing information regarding applicants, such as medical information and criminal records, and are limited by the EU General Data Protection Regulation as regards the processing of such personal data. Hiring a third party to do the background check does not change the limitations.

An applicant can, on the other hand, present information about themselves, if the employer should request it. An applicant is not obliged to comply with such a request, but non-compliance may result in the applicant not being offered the position in question. Further, according to the EU General Data Protection Regulation, an employer is generally never allowed to process such presented personal data regarding criminal convictions and offenses. Applicants to positions such as teachers and day-care teachers, however, may be obliged to provide an extract from their criminal records before an employment agreement is entered into.

As regards credit checks, these are allowed and may be conducted by the employer if the credit check is of relevance to the applied position. That is, the position will involve economy-related tasks such as accounting or handling payments as a cashier. Otherwise, consent should be provided by the applicant prior to a credit check.