How is payroll managed in Sweden?

In Sweden, it is customary for employers to pay salaries on the 25th of each month. While there is no official minimum wage, employment rights are largely governed by collective bargaining agreements through trade unions, making accurate payroll processing critical.

The country has a social insurance system, managed by Försäkringskassan, a government agency that oversees this system. They determine eligibility and the amount of social insurance payments according to state rules and regulations.

What are the standard employment regulations?

Sweden follows a vacation accrual system for paid time off. Employees earn 25 days of paid vacation after one year of work, which can be accumulated for up to 5 years. Full-time employment is generally 40 hours per week, with overtime limited to 50 hours per month and a yearly cap of 200 hours.

What should be considered when dismissing an employee?

Before terminating an employment contract, Swedish employers must first attempt to reassign the employee within the company. A valid reason is required for dismissal. In companies with more than five employees, the employer must inform the employment service of any dismissals. Additionally, negotiations with trade unions may be necessary.