How to run payroll in Sweden

Payroll in Sweden runs on a monthly cycle. Payment is usually due by the 25th of each month, though some companies pay on the last working day.

Most Swedish employers process payroll once per month, which aligns with how most employment contracts and collective agreements are structured. There's no legal requirement for a specific pay date, but employees must receive their salary regularly and predictably.

Payment schedule overview

Payment Type	Timing	Notes
Regular salary	25th of month (or last working day)	Most common practice
Vacation pay	June (semesterlön)	Paid before summer holidays
13th month	Not applicable	Sweden doesn't have mandatory 13th month

Vacation pay system

Sweden has a unique vacation pay system called semesterlön. Instead of paying employees during vacation, employers withhold 12% of gross salary throughout the year and pay it out before the summer vacation period.

Vacation pay is typically distributed in June, allowing employees to receive extra funds during their summer holidays. This system is mandatory under the Annual Leave Act and applies to all employees who've worked for at least one year.

The calculation is straightforward: 12% of the previous year's gross salary, including overtime and bonuses. For employees in their first year, vacation pay is calculated proportionally based on months worked.

Payment methods and requirements

All salary payments in Sweden must be made via bank transfer to the employee's designated Swedish bank account. Cash payments aren't permitted for regular salaries, and check payments are extremely rare.

International companies should note that employees need a Swedish bank account (personnummer required) to receive salary payments. The payment must be in Swedish kronor (SEK), and currency conversion costs typically fall on the employer.

Bank transfers usually process within 1-2 business days, so employers should initiate payments 2-3 days before the intended pay date to ensure timely receipt.

Payslip requirements

Swedish payslips must include specific information in Swedish or English. The payslip should show gross salary, all deductions (taxes, social contributions, pension contributions), and net pay clearly.

Payslips can be delivered electronically or on paper, but electronic delivery is standard practice. If using electronic payslips, ensure employees can easily access and print them when needed for loan applications or other official purposes.

Tax withholding reports in Sweden are due by the 12th of each month. Late filing means penalties starting at kr 1,000 for small employers.

Sweden operates a progressive income tax system with both national and municipal components. Your employees will see deductions for preliminary tax (A-skatt), which covers both income tax and municipal tax combined into a single withholding rate.

Income tax brackets

Sweden's 2026 income tax combines national tax with municipal tax rates that vary by municipality. Most employees pay only municipal tax, while higher earners face additional national tax.

Annual Income (kr)	National Tax Rate	Average Total Rate*
kr 0 - 598,500	0%	32.2%
kr 598,501 - 894,700	20%	52.2%
kr 894,701+	25%	57.2%

*Includes average municipal tax of 32.2%. Municipal rates range from 29.2% to 35.2% depending on location.

Withholding requirements

You're responsible for withholding preliminary tax from every paycheck and remitting it monthly to Skatteverket (Swedish Tax Agency).

Register for employer registration (arbetsgivarregistrering) before your first payroll. This covers both tax withholding and social security contributions under one registration.

Monthly tax returns (arbetsgivaravgifter och skatteavdrag) must be filed by the 12th of the following month. For example, January payroll taxes are due February 12th.

Annual reconciliation happens through Kontrolluppgifter (control statements) due by January 31st for the previous tax year.

Tax registration

New employers need employer registration with Skatteverket before running payroll. Apply online at verksamt.se or submit form SKV 4639.

Processing takes 2-3 weeks for Swedish entities, up to 6 weeks for foreign companies establishing their first Swedish presence.

You'll need your organization number, bank details for tax payments, and estimated annual payroll amounts.

Special tax considerations

Non-resident employees from EU/EEA countries can often use their home country tax tables if they work in Sweden temporarily. This requires advance approval from Skatteverket.

Tax equalization arrangements are common for expat packages. Sweden has tax treaties with 80+ countries that may reduce withholding obligations.

SINK tax (special income tax for non-residents) applies to certain skilled workers for up to 3 years, capping tax at 25% on employment income up to kr 1,500,000 annually.

Common tax mistakes

Wrong municipal tax rates - Using Stockholm's 30.0% rate for employees working in Malmö (31.6%) creates underpayment issues.

Missing monthly deadlines triggers automatic penalties of kr 1,000 minimum, plus 1.25% monthly interest on unpaid amounts.

Incorrect non-resident treatment - Assuming all foreign employees qualify for reduced withholding without proper Skatteverket approval.

Late Kontrolluppgifter filing after January 31st results in kr 200 penalty per employee statement, capped at kr 20,000 per employer.

Think your home country has high employer taxes? Sweden's contributions total 31.42% on top of every salary.

Here's what you'll pay for every employee in 2026:

Contribution Type	Employer Rate	Employee Rate	Cap (if any)
Social Security (total)	31.42%	7%	-
- Old-age pension	10.21%	7%	-
- Survivor pension	1.17%	-	-
- Sickness insurance	3.55%	-	-
- Parental insurance	2.60%	-	-
- Work injury insurance	0.30%	-	-
- Unemployment insurance	2.64%	-	-
- General payroll tax	10.95%	-	-

Total employer cost breakdown

For a kr60,000 monthly salary, you'll pay:

• Base salary: kr60,000
• Social security contributions: kr18,852
• Total employer cost: kr78,852
• Cost multiplier: 1.31 (you pay 31% more than base salary)

Contribution caps and calculations

Sweden doesn't cap social security contributions. You'll pay the full 31.42% on every krona, whether someone earns kr30,000 or kr300,000 monthly.

The employee's 7% pension contribution gets deducted from their gross salary, but your 31.42% is calculated on their full gross amount before any deductions.

Registration requirements

You must register with the Swedish Tax Agency (Skatteverket) before paying your first employee. This covers all social security contributions - there's no separate registration for different contribution types.

Payment deadlines

All employer contributions are due by the 12th of the month following the salary payment. Pay January salaries? Contributions are due February 12th.

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The Swedish Tax Agency doesn't mess around with late payments. Set up automatic transfers or calendar reminders - the 12th comes fast when you're managing multiple countries.

Sick leave in Sweden is paid at 80% for the first day by the employer, then shifts to social insurance. Here's how Sweden's generous leave policies affect your payroll calculations.

Annual leave

Swedish employees earn 25 working days of annual leave minimum. That's five full weeks you'll need to calculate vacation pay for.

Vacation pay gets tricky because it's calculated at 12% of gross annual salary. You can't just use their current daily rate - you need their total earnings from the previous year.

Employees can carry over up to 5 days to the following year, but only until March 31st. After that, unused days expire - no payout required.

When someone leaves, you must pay out all accrued vacation time at the 12% rate. Calculate this based on their earnings during employment, not just their final salary.

Vacation pay timing

Most Swedish employers pay vacation allowance in June before summer holidays. You'll typically see a vacation supplement of 0.43% of gross salary paid monthly to cover the vacation pay obligation.

Sick leave

The first day is unpaid (waiting day), unless the employee has recurring sick periods within 5 days.

Days 2-14: You pay 80% of salary directly to the employee. This comes straight from your payroll budget.

Day 15 onwards: Social insurance (Försäkringskassan) takes over at 80% of qualifying income, up to 8.5 price base amounts (SEK 459,650 in 2026).

You'll need a medical certificate for sick leave longer than 7 days. For recurring illness, the certificate requirement drops to day 1.

Parental leave

Sweden offers 480 days of parental leave to split between parents. Your payroll involvement depends on whether employees take social insurance benefits or if you provide top-up payments.

Maternity leave: 60 days reserved for the mother at 80% of qualifying income (up to SEK 1,259 daily in 2026).

Paternity leave: 90 days reserved for the partner at the same rate.

Shared leave: Remaining 330 days can be split between parents.

Most employers don't pay during parental leave - parents receive benefits directly from social insurance. However, many collective agreements require employer top-ups to 90% of salary for certain periods.

Public holidays 2026

Date	Holiday	Notes
January 1	New Year's Day
January 6	Epiphany
April 17	Good Friday
April 20	Easter Monday
May 1	Labour Day
May 28	Ascension Day
June 6	National Day
June 19	Midsummer Eve
June 20	Midsummer Day
November 1	All Saints' Day
December 25	Christmas Day
December 26	Boxing Day

Work on public holidays requires double pay or compensatory time off. Most collective agreements specify the exact premium rates.

Mandatory benefits affecting payroll

Occupational pension contributions are mandatory under most collective agreements. Typical rates are 4.5% of salary for employees under 28, increasing to 30% for those over 55.

You'll also handle union dues through payroll deduction if employees authorize it. Rates vary by union but typically run 1-2% of gross salary.

Group life insurance is standard - most employers provide 6-8 times annual salary coverage through collective agreements. This doesn't require payroll deductions but affects your benefit costs.

Wellness allowance of up to SEK 5,000 annually is tax-free if you provide it. Many employers include this as a standard benefit that requires tracking through payroll systems.

Miss the 12th monthly filing deadline in Sweden and penalties start at kr500 per day.

Sweden's compliance requirements center around the Swedish Tax Agency (Skatteverket), which oversees all payroll reporting. They've streamlined digital filing for 2026, but the deadlines remain strict and penalties add up quickly.

Monthly filing requirements

You'll submit your Kontrolluppgift (control statement) through Skatteverket's digital portal by the 12th of each month following the pay period. This report includes all employee wages, tax withholdings, and social contributions.

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The system accepts submissions 24/7, but technical issues don't excuse late filing. Submit at least two days early to avoid last-minute problems.

Late filing triggers automatic penalties starting at kr500 per day, capped at kr50,000 per month. For companies with over 50 employees, penalties double after the first week.

Submission process

Log into Skatteverket's Inkomstdeklaration 2 portal using your company's organizational number. The system validates data in real-time and confirms receipt immediately.

Required monthly data includes:

• Gross wages per employee
• Preliminary tax withheld
• Social security contributions
• Benefit-in-kind values
• Expense reimbursements over kr1,000

Annual reporting

Year-end reconciliation happens through the Årlig kontrolluppgift system, due January 31st, 2027 for 2026 tax year data.

You must provide employees with their Kontrolluppgift för arbetstagare (employee tax certificate) by January 31st. This document shows total annual income, taxes withheld, and social contributions.

The annual filing reconciles monthly submissions with actual payments. Discrepancies trigger automatic reviews, so accuracy matters more than speed.

Audit requirements

Skatteverket audits approximately 15% of employers annually, focusing on companies with payroll discrepancies or late filings. They request three years of payroll records and conduct most reviews digitally.

Employee documentation

Employment contracts must be written in Swedish or include certified Swedish translations. Verbal agreements aren't legally sufficient for payroll compliance.

Payslip requirements

Monthly payslips must include specific elements in Swedish. Missing any required element triggers kr2,500 penalties per occurrence during audits.

Required payslip information:

• Employee's full name and personal number
• Pay period dates
• Gross salary breakdown by component
• All deductions with explanations
• Net pay amount
• Cumulative year-to-date figures
• Employer's organizational number

Record retention

Maintain all payroll records for seven years from the end of the calendar year. This includes contracts, payslips, time records, and correspondence with Skatteverket.

Store records in Sweden or ensure immediate access during audits. Digital storage is acceptable if you can produce paper copies within 24 hours of request.

Penalties and violations

Violation	Penalty	Notes
Late monthly filing	kr500-1,000 per day	Doubles for 50+ employees
Missing payslip elements	kr2,500 per occurrence	Multiplied by affected employees
Incorrect tax withholding	20% of underpayment	Plus 8.5% annual interest
Social contribution errors	40% of underpayment	Most expensive violation
Missing employment contracts	kr10,000 per employee	One-time penalty per audit
Inadequate record keeping	kr25,000 base penalty	Plus kr5,000 per missing year

Interest on unpaid amounts compounds monthly at 8.5% annually for 2026. This rate adjusts quarterly based on Swedish central bank rates.

Regulatory oversight

Skatteverket (Swedish Tax Agency) handles all payroll compliance oversight. They operate separate divisions for different company sizes and industries.

Contact information:

• Main helpline: 0771-567 567
• Business support: 020-567 000
• Digital portal: skatteverket.se/foretag
• Emergency contact: Available 24/7 for system issues

Arbetsmiljöverket (Swedish Work Environment Authority) oversees working time compliance, which affects payroll calculations for overtime and rest periods.

For companies with collective agreements, Medlingsinstitutet provides guidance on salary requirements that impact payroll compliance.

Register your payroll system with Skatteverket before processing first payments. The registration process takes 3-5 business days and requires your organizational number and designated payroll contact information.

Effective January 1, 2026, all employers in Sweden must apply new social security contribution rates that increased by 0.3 percentage points across most categories.

Social security contribution changes

Employer social security contributions - Effective January 1, 2026

• Total rate increased from 31.42% to 31.72%
• Pension contribution rose from 10.21% to 10.36%
• Health insurance contribution increased from 4.35% to 4.50%

The changes add approximately SEK 180 per month for an employee earning SEK 60,000 annually. Update your payroll calculations immediately if you haven't already.

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Tax bracket adjustments

Income tax thresholds - Effective January 1, 2026

• Basic allowance increased from SEK 24,800 to SEK 25,600
• State tax threshold raised from SEK 598,500 to SEK 618,700
• Municipal tax rates remain unchanged at approximately 32.3% average

These changes reduce tax liability by roughly SEK 260 annually for most employees. Your withholding calculations should automatically reflect these updates.

Parental leave benefit changes

Enhanced parental leave compensation - Effective July 1, 2026

• Maximum daily benefit increases from SEK 1,330 to SEK 1,380
• Minimum benefit rises from SEK 225 to SEK 240
• 90-day reserved period for each parent remains unchanged

Employees earning above SEK 507,000 annually will see the most significant benefit increase.

Upcoming changes

Digital payslip mandate - Effective January 1, 2027

• All employers must provide payslips electronically unless employee specifically requests paper
• New data security requirements for payroll systems
• Six-month preparation period recommended