Sweden has the most progressive economy for a highly developed export-oriented economy, contributed by timber, iron ore, and hydropower. They hold the 8th rank out of 45 in Europe for economic growth. The country followed a global pattern for the development of its economic statistics.
Stockholm, Gothenburg, Malmö
Construction, Engineering, Healthcare Specialists, IT Specialists
All resident individuals of Sweden are taxed on their worldwide income, while non-resident individuals are taxed on their Swedish-sourced income.
Income tax slabs for Swedish residents are —
Non-resident individuals with a permanent establishment are taxed at 25% on their worldwide income.
The Swedish government has an exception for employees who work in Sweden and don't meet the requirements of being there more than thirty days per calendar year.
Employers must deduct relevant income taxes as a part of the payroll process
Swedish social security provides an excellent benefit package to Swedish residents and non-residents.
Swedish social security contributions are compulsory for employees and employers in Sweden.
Statutory benefits are all mandatory benefits employers must offer their employees residing in Sweden. The statutory benefits include —
Employers must ensure they deduct necessary social security contributions from an employee’s paycheck as a part of their payroll process. The Swedish laws make social security contributions mandatory.
An employer must offer all leaves laid down by the Swedish employment legislation with necessary compensation.
The standard working hours in Sweden are forty hours a day, spanning over five days a week.
The law requires employers to pay their employees for working additional hours or on public holidays, even if it is not specified in the contract. Collective bargaining agreements may also mandate this type of compensation, so make sure you're aware before hand.
The maximum amount of overtime an employee can work in Sweden is 200 hours per year (over four months). However, employees who hold a managerial role do not receive any pay for extra shifts.
Certain employee benefits are exempt from taxation in Sweden, which includes
Expenses incurred when employed as per the employment agreement are exempt,
which include
Commuting expenses paid by the employer based on public transportation or a company vehicle/private vehicle
Social security contributions (applicable toward EU/EEA only)
Pension contributions
Interest expenses
Long-term incentives are a great way to keep your valuable employees happy and motivated. They can include stock options for key executives or senior staff, which gives them even more reason not only work with you but also recommend others on the team who might be interested.
However, certain long-term incentives are commonly offered to other employees of the organization, especially in Sweden —
A notice may or may not be given when terminating an employee in Sweden. However, employers must have a clear and justifiable basis for making the decision.
The Notice Period in Sweden will be up to 6 months.
There are no provisions regarding severance pay in Sweden. However, employees may receive severance pay if it is indicated in their employment agreement with their employers upon onboarding.
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