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Since 1523, Stockholm has held the distinction of being Sweden’s capital, spreading over a network of 14 islands. It stands as the largest and most populous city in the nation.
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Sweden is known for high quality of life and it’s well-educated and highly skilled workforce. Swedish universities consistently rank among the top in the world, producing talent in various fields, including technology, engineering, healthcare, and business. Swedish employees are known for their strong work ethics, including punctuality, professionalism, and dedication to their tasks. Employees in Sweden enjoy comprehensive social benefits, including healthcare, parental leave, and unemployment insurance. These benefits can attract and retain a talented work force.
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Sweden is one of a few countries in Europe which do not have a national minimum wage. Instead, minimum wage levels are fixed in collective bargaining agreements and can vary between industries.
Standard Working Hours
The standard work week in Sweden according to the Working Hours Act is 40 hours a week. After five consecutive working hours, the employee must be granted a break. The standard work week is Monday – Friday.
The maximum allowable overtime is 48 hours over a four-week period, or 50 hours over the course of a calendar month. There are no legal regulations on overtime pay but employers may have to respect the provisions of any applying collective agreements.
In Sweden, the usual payroll cycle is monthly, with employers making salary payments on the 25th day of each month.13th-month payments are not legally required, however employers have the discretion to provide bonuses.
Paid time off
Employees are entitled to 25 days of paid vacation each year after one year of work at the company at a 2.08 monthly accrual. It is common to give 30 days per year. Once accrued, vacation days can be held for up to five years.
The employer compensates the employee for the 2nd to 14th day of sick leave, while sickness lasting beyond 14 days is covered by social security benefits. It’s important to note that the first day of sickness is unpaid. The compensation for sick leave ranges from 75.00% to 80.00% of the employee’s regular pay rate, depending on the duration of the sickness. A medical certificate must be provided by the employee to receive sick pay.
In Sweden, labour regulations do not differentiate between maternity and paternity leave. Instead, the law establishes statutory parental leave. Each parent is entitled to a combined 480 days of paid parental leave per child, with 90 days specifically allocated to each parent.
In other words, a single parent can request a maximum of 390 days of parental leave. Expectant mothers have the option to commence maternity leave as early as 60 days before the anticipated due date.
Employees can also use their parental leave entitlement to reduce their working hours until the child is eight years of age.
Each parent is entitled to a combined 480 days of paid parental leave per child, with 90 days specifically allocated to each parent.
Termination of Employment
The termination procedure differs based on the existing employment agreement and collective agreement, considering the contract type and the reason for termination. Termination must be based on fair and justifiable grounds, such as redundancy, poor job performance, or a breach of employment terms. It’s essential for employers to document the reasons for termination.
The notice period in Sweden depends on the length of the employee’s continuous service with the employer. The notice period during the first 6 months of employment Is usually 1 month. After the first 6 months, the notice period can be up to a maximum of six months. The exact length of the notice period is typically specified in the employment contract or collective agreement.
The probationary periods are specified in the employee’s employment contract or collective agreement but usually does not exceed six months.
In Sweden, individuals from non-EU countries need to apply for a work permit to work there, but there are some exceptions. Citizens aged 18-30 from Australia, Canada, Hong Kong, Japan, New Zealand, and South Korea can apply for a working holiday visa, allowing them to work for up to one year. For employment lasting less than three months, citizens of specific countries must obtain both a work permit and a visa.
To be eligible for a work permit, you must have received an official job offer from a Swedish employer. The job should have been advertised in the EU/EEA for at least ten days and provide employment terms in line with Swedish collective agreements or customary in the occupation or industry. Additionally, the job should offer a minimum monthly salary of SEK 13,000 before taxes. You are also required to hold a valid passport in your home country.
The standard rate of VAT in Sweden is 25.00%.