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Labor Laws in Sweden

  • Annual Leave: 25 days
  • Public Holidays: 14
  • Maternity Leave: 480 days.
  • Workweek: 40 hours per week.

Income Tax in Sweden

Sweden has progressive income tax rates from 0% to 32%.

Value Added Tax (VAT) in Sweden

The standard VAT rate is set at 25%.

Social Security in Sweden

Employer Contributions

  • Employers are required to pay 31.42% of the gross salary and taxable benefits for their employees.
  • This rate applies to all employees covered by the Swedish social security system.
  • Age-Based Reductions:
    • Employees born 1937 or earlier: 0%
    • Employees born 1938 to 1957: 10.21%
    • Employees born 1958 or later: 31.42%
  • Employers may have reduced rates under certain conditions, such as hiring young workers or first-time employees.

Employee Contributions

  • Employees contribute a pension fee of 7% on gross earned income, capped at an annual income of SEK 599,250, which translates to a maximum contribution of about SEK 41,948.
  • This fee is typically fully tax-deductible on the employee's tax return.

Work Visas in Sweden

National Work Permit

  • Description: For individuals who have a job offer from a Swedish employer.
  • Requirements: The job must have been advertised in the EU/EEA for at least ten days, and the terms of employment must match Swedish collective agreements or be customary within the occupation.

EU Blue Card

  • Description: A combined work and residence permit for highly skilled workers.
  • Requirements: Applicants must have a job offer in a qualifying profession, a university degree, or at least five years of professional experience. The salary must meet a specified threshold, typically at least 80% of the median salary in Sweden.

Intra-Corporate Transfer (ICT) Permit

  • Description: For employees transferred from a foreign company to a branch in Sweden.
  • Requirements: Applicable to employees in managerial or specialist roles.

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