Sweden flag Sweden: Operating a Business in Sweden

Work conditions in Sweden

The Active Population in Figures

201820192020
Labour Force 5,399,8935,455,4065,477,192

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 82.74%82.97%83.13%
Men activity rate 84.61%84.75%84.95%
Women activity rate 80.80%81.13%81.25%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
35 or 40 hours
Retirement Age
65
Working Contracts
The work contract is governed by legal measures and to a lesser degree by collective agreements and individual negotiation.
The work contract is generally a permanent contract, but fixed-term contracts may be signed under certain conditions.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labour regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
There is no minimum wage in Sweden and instead salaries are negotiated by collective bargaining between trade unions and employers.
Average Wage
According to Statistics Sweden, the average gross monthly wage was about SEK 37,100 in 2021.
Social Contributions
Social Security Contributions Paid By Employers: Swedish social security contributions for employed personnel are payable by the employer at a rate of 31.42 percent of the gross salary. There are no upper limits in respect of employer contributions.
Social Security Contributions Paid By Employees: Swedish social security contributions are payable by the employee at the rate of 7 percent of the net earned income with a cap at an annual income of SEK 572,970 (maximum contribution SEK 40,100).

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Social Partners

Employer Associations
SINF - Swedish Industry Association
NIR - International Council of Swedish Industry
Swedish Enterprise - Confederation of Swedish Enterprise
Tillväxtverket - Swedish Agency for Economic and Regional Growth
Social Dialogue and Involvement of Social Partners
Unions are quite powerful in Sweden. Collective agreements are very important in Sweden and they cover most workers. Social dialogue happens only between employers and employees. However, a Commission or a State may be a third party in the negotiations. If the two parties do not come to an agreement, it is the Commission or the State that will decide and this encourages the parties to find an agreement.
Labour Unions
LO (Landsorganisationen I Sverige) The Swedish Trade Union Confederation
TCO (Tjanstemannens Centralorganisation) (in English) The Swedish Confederation of Professional Employees
Unionisation Rate
67.3%.
Labour Regulation Bodies

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Latest Update: February 2024

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