Employer of Record in Sweden
Contents
General information, not legal or tax advice — confirm with a local adviser before you act.
An employer of record can employ a worker in Sweden for a client. Swedish staffing rules depend on the actual placement, including who directs the work. A foreign company can also hire directly where it meets the Swedish employer duties that arise. For the wider hiring choices, see Hiring in Sweden and Hiring contractors in Sweden. For genuinely independent services, 4dev.com’s Contractor Platform works with contractors in Sweden; 4dev.com is not an Employer of Record.
What an employer of record does in Sweden
An employer of record is the legal employer of a worker engaged for a client. The client may direct day-to-day work. If the arrangement qualifies as hired-in labour, the client must take the work-environment safeguards needed in its business. The employment and client contracts should identify who performs each duty without displacing the worker’s statutory and agreed rights.
When an EOR qualifies as hired-in labour
Swedish agency-work law applies when a staffing company employs a worker to hire that person out to work under the client company’s direction and control. An EOR arrangement can fall within that definition, but its label does not decide the question: the employment-for-hire-out purpose and the client’s control over the work do.
Where the conditions are met, the staffing company must provide basic working and employment conditions at least equivalent to those that would apply if the client employed the person directly. Statutory exceptions, collective-agreement provisions and the between-assignment-pay exception can change that comparison, so the relevant agreement and the actual placement need to be checked. The client also has to take the work-environment safeguards needed for hired-in labour working in its business.
The client has a separate placement obligation only after a hired worker has spent more than 24 months at the same operating unit within 36 months: it must offer permanent employment within one month or pay two current monthly salaries instead. This is a qualifying hired-labour rule, not a universal maximum duration for every EOR arrangement; a client that breaches the specified client duties can owe damages for loss and violation.
Is there an EOR licence to check?
The available material does not establish whether Sweden has a dedicated EOR licence or EOR-specific registry. A company-record search or industry credential alone cannot establish that the proposed employment arrangement meets Swedish duties. Identify the legal employing entity and check its employer-registration position where Swedish registration duties apply.
Skatteverket registers those obliged to make tax deductions or pay employer contributions, and a business that must register notifies the agency before its business activity begins. For a foreign legal employer, the registration route can be digital or use form SKV 4632; the checks should match the entity that will sign the employment contract, rather than a group brand or sales entity.
Also ask for the applicable collective-agreement position, the employment contract, and the insurance evidence that applies to the worker. Where a work permit is involved, the employer must arrange medical, life, occupational-injury and occupational-pension insurance from the start of employment. These records help establish how the proposed arrangement will operate.
Who signs and who directs the work
The legal employer holds the employment relationship, while the client’s actual direction of the work determines whether the hired-labour rules become relevant.
| Party | Signs / decides | Duty to verify |
|---|---|---|
| Client | Contracts with the legal employer and may assign day-to-day work. | Test whether the worker is hired in under its direction and control; if so, provide the work-environment safeguards needed in its business and track the qualifying same-unit placement period. |
| EOR / legal employer | Enters into the employment agreement with the worker and agrees the client arrangement. | Confirm the applicable employment terms; where the staffing-law conditions are met, provide the required equivalent basic conditions. If Swedish employer duties apply, keep the registration and employer reporting position in order. |
| Employee | Enters into the employment agreement with the legal employer and performs the assigned work. | Check the employment terms and the named legal employer; if the qualifying placement rule is reached, consider the client’s permanent-employment offer within the response period it sets. |
Hiring steps before the first Swedish payroll
Set the employment terms, check the applicable permit branch and establish the employer-registration position before the first payroll. Provider onboarding, registration and any permit decision each affect the start date; the rules below set no combined deadline.
| Step | Action | Timing or trigger |
|---|---|---|
| 1. Set the employment terms | Identify the legal employer and settle the applicable collective-agreement or individual terms before the employment agreement. | Before signing the employment agreement |
| 2. Complete the standard new work-permit branch, if applicable | For a standard new non-EU/EEA work permit, advertise the vacancy in Sweden and the EU/EEA and Switzerland, then sign the employment agreement. The terms must meet the applicable salary requirement. The legal employer must arrange medical, life, occupational-injury and occupational-pension insurance effective from the start of employment, including where it hires the worker out to a Swedish company. Migration Agency employer instructions | Advertise for at least 10 days before signing; permit decision has no stated general deadline here |
| 3. Establish the employer-registration position | Test whether Swedish tax-deduction or employer-contribution duties arise. A foreign company can apply digitally or use SKV 4632. | Before relevant business activity where registration is required; allow for processing |
| 4. Prepare the first payroll record | The registration material asks for the first payroll or benefits date, estimated payroll and employee count, including relevant posting and social-insurance facts. | Before the first payroll or benefits date |
| 5. File employer declarations | Once registered, report tax deductions and employer contributions for each reporting period. | A calendar month is the default reporting period |
| Total | Plan around provider onboarding, employer registration and any permit decision. | No combined deadline stated |
What a Swedish EOR hire costs
Start with the 31.42% standard statutory employer charge, then price collective pension and any provider fee as separate, conditional items rather than treating one percentage as an all-in EOR cost.
| Standard statutory employer charge | 31.42% of the monthly chargeable remuneration | Swedish Social Contributions Act |
| ITP1 basic retirement pension, eligible covered white-collar staff | 4.5% of pay through SEK 52,125 / month; 30% from SEK 52,125 to SEK 208,500 / month | Avtalat ITP1 premium schedule |
| Temporary youth-relief rate | 20.81% on the eligible portion, instead of the normal 31.42% | Swedish temporary youth-relief law |
The table applies the standard 31.42% statutory charge to two adult salary references. It excludes conditional pension and provider costs.
| Salary reference | Gross monthly salary | Statutory employer charges | Selected monthly total | Limited 12-month annualisation | Source |
|---|---|---|---|---|---|
| National average salary (2025) | SEK 42,900.00 | SEK 13,479.18 | SEK 56,379.18 | SEK 676,550.16 | Medlingsinstitutet Lönestrukturstatistik; Swedish Social Contributions Act |
| Senior system developer, Unionen level 3 upper band | SEK 72,200.00 | SEK 22,685.24 | SEK 94,885.24 | SEK 1,138,622.88 | Unionen system developer salaries; Swedish Social Contributions Act |
For eligible covered white-collar staff, the separate ITP1 basic retirement illustration is SEK 1,930.50 per month at SEK 42,900 pay and SEK 8,368.13 at SEK 72,200 pay. It applies only to eligible covered staff from the month they turn 25 through the month before 66, covers basic retirement pension only, and must not be added to the table as a universal or all-in total.
Temporary youth relief is a different, dated case and cannot be stacked with the ITP1 illustration. For remuneration paid from 1 April 2026 through 30 September 2027 to a worker who was at least 18 but under 23 at the beginning of the year, the 20.81% rate applies only to the first SEK 25,000 in a calendar month; the standard 31.42% applies above that cap. At the SEK 42,900 reference salary, the illustrated employer charges are SEK 10,826.68, which is SEK 2,652.50 below the standard-charge illustration.
Provider fees, insurance outside the stated cases, leave and sick-pay exposure, benefits, supplementary pension premiums and other collective-agreement costs are not included here. Obtain those figures from the proposed legal employer and provider before treating either scenario as a hiring budget.
Collective terms and paid time off still apply
Sweden has no statutory minimum wage and collective agreements are not universally extended. An EOR hire still requires the applicable terms to be identified. The proposed legal employer should confirm the agreement, if any, that covers the role and which earnings it treats as pensionable before the employment budget is approved.
Employees have 25 vacation days in a vacation year, reduced to five days when employment starts after 31 August in that year; vacation pay is due only where it has been earned. Employer sick pay is 80% of lost employment benefits for the first 14 calendar days, subject to a waiting deduction equal to 20% of average weekly sick pay. Confirm how the legal employer will administer these obligations and whether the provider’s quote includes their costs.
Ordinary working time is capped at 40 hours a week, with limited averaging over up to four weeks where the work conditions require it. Parental-leave rights also affect availability: an employee with a child under 18 months may take full leave without drawing parental benefit. See Hiring in Sweden for the country-level rules on leave, working time and notice.
Where the arrangement runs out
A Swedish EOR arrangement has no single duration rule. The hired-labour placement clock, termination duties, tax presence and IP terms depend on different facts.
The same-unit placement clock
The client-side clock applies only to qualifying hired labour: the worker must be employed for hire-out and work under the client’s direction and control. Once that worker has spent more than 24 months at the same client operating unit within 36 months, the client must offer indefinite employment within one month or instead pay an amount equal to two current monthly salaries. Collective agreements can vary parts of the statutory framework, so track the operating unit, placement history and applicable agreement rather than treating this as a universal EOR maximum.
Termination and transfer
The legal employer must run the employment termination process. Both parties have at least one month of notice, while employer notice rises by tenure to six months after ten years; dismissal also requires objective grounds under the statutory test. A breach can lead to wages and damages for loss and violation, while the separate 16, 24 and 32-monthly-salary amounts concern refusal to comply with a judgment annulling a dismissal, not ordinary severance. See Hiring in Sweden for the full notice table.
For redundancy, a consultation step can be required before the employer decides where the statutory conditions apply.
the provisions on obligations to consult according to the Co-Determination Act are applicable even if the redundancy concerns only one employee
— Robert Stromberg, Partner and Head of Employment and Investigations, Advokatfirman Cederquist KB
Tax presence, IP and work location
An EOR label is not a universal safe harbour for tax presence, intellectual-property ownership or cross-border work-location issues. Record where the person actually works, who directs the work, and the contract’s IP and tax-allocation terms; a hired consultant’s IP can otherwise remain with the consultant or its employer unless the client expressly agrees rights to use the deliverables.
Small portions of unforeseen and occasional telework remain a challenge that can lead to compliance error and ultimately legal abuse.
— Sevim Güven, Partner and Head of PAS Tax Sweden, and Eva Ahlin, Director, People Advisory Services Tax, EY Sweden
A short remote-work spell does not automatically create Swedish tax or immigration liability; assess the actual work-location facts.
When you can hire without an EOR
A foreign company can hire directly without a Swedish subsidiary when the actual tax, employer-contribution and social-insurance facts are assessed and the company meets the Swedish duties that follow. The cited employer-contribution rule applies to chargeable remuneration for work in Sweden without requiring the payer to have a Swedish permanent establishment, subject to its stated exceptions.
Where employer registration is required, notify Skatteverket before the relevant business activity begins. A foreign company can register digitally or use form SKV 4632; for a foreign legal entity, prepare the home-country registration certificate that identifies the authorised signatory, along with the first payroll or benefits date, estimated payroll and employee count. Skatteverket’s foreign-business registration guidance is the practical starting point for the duty check.
After registration, the employer files an employer declaration for each reporting period, normally a calendar month, with aggregate and recipient-level information. Allow for registration processing when setting the first payroll date; the cited rules set no general processing duration.
Which alternative fits the job?
The right route depends on who employs or contracts with the worker, which Swedish duties arise, and whether the services are genuinely independent.
| Route | Legal employer / contracting party | Operational burden | Best fit / limiting condition |
|---|---|---|---|
| Employer of record | The provider is the legal employer; the client directs the work only within the actual arrangement. | Confirm the legal employer, applicable terms, employer-registration position and whether the placement qualifies as hired-in labour. | An employee engagement where the provider will be the legal employer; the agency-work test and same-unit placement facts can still matter. |
| Directly registered foreign employer | The foreign company is the legal employer. | Test Swedish duties, register where required, prepare the payroll record and file employer declarations. | A foreign company that can carry the ongoing Swedish employer administration without first setting up a Swedish subsidiary. |
| Swedish entity | The Swedish entity is the legal employer. | Establish and operate the entity, then run the employer duties that apply to it. | A continuing Swedish operation that needs its own local employing structure; incorporation and registration time depends on the case. |
| Genuinely independent contractor | The contractor or the contractor’s business is the contracting party. | Set a services contract and assess the actual independence of the engagement. | Genuinely independent services, not a relabelled employee relationship. See Hiring contractors in Sweden for the classification and registration tests. |
Sweden has no statutory minimum wage or universal extension of collective agreements, so the EOR and employment routes still require the applicable collective or individual terms to be identified. Assess contractor independence from the work arrangement, not the route name.
How to choose a Swedish EOR provider
Ask the provider for the named legal employer, the placement terms and the cost breakdown before committing.
- Which legal entity will employ the worker, sign the employment agreement and hold the Swedish employer-registration responsibilities where they apply?
- Does the proposed placement meet the hired-labour test: employment for hire-out and work under the client’s direction and control?
- How will the provider and client track time at the same operating unit, including the qualifying more-than-24-months-in-36 rule and the client’s offer-or-two-monthly-salaries response?
- Which collective agreement, if any, covers the role? Is the worker eligible for ITP1, and how will pensionable earnings be reported?
- If a work permit is relevant, which salary branch applies, when will the vacancy be advertised, and when do the four required insurances begin?
- What is the first-payroll plan, and what time is allowed for provider onboarding, employer registration and any permit decision?
- Which statutory charges, collective costs, insurance, benefits and provider fees are included, excluded or subject to a separate quote?
- If the placement ends or the worker moves to the client’s own entity, which party runs the employment process, what notice or consultation conditions apply, and how are records transferred?
Work-permit checks before promising a start date
For a relevant first-time non-EU/EEA hire, confirm the permit category, salary rule, advertising record and insurance before promising a Swedish start date.
For most such permits decided from 1 June 2026, salary must reach 90% of the current median and meet the collective-agreement or customary level for the profession or industry. The current 90% floor is SEK 34,470 per month. A listed eligible exception may use 75% of the median, currently SEK 28,725, but the government list controls eligibility for the particular job. Check the Migration Agency’s salary guidance for the applicable test.
For a standard new work permit, advertise the vacancy in Sweden and the EU/EEA and Switzerland for at least 10 days before both parties sign the employment contract. The legal employer needs medical, life, occupational-injury and occupational-pension insurance in place when employment starts. The same requirement applies when a staffing company supplies the worker to a Swedish business. Extensions of permits granted under the earlier rules and applied for between 1 June and 1 December 2026 follow the transitional requirement instead.
Confirm the transition category, occupation and documents before setting a start date. The permit decision time depends on the case.
Questions people actually ask
Is using an EOR legal in Sweden?
An EOR arrangement can be used in Sweden, but the name does not decide the legal analysis. Where a staffing company employs a worker for hire-out under the client’s direction and control, the agency-work rules apply, including equivalent-condition and client-side duties subject to their stated exceptions.
Can a foreign company hire without a local entity?
Yes, a foreign company can take the direct-employer route without a Swedish subsidiary if it meets the Swedish duties that arise from the actual work, tax and social-insurance facts. Where registration is required, it can apply digitally or use SKV 4632, then file employer declarations for each reporting period. Allow for registration processing when planning the start date.
What does an EOR cost beyond salary?
For a standard adult statutory illustration at SEK 42,900.00 gross per month, employer charges are SEK 13,479.18 at 31.42%, producing a selected monthly total of SEK 56,379.18. That is not an all-in EOR price: conditional collective pension, insurance, leave and sick-pay exposure, benefits and provider fees require separate confirmation.
Does every EOR placement end after 24 months?
No. The client duty arises only where the arrangement qualifies as hired-in labour and the worker has spent more than 24 months at the same operating unit within 36 months. The client then offers indefinite employment within one month or pays two current monthly salaries instead; that is not a universal EOR maximum.
How soon can a non-EU/EEA hire start?
The permit decision time depends on the case. For most relevant first-time permits decided from 1 June 2026, the current salary floor is SEK 34,470 per month alongside the collective-agreement or customary-pay test, and the standard new-permit branch requires at least 10 days of advertising before the employment agreement is signed.
Are collective agreements mandatory for every EOR hire?
Sweden has no statutory minimum wage and no universal extension of collective agreements. Whether an agreement covers the role, and which pension or other terms follow, must be checked for the actual legal employer and employment.
What happens when we move the employee to our own entity?
Moving the employee changes the legal-employer arrangement and needs a planned employment exit or transfer rather than a label change. Confirm the legal employer’s termination process, applicable notice and any consultation conditions; if the qualifying hired-labour placement clock applies, the client’s offer-or-payment duty must also be considered.
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