FAQs
How does vacation work in Sweden?
How does sick pay work in Sweden?
How do pension plans work in Sweden?
How does parental leave work in Sweden?
What is the Employment Security Act (Swedish acronym “LAS”)?
What is the Right of Codetermination Act (Swedish acronym “MBL”)?
How does vacation work in Sweden?
Employees in Sweden earn 25 paid vacation days per year, or more if agreed in their employment contract or in a collective agreement of which their employer is a party. Unless otherwise agreed, vacation can only be taken out one year in arrears. In Swedish legislation the year during which a given vacation day is earned is referred to as the “earning year” (Swe. “intjäningsår”), while the year during which the same vacation day is taken out is called the “vacation year” (Swe. “semesterår”). The scheduling of vacation leave is formally decided by the employer, but in most cases the employee submits a vacation schedule for their employer’s approval.
Any vacation days an employee has earned after the first 20 can be saved for up to 5 years. All other vacation days are normally to be taken out or cashed out during the vacation year, though some employers and employees agree on other arrangements. Additionally, employees who have earned vacation days during their parent leave or sick leave have the right to save up to 25 vacation days to the next year.
How does sick pay work in Sweden?
For the first working day during which an employee has called in sick no salary is paid, unless otherwise agreed in the employment contract. From the 2nd to the 14th sick day the employer is to provide a sick pay corresponding with 80% of the employee’s normal salary. On the 15th consecutive work day during which the employee is absent due to sickness the employer’s obligation to provide sick pay ends. The employee is instead to report to the Social Insurance Office (Swe. “Försäkringskassan”), which then is to provide them with a monthly sickness benefit until such time as they are healthy enough to work.
How do pension plans work in Sweden?
The general pension contribution is paid both by the employer through the payment of social tax (10,21% of the gross wage) and by the employee through the payment of withholding tax (7% of the gross wage).
Private pension schemes are very popular in Sweden and can be up to 30% of the employees monthly gross salary. The contribution can be from the employee, employer or both. Employees can pay towards the private pension that comes directly from their monthly payroll; this is not taxed until exercised.
How does parental leave work in Sweden?
During parental leave the Social Insurance Office (Försäkringskassan) pays out a compensation to the parent, the exact size of which depends upon their normal salary level and how much parental leave they have already taken out. The employer does not pay salary to the employee when they are on parental leave and the employer must be notified of the planned time off at least 2 months before the parental leave is to start.
A pregnant employee can apply for up to 60 days of leave prior to the birth of her child. The number of paid days an employee receives is determined by the Social Insurance Office and is based on the health of the future mother, how physically demanding her job is and her employer’s ability to provide her with lighter work tasks during the pregnancy. The father has the right to 10 days off in connection to the birth of the child.
In addition to any parental leave taken in connection with the birth, the parents of a child get 480 parental leave days to share. Of these each parent has 60 non-transferable leave days, the rest can be shared in whatever manner the parents choose.
What is the Employment Security Act (Swedish acronym “LAS”)?
The Employment Security Act regulates the types of employment recognized under Swedish law and the various levels of job security an employee can demand, depending on their seniority and type of employment. The act also regulates the mandatory contents of a Swedish employment contract.
What is the Right of Codetermination Act (Swedish acronym “MBL”)?
The Right of Codetermination Act regulates the rights labor unions and, to a lesser extent, individual employees, have to information and influence in the workplace. The act also regulates how strikes and other forms of industrial action are to be conducted and how collective agreements can be formed between employers and labor unions.