Payroll in Sweden – how it works and your three options
Paying salaries in Sweden means registering as an employer, withholding tax, paying employer contributions and filing a monthly employer declaration (AGI). This guide explains the rules in English and compares the three ways to handle payroll: a payroll bureau, an Employer of Record, or doing it yourself with payroll software.
Try UNIKBOK in English – freePayroll bureau, Employer of Record or software?
| Option | How it works | Pros | Cons |
|---|---|---|---|
| Payroll bureau (lönebyrå) | An accounting or payroll firm runs payroll for your Swedish company. | You hand over the work and get advice. | Monthly fee per payslip, data sent back and forth every month, bookkeeping often a separate cost. |
| Employer of Record (EOR) | A provider employs the person on your behalf in Sweden. | You can hire in Sweden without your own Swedish company. | Often a substantial service fee; compare the contract, benefits, insurance and responsibilities. It may still be useful even with a Swedish company. |
| Payroll software (do it yourself) | You run payroll in a program connected to your bookkeeping. | A lower service-fee option if you handle the administration yourself; direct control. | You need to learn the basics – which this guide covers. |
Compare payroll service fees
Enter your employee count and quoted service fees. This compares administration fees, not equivalent service packages.
Illustrative gross salaries SEK 70,000 + standard employer contributions SEK 21,994 = SEK 91,994 per month, before holiday pay, pension, insurance and other costs. Actual EOR employment costs and contract terms may differ.
| Option | Service fee / month | Assumptions |
|---|---|---|
| Payroll software (UNIKBOK) | SEK 200 | SEK 200/month excluding VAT per company, including bookkeeping; up to five employees. |
| Payroll bureau | SEK 700 | Your assumed fee per payslip × employees; check setup, minimum and other charges in the quote. |
| Employer of Record | SEK 10,000 | Your assumed service fee per employee; benefits, insurance, deposits and other contract charges may be additional. |
Amounts exclude VAT where applicable. The illustration uses the standard 2026 employer contribution rate of 31.42%; age-based and other reductions are not calculated. Bureau and EOR fees are your assumptions, not verified market prices. Automatic bank connection in UNIKBOK is optional at SEK 500/year.
How payroll works in Sweden – step by step
- Register as an employer. Register with Skatteverket before the first salary is paid. A limited company does this through verksamt.se or Skatteverket’s e-service.
- Employment contract. Give the employee written information about the main terms of employment – start date, salary, working hours, notice and holidays – within seven days of starting.
- Calculate the salary. Gross salary, overtime, sick pay, holiday pay and any benefits (förmåner) such as a company car.
- Withhold preliminary tax. Use the tax table (skattetabell) for the employee’s municipality, or the decision on special tax. Non-residents usually pay SINK, a 22.5 % tax in 2026, subject to a Skatteverket decision.
- Pay employer contributions. 31.42 % of the gross salary for most employees in 2026. Reduced rates apply for some age groups – check Skatteverket.
- File the AGI. The employer declaration (arbetsgivardeklaration) at individual level, normally by the 12th of the month after payment (17th in January and August) for smaller employers. Weekends and holidays can move the date; larger employers have different filing rules. Check Skatteverket’s calendar.
- Pay the tax account. Withheld tax and employer contributions are paid to the company’s tax account (skattekonto) by the same date.
- Payslip and bookkeeping. Give the employee a payslip (lönebesked) and book the salary, tax and contributions in the accounts.
Who needs to run payroll in Sweden?
Every company that pays salaries in Sweden is an employer – including an owner-managed limited company (aktiebolag) that pays a salary to its owner. A sole trader (enskild firma) cannot pay salary to themselves; the owner is taxed on the profit instead, but must run payroll for any employees.
A foreign company without a Swedish entity can register as an employer in Sweden itself or use an Employer of Record. Once you have your own Swedish company, payroll is usually simplest to run in-house.
Tax on salaries: tax tables and SINK
For employees living in Sweden you withhold preliminary tax according to the tax table for their municipality, or according to a decision on adjustment (jämkning). For a Swedish employer paying main employment income without an A-tax decision, the normal rule is 110 % of the applicable table deduction. Secondary employment income normally has a 30 % deduction; check the employee’s decision and Skatteverket’s rules.
Employees who live abroad and stay in Sweden for less than six months normally pay special income tax for non-residents (SINK), 22.5 % in 2026, subject to a Skatteverket decision. The employee applies for a SINK decision from Skatteverket.
Employer contributions (arbetsgivaravgifter)
On top of the gross salary the employer pays contributions for pensions, health insurance and other social security. The standard rate in 2026 is 31.42 %. A salary of SEK 35,000 therefore costs about SEK 46,000 per month before holiday pay, pension and other costs.
Holidays, sick pay and collective agreements
Under the Annual Leave Act (semesterlagen) employees normally have 25 days of annual leave; paid days depend on holiday pay earned, and special rules apply when starting late in the holiday year. During eligible sick leave the employer normally pays 80 % sick pay for scheduled work during the first 14 calendar days, with a qualifying deduction (karensavdrag) of 20 % of average weekly sick pay. From day 15 the employee can apply to Försäkringskassan for sickness benefit.
Sweden has no statutory minimum wage. Pay levels, pensions and extra benefits are often set in collective agreements (kollektivavtal). Your company is only bound by one if it has signed it or is a member of an employers’ organisation.
Payroll bookkeeping
Every payroll run must be booked: salary expense, withheld tax, employer contributions and the payment from the bank. When payroll and bookkeeping are in the same program, the entries are created automatically and you can reconcile the AGI with the payroll and the accounts.
How UNIKBOK helps with Swedish payroll
In English
The whole payroll module is available in English, while following Swedish rules, tax tables and AGI formats.
Contracts and payslips
Create Swedish employment contracts and produce a payslip for every employee each month.
AGI to Skatteverket
The employer declaration is generated from the payroll you have already run.
Booked automatically
Salary, tax and employer contributions are booked directly in the company’s accounts.
Employer certificates
Generate an employer certificate (arbetsgivarintyg) from the payroll history when someone leaves.
One price
SEK 200 per month excluding VAT per company – bookkeeping, invoicing, payroll and year-end included.
Frequently asked questions
Do I need a payroll company in Sweden?
No. Any Swedish company can run its own payroll. A payroll bureau is an option if you want to hand over the work, but it is not required.
What is an Employer of Record in Sweden?
A provider that formally employs a person in Sweden on behalf of a company that has no Swedish entity. Once you have a Swedish company, you can employ people directly.
What is the AGI?
The employer declaration (arbetsgivardeklaration) filed with Skatteverket every month, with salary, withheld tax and employer contributions per employee.
When is the AGI due?
For smaller employers normally the 12th after the payment month, or the 17th in January and August. Weekends and holidays can move the date, and larger employers follow different filing rules; check Skatteverket’s calendar.
How much are employer contributions in Sweden?
31.42 % of the gross salary for most employees in 2026. Reduced rates apply for certain age groups.
What is SINK?
Special income tax for non-residents – a 22.5 % tax in 2026, subject to a Skatteverket decision for people who live abroad and work in Sweden for a limited time.
Can I pay a salary to myself?
Yes, from a limited company, and the company then runs payroll for you like any other employee. A sole trader takes out profit instead of salary.
Is there a minimum wage in Sweden?
No statutory minimum wage. Pay levels are set in collective agreements in many industries.
Can I run Swedish payroll in English?
Yes. UNIKBOK can be used in English, including payroll, payslips and the AGI.
Sources and review date
Reviewed 2026-10-30. Rules and examples refer to 2026; check the official requirements for your circumstances.
Run your business in English
UNIKBOK costs SEK 200/month excluding VAT per company. Bookkeeping, invoicing, payroll for up to five employees, year-end tools and up to three users are included. Automatic bank connection is optional at SEK 500/year. Companies registered within the last six months can try it free for six months; other companies for two months. No lock-in.
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