Innovation, equality, and sustainable business practices are just a few reasons why Sweden has become one of the most appealing countries for employment all over the world. Sweden values its workers and offers them a wealth of financial benefits and much more.
Employment Benefits in Sweden
1) Leave Policies
a) Annual Leave
The Annual Leave legislation in Sweden distinguishes between paid and unpaid leave, as well as between the terms ‘vacation year’ (starting on the 1st of April and ending on the 31st of March of the subsequent year) and ‘qualifying year’ (defined as the 12-month phase before the start of the country’s vacation year). A Swedish employee can earn their annual leave during their qualifying year and utilize the paid leave in the subsequent (vacation) year. Employees get 25 annual paid vacation days and, under certain circumstances, can carry any unused paid days forward to the following year.
b) Parental Leave
Employees can go on parental leave until their child is 18 months old. In addition, mothers can draw their parental allowances two months before their child’s expected birth date. Fathers can also go on a 10-day leave with regards to their child’s birth.
c) Disability and Sickness Leave
If a person has been working for an organization for at least 14 days or if their employment is likely to continue for over a month, they are entitled to a paid sick day. From day 1 to day 14, the employer pays the sick days at 80% of the employee’s total salary. However, the employer can make a 20 percent deduction from the employee’s benefits during the week in which the employee has called in sick. Should the employee suffer a sickness within the next five days, it will be assumed that the prior leave period is still in continuation.
From the 15th day onwards, the employee might be eligible for full compensation, which will be covered by the Swedish state. Such entitlements are determined by the Social Security Agency and are subject to rigid rules.
Disability and sick leave are not considered any different from each other. However, in case of a full or partial disability, the employee might be eligible for sickness compensation or activity compensation, either of which will be paid by the state.
2) Social Security
|Pension and Mandatory Individual Account
|10.21% for Old Age
0.6% for Survivors
|Sickness and Parental Benefits
2.6% for Parental Benefits
3) Insurance and Healthcare
Apart from the insurances that are part of the social security contribution, an employer is not obligated to offer any other forms of insurance to their employees. However, employers who have signed bargaining agreements must take out specific insurances, like work injury and group life insurances.
To sum up, Sweden ensures that its employees are adequately protected under the law. This article covered the most major and common benefits available to employees working in Sweden. To learn more about the Swedish employment laws, please feel free to check out some of the other blogs on our website.