Working in Sweden: pay, tax, contracts, money

Many rules at work, such as pay rules, come from collective agreements.

How do you find a job in Sweden?

Arbetsförmedlingen (the Swedish Public Employment Service) is a government agency that works to help job seekers get jobs. It collects information on vacancies and helps job seekers and employers who need staff to find each other.

Unions and employers: the labour market parties

Trade unions and employer organisations are called the labour market parties. Trade unions are organisations for employees. They negotiate with employers for their members about pay and other conditions.

Sweden has just over 50 trade unions (2026). Most belong to one of three central organisations, which bring many unions together:

• LO: unions mainly for blue-collar workers;
• TCO: unions for white-collar employees;
• Saco: unions for university graduates.

Municipalities and regions have the employer organisation Sveriges Kommuner och Regioner (SKR), and the state has Arbetsgivarverket. In the private sector, Svenskt Näringsliv, which brings together many employer associations, is the largest.

You have a right to be a union member, called föreningsrätt (the right of association). Your employer may not harm you for being a member. The employer also may not try to stop you joining or make you leave.

Collective agreements and the Swedish model

A collective agreement (kollektivavtal) is a written agreement on terms of employment, for example pay and working hours. A union makes it with an employer or an employer organisation.

Sweden has no law that sets a minimum wage. The parties are responsible for how pay is set. Many collective agreements have minimum pay, for example for new employees. Still, legal rules ban discriminatory pay setting. For discrimination, see Rights and the media.

When the parties themselves have the main responsibility for pay and terms, this is called the Swedish model. In 2025, collective agreements covered 88 percent of employees.

If the parties cannot agree on a new collective agreement, there can be a conflict. In a strike (strejk), employees stop working to make the employer accept their demands. In a lockout, the employer instead keeps the employees out. Medlingsinstitutet (the Swedish National Mediation Office) can appoint mediators, who help the parties agree. During a strike or lockout, the employer pays no wages, but the union can pay its members compensation.

Employment contracts and probationary employment

When you start a job, you and your employer agree on an employment contract. The employer must give you written information about the terms. You must get details such as pay, working hours and tasks within seven days of starting work.

Under the Employment Protection Act, the main rule is permanent employment (tillsvidareanställning), a job with no end date. Fixed-term employment is allowed only in some cases, for example cover for an absent employee, seasonal work and probationary employment.

A probationary employment (provanställning) lasts at most six months. If either of you does not want to continue, this must be said before the probation ends. Otherwise it becomes permanent.

With permanent employment, your employer needs objective grounds to dismiss you. These can be a shortage of work or personal reasons. By law, the notice period is at least one month.

Working hours, holiday and work environment

Under the Working Hours Act (arbetstidslagen), ordinary working hours (without overtime) can be at most 40 hours a week. Collective agreements can have other rules. The Annual Leave Act (semesterlagen) gives you the right to 25 days of holiday each year.

The Work Environment Act (arbetsmiljölagen) aims to prevent work-related illness and injury. The employer has the main responsibility for the work environment. A workplace with at least five employees must have a safety representative (skyddsombud). This is an employee who watches over the work environment. Arbetsmiljöverket (the Swedish Work Environment Authority) checks that the rules are followed, often by inspecting workplaces.

A-kassa if you are unemployed

A-kassan, the unemployment insurance fund, pays compensation to people who become unemployed. You must be able to take a job and be registered as a job seeker with Arbetsförmedlingen. You must also be 20 or older. You must have had a certain income from work for at least four months. Long-time a-kassa members can get higher compensation.

Tax on pay and the tax return

The tax your employer deducts every month, before your pay is paid out, is called preliminary tax or A-tax. How much is deducted depends on your tax table. The municipality where you live also affects how high your tax is. For what tax pays for, see The welfare society.

The year after the income year, you submit an income tax return (deklaration) to Skatteverket (the Swedish Tax Agency). Many details, such as pay, are already included. You are responsible for checking that everything is correct and getting mistakes corrected. For the 2025 income year, the last day was 4 May 2026, unless you had an extension. Skatteverket then calculates your final tax. If you paid too much, you get money back. If you paid too little, you get kvarskatt (residual tax).

Working svart (undeclared) means you get pay without any tax being paid on it. This is illegal and can lead to fines or, in serious cases, prison. You also get a lower pension and no a-kassa if you are unemployed.

Personal finances: budget, loans and debts

A budget is a plan for your money. You write down what comes in, such as pay, and what goes out, such as electricity and a bus pass. Count your income after tax. Konsumentverket (the Swedish Consumer Agency) has a free budget calculator online.

When you borrow, you usually pay interest, a cost in percent for borrowing the money. The effective interest rate shows what the loan costs per year, including all fees, so it helps you compare loans. The lender must always do a credit assessment, meaning check that you can pay back. Quick loans, such as SMS loans, can be very expensive.

If you do not pay a bill, you often get a reminder first and then a debt collection demand (inkassokrav). This is a new demand, often with an extra fee. The company can also go straight to Kronofogden (the Swedish Enforcement Authority). You then receive a payment order, and you must pay or object. If you do nothing, Kronofogden decides that you must pay. You are also given a record of non-payment, which stays for three years. It can make it hard to rent a home or borrow money.

After the decision, the company can ask Kronofogden to collect the debt. Kronofogden can then take money from your pay or sell things you own. This is called attachment (utmätning). But you can always keep enough for you and your family to manage.

If your debts would take many years to pay, you can apply to Kronofogden for debt restructuring (skuldsanering). You pay what you can for a period. Afterwards, the debts that were included are gone. All municipalities must offer budget and debt counselling to people with debts who need help. It is free.

See also what the citizenship test contains and how to study for the test.

Words to know

Word	Meaning
Fackförbund, fackförening, facket	Trade union
Kollektivavtal	Collective agreement
Betalningsanmärkning	Record of non-payment