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Payroll for Swedish Tech Teams

Run salaries, benefits, and pensions with GEOR—your local payroll partner in Sweden, even without a local office.

BBG
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Trusted Insight
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Adoppler

IT payroll with Swedish precision

GEOR delivers accurate and consistent payroll for startups and scaleups building dev teams across Sweden.

  • Onboarding in 7 days
    Get vetted engineers and developers—ready to integrate fast.
  • Payroll done right
    Receive accurate calculations, timely filings, and clear alignment with Swedish employment frameworks.
  • National legal alignment
    We manage regional pay scales, employment terms, and sector-wide standards with precision.
  • Secure IP and data handling
    Built-in protection for high-value technology assets.
  • Localized benefits, thoughtfully managed
    Precise pension and insurance contributions, plus smart add-ons like wellness perks, equity, and mobility support.
  • Grows with your team
    Flexible, commitment-free setup that grows with your team—on your terms.

Sweden

Leading hub for software, AI, and clean tech.
Startups and public programs aligned around ethical innovation.
Clear labor laws and strong worker protections.
GDP

SEK 6.4 trillion

Language

Swedish (English widely spoken)

Currency

SEK (kr)

Software developer’s salary range:

SEK 360k–920k/year

Payroll levies for tech employers

A-skatt (Income tax)

Municipal income rates: Approximately 32%, depending on the employee’s registered municipality.
State surcharge: An additional 20% on income above SEK 613,900/year (2025).

Employer social contributions (Arbetsgivaravgifter)

31.42% of gross salary—covering pensions, insurance, and public welfare.

F-skatt for self-employed

Corporate rate of 20.6%, plus dividend charges between 20–30%.

Reporting

Employers must report salaries and contribution breakdowns monthly to Skatteverket.

Ready to pay a developer in Sweden?

We’ll take care of every step.

Labor law snapshot

Payroll cycle

Monthly (standard in tech)

Wage

No national minimum wage.
SEK 35,600/month minimum required for work permit (as of 2025).

Overtime

Regulated by contract or collective bargaining agreement (CBA).
Often compensated with pay or additional leave.

Payslip

Lönespecifikation (mandatory salary breakdown with deductions and benefits).

Baseline employee benefits

  • Public and occupational pension plans (4.5%–30% employer contribution)
  • 25 days paid vacation (minimum by law)
  • Up to 480 days paid parental leave

Optional perks:

  • private health insurance,
  • wellness and commuter stipends,
  • home office support

Payroll in Sweden

To run payroll effectively in Sweden, tech companies need clear role definitions, accurate salary structures, and a working knowledge of local obligations.

Tech worker classification

Employees and self-employed professionals in Sweden

Understanding the legal distinction between employees and self-employed professionals (F-skatt) is critical for tech companies operating in Sweden. Incorrect classification may result in extra costs and legal complications over time.

Employees (Anställda)
Definition
Hired under a formal employment contract, either indefinite (tillsvidareanställning) or fixed-term (tidsbegränsad anställning). Employees are fully covered by national labor law and collective agreements.
Key rights and benefits
  • 25 days paid vacation (minimum)
  • Up to 480 days of paid parental leave
  • Sick pay (first 14 days), then Försäkringskassan
  • Occupational pension contributions
  • Notice period and dismissal protection
  • Optional perks: wellness allowance, commuter benefits

Job duties
Employees are integrated into the organization and follow employer-set schedules, tools, and methods. Work is subordinate in nature.
Common roles
​Software Engineers, Product Managers, Data Scientists, UX Designers.
Self-employed professionals (Egenföretagare/ Enskild firma)
Definition
Registered as independent businesses. May operate as a sole proprietorship (enskild firma) or a limited company (aktiebolag, AB). Work is performed independently—outside company hierarchy and without subordination.
F-skatt registration
Self-employed professionals must register for F-skatt. They are responsible for issuing invoices, covering their own income reporting, VAT (if applicable), social charges, and arranging business insurance.
Common roles
Freelance Developers, AI Specialists, Interim CTOs, DevOps Consultants, UX Contractors
Legal caution
If the individual works under conditions similar to employment—fixed hours, company tools, direct oversight—they may be reclassified by Skatteverket as an employee. This can result in retroactive employer responsibilities, including unpaid contributions and formal employment obligations.
Classification of remote self-employed staff

Worker classification in Sweden is governed by Skatteverket (Swedish Tax Agency). Сompanies must correctly distinguish between employees and self-employed individuals—especially when hiring remote tech talent. In Sweden, classification is based on working relationships, not physical location.

What determines legal status?

Self-employed contractors (F-skatt) may be reclassified as employees if:

  • They follow fixed working hours set by the company
  • They use company-provided tools and infrastructure
  • Their work is supervised or directed by internal staff
  • They are economically dependent on a single client

If these conditions apply, the contractor is likely a de facto employee, triggering retroactive employer taxes and obligations

Risks for remote IT teams

Even remote developers, DevOps, and tech leads can fall into employee classification if:

  • They work full-time for a single client
  • They report to internal managers
  • Their schedule or work methods are controlled
  • They are integrated into daily operations
Remote work standards

Companies hiring remote or hybrid tech professionals in Sweden must comply with labor law, fiscal regulations, and health and safety obligations—regardless of work location.

Right to work

Employees must hold valid Swedish residency and work rights. Work permit holders must remain employed to retain their status.

Payroll implications

Remote setups do not exempt employers from obligations.

Company obligations
Equipment and expenses
No legal requirement to cover home office costs, but many companies offer allowances for internet, desks, chairs, or monitors.
Health and safety
Businesses are responsible for maintaining safe remote work environments. Risk assessments and ergonomic practices are advised under the Work Environment Act.
Data protection and GDPR
Workforce responsibilities include:
  • Safe digital environments
  • Clear expense policies
  • Transparent data handling
Cross-border data transfer
If data is accessed or stored outside the EU/EEA (e.g., by remote teams or third-party services), employers must implement appropriate safeguards under GDPR (e.g., SCCs or adequacy decisions).
Equity compensation in Sweden

Offering stock options or Restricted Stock Units (RSUs) is possible in Sweden—but requires precise legal and payroll structuring. There are no Enterprise Management Incentive (EMI)-equivalent schemes available.

Stock Options and RSUs in Sweden

Swedish tech employers may offer stock options or Restricted Stock Units (RSUs) as part of their compensation strategy. While equity is permitted, it must follow local tax and reporting rules.

Reporting requirements
All grants must be reported through AGI—the monthly payroll declaration system. This applies even to equity issued by foreign parent companies. The value of vested options or RSUs is treated as taxable income.
Qualified options
Under Chapter 11a of the Swedish Income Tax Act, qualifying startups may issue options taxed at a flat 30% capital gains rate. Eligibility is limited to companies with fewer than 50 employees and annual turnover below 180 MSEK.
Unqualified options and RSUs
Most equity—especially RSUs—is taxed as salary at vesting or exercise. Employers are responsible for 31.42% social contributions on the equity’s value.
Cross-border risks
Equity granted to remote workers in Sweden by foreign entities may trigger dual reporting obligations and complex withholding requirements.
Payslip (Lönespecifikation)

Providing a payslip is mandatory under national labor law. All employees must receive one—on or before payday—in paper or digital format.

What a lönespecifikation must include:

  • Gross salary
  • Net salary after all mandatory withholdings
  • Itemized breakdown: income deductions, social charges, and pension contributions
  • Pay period dates
  • Paid vacation balance (if applicable)
  • Employer and employee information
Collective bargaining agreements (CBAs) in Sweden

CBAs are binding frameworks negotiated between trade unions and employer organizations, defining salaries, benefits, and working conditions at scale. CBAs may override default labor laws with more generous terms.

Key areas covered by CBAs:

  • Minimum salaries by role/experience
  • Overtime compensation rules
  • Working hour limits
  • Annual leave and sick pay structure
  • Pension and insurance obligations
  • Layoff and redundancy procedures

Many tech firms follow industry CBAs, which set minimum pay, leave, and pension terms. While not mandatory, they help maintain clarity, reduce disputes, and support competitive hiring.

Challenges of managing payroll in Sweden

Running payroll for software developers in Sweden requires accuracy, local expertise, and alignment with complex employment regulations—especially in remote and cross-border setups.

Control cost

Wage setting challenges

Setting market-aligned pay requires benchmarking and awareness of union agreements.

Contribution management

Firms must calculate and file 31.42% social charges and optional occupational pensions—errors can trigger fines.

Streamlining remote onboarding

Employee vs. contractor classification

Misclassifying F-skatt freelancers may result in reclassification by Skatteverket and retroactive employer obligations.

Adjusting while expanding

Complex leave rules

Vacation, sick leave, and parental pay involve multiple systems—from company-funded sick pay to Försäkringskassan claims.

Salary statement format

Lönespecifikation must show detailed tax, benefit, and deduction info—mistakes break legal obligations.

Unprotected payroll data

Data security and IP protection

Without clear clauses, remote engineers handling core code may retain IP or expose confidential data.

Remote work fiscal risks

Regional income rates, home-office policies, and national reporting rules may differ—particularly for distributed or hybrid setups.

​​Talent retention

Specialists in Sweden expect timely pay, transparent benefits, and respectful HR—payroll issues damage trust and retention.

One payroll partner. Full compliance.

Why GEOR is the most trusted payroll company in Sweden’s IT sector:

Operational hiring framework

We assist with employer registration in Skatteverket and manage A-skatt, social contributions, and pension declarations—ensuring every payroll cycle is complete, accurate, and timely.

Worker classification

We help you correctly classify employees and F-skatt contractors—minimizing reclassification risks and aligning with Sweden’s employment law.

Full-cycle payroll

From gross-to-net calculations and 31.42% contribution handling to digital payslips (lönespecifikation) and monthly income reporting to Skatteverket.

Equity and compensation reporting

We guide reporting of qualified options, RSUs, and cross-border grants—ensuring alignment with Swedish Income Tax Act (IL) and Skatteverket guidance.

Organizational benefits and public obligations

We support public and occupational pensions (ITP), private insurance, wellness stipends, and commuter perks—matching tech talent expectations.

Data protection

Your payroll data is protected with GDPR-compliant protocols, Dataskyddslagen alignment, and encrypted infrastructure that meets national standards.

Made for high-growth tech companies

Move forward with precision—guided by our deep expertise in Sweden’s innovation-driven sectors.

96%
reduction in hiring time.
40%
savings in HR and operational costs.
4x
faster market entry.
92%
employee retention rate.
Simple, transparent pricing

Our basic package includes onboarding, monthly payroll, and all statutory contributions—built for startups and lean tech teams.

Basic
  • Onboarding within 7 days
  • Payroll processing
  • Pension, social fees, and reporting
$499

per employee/ month.
No hidden fees or extra charges.

Sweden’s most reliable payroll

From first hire to global scale, every tech employee is paid on time, accurately, and in line with Swedish payroll and employment standards.

Contact us_Tamuna

Client Feedback

Brad Weatherly
Brad Weatherly
Executive Vice President
Sapience

GEOR has a very unique platform that they leverage to qualify, score, and predict success with candidates. I found it very helpful within the hiring process.There making changes and revisions to their overall platform. I don’t see anything that hasn’t worked well.

JJ Garofalo
JJ Garofalo
Chief Executive Officer
Legal Resources

They did a great job! Plan to use them in the future for more hiring. I like how they ask a lot of questions about what we needed, and then followed up quickly with results.

Victor Fei
Victor Fei
Founder & CEO
Ormi Labs, Inc.

We’ve been really impressed with the temporary labor services they’ve offered. Thanks to them, we were able to secure contracts with top blockchain developers and DEFI projects.

Stephen Smith
Stephen Smith
Co-Founder and CEO
NOCD

Everything was smooth, each week was full pipeline in order to conduct interviews non-stop. We are very grateful to the team that worked with us, and we wish the same results in other projects.

Aaron Larson
CEO
Midwest Evaluation and Research

I was surprised at how quickly two recruits, sourced in just a few weeks, delivered an MVP. The team did an excellent job finding the perfect candidates for the job.

Alexis Bogan
Alexis Bogan
Manager
Calicraft

With a mission to make the world a kinder place, Calicraft relies on GEOR’s temporary workforce solutions to streamline their human resources operations and foster a supportive work environment.

Evan jacob
Evan Jacob
Product Manager
Stripe

Working with GEOR labor temp agency to develop and integrate software solutions for Stripe has been an absolute game-changer for our business. GEOR proved to be the ideal choice for this task.

Greg Tearne
Greg Tearne
Chief Executive Officer
Altapac Group

They go above and beyond with their service delivery. My initial expectations have not only been met but exceeded to a level I didn’t think possible.

What makes GEOR different

A smarter approach to payroll in Sweden. GEOR’s edge in Sweden’s tech-driven landscape.

Feature GEOR Remote Multiplier Lano
Compliance focus Local HR-led, Swedish law expertise Global reach, limited local depth Platform-led, relies on partners Basic compliance, limited local support
Payroll flexibility Tailored to tech teams in Sweden Centralized, moderate adaptability Standardized global flows Less adaptable to Swedish frameworks
Industry expertise IT-specialized General remote-first model Broad global scope, not tech-focused No sector focus
Support Dedicated HR and legal support Support via global team 24/7 support, not always HR-specific Ticket-based, slower response

Payroll that earns your team’s trust

Choose GEOR, and payroll stops being a worry—it becomes your quiet advantage. Your engineers are paid on time. Their benefits make sense. Their contracts hold up under scrutiny. We handle every tax, pension, and reporting detail with the care Sweden’s regulation demands—so you can focus on progress, not paperwork.

GEOR

Care for your team effortlessly.

Run payroll in Sweden the way it’s meant to be.

FAQs

What makes payroll processing in Sweden unique?

Employers must report salaries, contributions, and benefits monthly to Skatteverket through the individual statement (AGI). In tech, collective agreements (CBAs) often shape pay structures, pension schemes, and leave entitlements.

Why is GEOR more reliable than automated payroll platforms?

We combine tech automation with expert HR and legal support—delivering clarity, accuracy, and peace of mind.

Can I run payroll in Sweden without a local company?

Yes. As your Employer of Record, GEOR handles contracts, compensation, and employment setup—so you can build your team in Sweden from day one.

Can GEOR support payroll in Sweden for international companies?

Yes. We ensure your workforce in Sweden is fully compliant with local law—regardless of where your HQ is based.

What salary deductions and contributions does GEOR manage in Sweden?

We manage A-skatt (income tax), social fees, pensions, sick pay, and vacation allowances.

Can a Swedish payroll company support equity for tech staff?

Yes. We help structure and report stock options, RSUs, and performance bonuses in line with national tax rules.

Do you support remote tech teams in Sweden?

Yes. We manage payroll for engineers in Sweden—whether remote, hybrid, or on-site—with clear legal structure and accurate contributions.

Do I need my own HR department to run payroll in Sweden?

No. We manage everything—from onboarding to benefits—so you don’t need in-house HR.

Is payroll data safe with GEOR in Sweden?

Yes. We meet GDPR and ISO 27001 standards, with encrypted systems and strict access controls.

Can GEOR run payroll for both employees and contractors in Sweden?

Absolutely. We classify and pay both groups correctly—keeping you compliant with Skatteverket.

How do you classify software employees in Sweden?

We assess each role according to national employment law—distinguishing between employees (anställda), independent contractors (egenföretagare), and sole proprietors (enskild firma).

How are self-employed tech professionals classified in Sweden?

Self-employed workers (egenföretagare) operate either as sole proprietors (enskild firma) or through limited companies (aktiebolag, AB). They must register for F-skatt, handle their own taxes, social contributions, and business insurance.

How are payslips (lönespecifikationer) delivered?

GEOR issues secure, digital payslips with full breakdowns—delivered to employees on or before payday.

Which companies offer tech payroll services in Sweden?

GEOR is a global Employer of Record, and is trusted by tech companies in Sweden for fast onboarding, deep IT sector knowledge, and full legal alignment.

Explore compliant hiring in Sweden

GEOR supports both employees and contractors—offering structured, compliant solutions for every growth stage.

Beyond payroll: the Swedish EOR
Scale with clarity. Our EOR model streamlines hiring, reinforces operational consistency, and supports tech teams with reliable HR support.
PEO in Sweden: your co-employer
Already have a legal entity? GEOR’s Professional Employer Organization supports your in-country operations—handling salaries, contracts, and benefits with precision.