The Problem & Market Challenges
Expanding into Sweden presents notable operational and regulatory complexities for global companies. As one of Europe’s most protective labour markets, the country mandates strict employment compliance, and employer social contribution rates can reach up to 31.42% of an employee’s gross salary, significantly increasing workforce costs and administrative pressure. These challenges are even more pronounced when managing Sweden payroll and compliance, statutory contributions, and HR functions across borders.
Establishing a Swedish legal entity can be both time-consuming and capital-intensive. Businesses often face barriers such as entity registration delays, high labour costs, complex tax structures, and collective bargaining agreements that require strict observance. As a result, startups, SMEs, and global enterprises experience delayed market entry and elevated risk.
Key challenges: High cost of living, expensive labour structure, complex payroll administration, and one of the world’s highest tax frameworks.
Solution
Dhi ADT Employer of Record services enable organizations to hire in Sweden without a local entity, reducing onboarding timelines from months to days. We act as your compliant Swedish payroll and HR partner, managing employment contracts, payrolling, statutory benefits, and adherence to Swedish labour regulations—empowering you to focus on scaling while we handle the operational burden.
Our Sweden EOR services provide full-spectrum HR lifecycle support, enabling accurate and compliant payroll processing for distributed teams.
What is an EOR in Sweden?
An Employer of Record (EOR) in Sweden allows international businesses to hire and manage employees in Sweden without setting up their own Swedish legal entity. The EOR becomes the legal employer, managing payroll, HR administration, contracts, and compliance with Swedish labor laws, while you focus on scaling your business.
At Dhi ADT, we deliver Employer of Record services through our own entity, ADT Sweden AB, ensuring a compliant, seamless, and cost-effective hiring solution.
What Happens If My Employer Doesn’t Pay My Salary? I Work for a Swedish Company.
Sweden’s legal framework is strong: even when your employer is an EOR, employment contracts must comply with Swedish law, and the EOR bears the legal employer obligations. If salary isn’t paid, you have rights under the Employment Protection Act and may engage the EOR/employer or authorities to resolve it.
Using a reputable EOR means your payroll and compliance are managed by experts — reducing the risk of non-payment or misclassification.
What Are the Benefits of Using an EOR in Sweden for a Startup?
For startups, using an EOR offers additional advantages:
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Speed to market – You can hire talent rapidly and start operations without entity setup delays.
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Cost control – Lower upfront investment compared to establishing a local entity.
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Risk mitigation – Compliance and administrative burden are handled by the EOR.
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Flexibility – Scale head-count up or down as your product-market fit evolves.
Key EOR Providers in Sweden
Here are some established EOR providers you can research and compare for services in 2026:
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Deel
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Omnipresent
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Oyster HR
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Remote
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Safeguard Global
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Mercans
How Much Does an Employer of Record Cost in Sweden?
EOR pricing in Sweden depends on:
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Employee headcount – More employees mean scaled service fees.
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HR service scope – Whether you require payroll-only support or full HR compliance services.
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Salaries and statutory benefits – Swedish law requires strong employee protections, benefits, and social contributions, which factor into costs.
With Dhi ADT, you receive clear, transparent pricing with no hidden costs, saving you the complexity and expense of setting up a Swedish entity.
How to Choose an EOR in Sweden
Choosing the right EOR partner in Sweden is crucial due to the country’s strict labor protections and tax laws. When selecting an EOR, look for:
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Local expertise – A provider with in-depth knowledge of Swedish employment law.
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Payroll & benefits management – Handling salaries, benefits, social contributions, and pensions.
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Compliance assurance – Ensuring adherence to Swedish labor and tax regulations.
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Local presence – An EOR with its own Swedish entity guarantees faster, more reliable services.
With Dhi, ADT ensures full compliance and efficient employee management in Sweden.
Why Choose an Employer of Record in Sweden?
Sweden is an attractive destination for international expansion due to its skilled workforce, innovation-driven economy, and strong labor protections. Partnering with an EOR in Sweden allows you to:
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Hire employees without opening a Swedish subsidiary.
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Stay compliant with Swedish employment and tax laws.
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Manage payroll, pensions, and benefits seamlessly.
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Expand quickly with reduced setup costs.
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Focus on business growth while we manage HR complexities.
How ADT’s Sweden Employer of Record Service Works
With ADT, we simplify your hiring in Sweden:
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Onboarding – We draft contracts compliant with Swedish labor regulations.
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Payroll & Benefits – We manage wages, taxes, pensions, and mandatory benefits.
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Compliance – We ensure adherence to Swedish labor and tax requirements.
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HR Support – From hiring to exit, we provide end-to-end HR support.
Need an EOR in Another Country?
Looking beyond Sweden? Expanding into multiple countries requires time and resources. With Dhi ADT’s global EOR services, you can hire internationally without the complexity of opening entities.
Where We Provide EOR Services:
Get Started with a Swedish Employer of Record
If you’re planning to hire in Sweden, Dhi ADT’s Employer of Record services provide a fast, compliant, and cost-effective solution.
Contact us today to discuss how we can support your Swedish hiring needs.
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