Insights & news from Revea
Here you will find news and insights about us, the industry and the wider economy.
Posting Workers to Sweden – Payroll, Working Time Records and Employer Obligations
Posting workers to Sweden means that employees of a foreign employer temporarily perform work on Swedish territory. From an operational perspective, it is crucial to understand that payroll processes must comply with Swedish law throughout the entire posting period.
This applies in particular to:
- payroll calculation and processing,
- working time records,
- reporting and data archiving,
- consistency of documentation for inspection purposes.
Remuneration of Posted Workers in Sweden
One of the employer's fundamental obligations is to ensure that the posted worker's remuneration complies with Swedish regulations.
In practice, this means taking into account:
- working time and rest period standards,
- minimum pay conditions,
- sector-specific allowances and benefits arising from the nature of the work.
Sweden does not have a single statutory minimum wage. In many industries, pay levels and supplements are set by collective agreements (kollektivavtal). For payroll purposes, this means that pay must be correctly reconciled with the employment contract, actual hours worked and the payroll register.
Working Time Records in Sweden – What Employers Must Maintain
Working time records are one of the most frequently inspected areas when posting workers to Sweden.
Under applicable regulations:
- standard working time is 40 hours per week,
- overtime is an exception and subject to limitations,
- working time must be recorded in a transparent and verifiable manner.
The most common practical issues include:
- manual timekeeping records,
- lack of hour-approval procedures,
- discrepancies between time records and payroll.
With a larger workforce, even minor errors in time records can lead to retrospective corrections and increased inspection risk.
Payroll When Posting Workers to Sweden
Processing payroll for workers posted to Sweden is more complex than standard domestic payroll. It requires, among other things:
- calculating pay based on actual hours worked,
- accounting for allowances and changes during the pay period,
- preparing corrections in the event of errors or changes to working conditions.
The greater the number of posted workers, the more important it becomes to have:
- automated processes,
- a single source of data,
- quality control of payroll both before and after salary calculation.
Documentation and Reporting When Posting to Sweden
An employer posting workers to Sweden should maintain complete and well-organised documentation covering, among other things:
- payroll registers,
- working time records,
- terms and conditions of employment,
- posting periods.
This documentation must be:
- consistent,
- up to date,
- available in the event of an inspection.
Incomplete documentation or inconsistent data are among the most common causes of problems when posting workers to Sweden.
Common Mistakes When Posting a Large Number of Workers
Companies posting workers to Sweden most commonly struggle with:
- lack of a consistent payroll system,
- manual processes that do not scale with the number of workers,
- frequent retrospective corrections,
- data discrepancies between different countries.
These issues grow in proportion to the scale of posting and generate additional operational costs.
Why Organised Payroll is Critical
For companies posting a large number of workers to Sweden, payroll ceases to be purely an administrative function. It becomes an element of:
- risk management,
- regulatory compliance,
- cost control,
- operational stability.
Accurate working time records, correct payroll processing and complete documentation are the foundation of safe, long-term worker posting to Sweden.
Summary
Posting workers to Sweden requires far more from an employer than one-off formalities at the start of a project. In practice, correct payroll processing, accurate working time records and consistent documentation are what determine whether operations run smoothly.
A lack of organised HR and payroll processes quickly leads to corrections, increased inspection risk and difficulties in managing costs. On the other hand, a well-structured payroll system – based on a single data source and automated processes – significantly reduces operational risk and provides a solid foundation for cross-border business.
For companies operating internationally, posting workers to Sweden should be treated as an ongoing operational process that requires continuous monitoring and regular updating – not a one-off administrative task.
Do you need support with payroll or documentation for posted workers? Contact us at Revea – we help companies navigate Swedish regulations and set up compliant payroll processes.
Important Things to Consider Before the Annual Accounts
The annual accounts are a central part of closing a financial year, and it is crucial to complete them correctly to avoid unnecessary issues and ensure that the company meets its obligations. Here are some key points to keep in mind:
1. Reconcile the Accounting Records
Before starting the year-end closing, ensure that all accounting records are in order. Verify that all business transactions have been recorded and that there are no unclear or missing entries.
2. Correct Any Errors
Review and rectify any mistakes in the accounting records. Check that balances in items such as accounts receivable and payable match reality.
3. Reconcile Balance Sheet Accounts
Ensure that the balance sheet accounts are accurate by comparing them with supporting documents such as bank statements, receivables, and payables. Any discrepancies must be resolved before finalizing the accounts.
4. Inventory the Stock
If your company holds inventory, it is important to perform a stocktake at the time of closing the books. This ensures that the inventory value in the balance sheet is correct and that any necessary adjustments are made.
5. Prepare the Annual Report
If your company is a limited company, an annual report is required to meet statutory requirements. Ensure that the report is clear, accurate, and provides a true and fair view of the company’s financial position.
6. Seek Assistance if Needed
The year-end closing process can be complex, especially for larger companies or if there have been many transactions during the year. A qualified accountant or auditor can help ensure everything is done correctly from the start.
Proper preparation for the year-end closing not only saves time but also reduces the risk of errors and subsequent adjustments. If you need support with your annual accounts, do not hesitate to contact us at Revea. We assist with everything from accounting and auditing to tax advice and financial planning.
Get in touch, and we’ll review your situation together!
New tax and pension rules 2025: What you need to know
In 2025, several changes will come into effect that affect taxes for both wage earners and pensioners. The new rules are designed to create economic incentives for work and improve financial conditions for older people. Here are the key updates:
Tax Relief for Work and Pension
1. Enhanced Earned Income Tax Credit
From 2025, the earned income tax credit and the increased basic deduction will no longer decrease with higher incomes, resulting in lower marginal tax for high-income earners.
2. Lower Tax for Older Employees
Wage earners who turn 67 during the income year will pay only 8% tax on employment income up to 342,000 SEK, including the increased basic deduction and the enhanced tax credit.
3. Increased Basic Deduction for Pensioners
Pensioners aged 67 or older will pay significantly lower taxes. The difference in net income may amount to about 1,900 SEK per month compared to younger pensioners, thanks to the higher basic deduction.
Economic Benefits of Working Longer
Continuing to work after age 66 offers several benefits:
- Higher Pension
Every additional 10,000 SEK in annual income increases the future pension by about 110 SEK per year for life. - Lower Employer Contributions
Employers pay only the age pension fee (10.21%) for employees who turn 67, compared to 31.42% for younger workers.
Tax on Pension and Combined Income
Combining pension with work provides a more favorable tax outcome, especially after age 67. However, if the income is high, state income tax may apply. To avoid this, you can:
- Reduce the Proportion of Pension Withdrawals
Withdrawing less of your public pension reduces the risk of exceeding the threshold for state income tax. - Use the Tax Agency’s Tools
Run a preliminary tax calculation to optimize the balance between salary and pension.
Key Thresholds for 2025
- State Income Tax
A 20% tax is levied on taxable income above 625,800 SEK, regardless of age. - Earning Cap for Pension Rights
The maximum pensionable income is 604,500 SEK.
Plan for a Better Pension
Working longer and delaying pension withdrawals offer significant financial benefits through both a higher pension and lower taxes. Want to know how your situation will be affected? Contact Revea for advice on accounting, tax, and pension!
Have questions about how the new rules affect you? Get in touch with Revea – we’re here to help you navigate financial matters!
Welcome to Revea!
Enter Redvisning has now become part of Revea — a full-service agency with the same personal service, the same contact persons and the same services as before. The only thing that is new is the name and that we now have even more colleagues to collaborate with.
With us, you will receive continued help with everything from accounting and financial statements to payroll management, auditing and consulting.
Do you have questions or want to get in touch with us? Welcome to hear from you — we are here for you just as usual.
You can find us at Gamla Brogatan 32 in Stockholm
Feel free to contact us via contact form or call us directly at the same number as before, 08-678 18 40.