PEO Services in Sweden

A co-employment model for companies that want to share the employer relationship in Sweden rather than hand it over entirely. Worth knowing up front: true PEO co-employment is far less established in Sweden than in the US, so we advise honestly on whether PEO or an EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in Sweden

A Professional Employer Organisation works on a co-employment model. You and the PEO partner share the legal employer responsibilities for your Swedish staff: you keep direction and day-to-day control, while the partner administers payroll, income tax, arbetsgivaravgift, and HR compliance under a shared arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle payroll, income tax, arbetsgivaravgift, and HR administration.

02

More direct control

PEO suits companies that want to retain more direct control of the employment relationship than a full EOR arrangement allows. In Sweden, true co-employment is uncommon, so EOR is usually the better fit.

03

Honest recommendation

For most companies hiring in Sweden, EOR is simpler. We advise honestly on whether PEO genuinely fits your structure, or whether EOR serves you better.

How PEO works in Sweden, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and advise honestly on whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted Swedish partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant Swedish employment terms under LAS and the right collective agreement, with the administrative employer functions handled by the partner.

04 — Payroll & compliance

Income tax, arbetsgivaravgift, and statutory filings handled monthly, while you keep day-to-day direction.

What PEO in Sweden costs

As with EOR, two parts: the statutory cost of employment (predictable, but with no minimum wage to check pay against) and the partner service fee.

Employer contribution (arbetsgivaravgift)

31.42% of gross salary, with no ceiling, or the temporary reduced 20.81% rate for eligible 19-23-year-olds (up to SEK 25,000/month), all administered under the shared employer arrangement.

Minimum wage (2026)

No statutory minimum wage. Pay is whatever the applicable sector collective agreement sets, commonly SEK 25,000-28,000/month at entry level.

Income tax (employee)

Municipal income tax averaging around 32%, plus 20% state tax above SEK 643,000/year (skiktgräns, 2026), withheld at source as part of the shared payroll administration.

PEO partner fee

A service fee for the co-employment administration. Under a shared employer arrangement, someone still has to identify the right collective agreement and apply the correct arbetsgivaravgift band. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange Swedish PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Sweden’s employer contribution carries three different bands depending on the employee’s age (31.42% standard, 20.81% for eligible 19-23-year-olds, 10.21% at state pension age), and a co-employment quote has to apply the right one. We benchmark across our vetted network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of placements

Two decades placing and managing employment arrangements across global markets, with the local knowledge that prevents costly Swedish compliance mistakes.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own Swedish AB, as your Swedish presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

The employer duties a Swedish PEO shoulders

Whichever model you use, the underlying Swedish rules are the same. Under a PEO arrangement, the administrative employer functions are handled for you.

Working time, leave & contracts

Compliant Swedish employment contracts, the right collective agreement, and working-time rules (40-hour standard week, statutory overtime caps, minimum 25 days’ annual leave). Income tax and arbetsgivaravgift withheld and filed correctly. Statutory benefits and notice applied properly.

Statutory protections & exits

Statutory notice, probation, and the protections Swedish employees carry under LAS, since dismissal requires saklig grund (objective grounds) rather than at-will termination, all handled under the shared arrangement. The value is the same as with EOR: the compliance is handled by people who do it daily. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

A compliant Swedish employment contract under LAS and the right collective agreement, issued and maintained for you.

Payroll & filings

Monthly payroll run, with income tax and arbetsgivaravgift calculated, withheld, and filed each month.

Statutory benefits

All statutory benefits administered: 25 days’ annual leave, sick pay, parental leave (across its three separate SGI-capped bands), notice.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how PEO co-employment works in Sweden.

What is the difference between PEO and EOR in Sweden?

With an EOR, the partner is the sole legal employer of your Swedish staff. With a PEO, you and the partner share the employer relationship, you keep more direct control, they handle the administration. In Sweden, true co-employment is uncommon, so EOR is the usual route; PEO suits specific structures.

For most companies, EOR is simpler and faster, especially with no Swedish entity. PEO fits when you want to share rather than outsource the employer role, or have a structure that calls for it. We assess your situation and recommend honestly.

It depends on the structure. Some co-employment arrangements assume or work alongside your own Swedish entity. If you have no entity and want none, EOR is usually the cleaner route. We will confirm which applies to you.

The administrative employer functions, payroll, income tax, arbetsgivaravgift, statutory benefits, and statutory filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and Swedish law is met.

The statutory employer cost (31.42% arbetsgivaravgift, or 20.81% for eligible 19-23-year-olds) plus a partner service fee for the co-employment administration. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own Swedish AB, as your Swedish presence develops.

Not sure whether PEO or EOR is right for Sweden?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

Tax and labour data verified July 2026 (Skatteverket, Försäkringskassan, verksamt.se). Figures change; we confirm the current position when we scope your hire.