Paid Time Off

Sweden PTO Compliance: A Guide for Employers

Sweden has one of the most employee-friendly leave systems in the world. Paid vacation and leave policies are governed by national law and collective agreements, making it essential for employers to understand their responsibilities. Here’s what you need to know about PTO compliance and best practices in Sweden.

Sweden PTO Compliance

Understanding PTO Requirements in Sweden

Get familiar with the legal foundations of paid time off in Sweden.

Statutory Vacation Days

Swedish employees are entitled to 25 working days of paid vacation per year, as defined by the Annual Leave Act (Semesterlagen). Vacation is accrued continuously, and employees typically earn around two vacation days per month of employment. Many collective agreements offer even more generous terms.

Sick Leave Regulations

Employees receive sick pay from their employer from day 2 to day 14 (after a qualifying deduction on day 1), typically at 80% of their regular wage. From day 15 onward, Swedish Social Insurance (Försäkringskassan) takes over the payment. A doctor’s certificate is generally required after day 7.

Public Holidays

Sweden recognizes 13 public holidays, but they are not legally guaranteed as paid days off. However, most employers include these holidays as paid time off through collective agreements or internal policies. Common holidays include Midsummer, Christmas, and Easter.

PTO Carryover Rules

Employees can carry over unused vacation days for up to five years, as long as those days are statutory and not used during the current year. This extended carryover helps employees plan long breaks and accommodate special situations.

Sweden PTO Overview

Key Considerations For Employees And Employers

Swedish labor law protects employee leave while expecting employers to manage it with accuracy and transparency. Here's a quick overview:

Employers

Guarantee at least 25 paid vacation days per year
Pay 80% wages during the first 14 days of illness
Follow Försäkringskassan guidelines for extended sick leave
Track vacation and leave balances accurately
Honor carryover rules for up to five years

Employees

Entitled to 25 vacation days annually
May carry unused days up to five years
Receive sick pay from employer and state
Must provide medical proof for longer illnesses
Protected by national law and collective agreements

Swedish PTO laws are employee-focused and governed by national legislation. This information is intended as general guidance only. Please consult legal counsel for advice tailored to your situation.

PTO Management

Best Practices for Managing PTO in Sweden

Keep these recommendations in mind for effective leave management.

Leave Management System
To stay compliant and avoid manual errors, it’s recommended to implement a PTO tracking system that manages vacation accruals, sick leave, and carryover rules. This ensures adherence to Swedish labor law and collective agreements.
Clear PTO Policies
Employees should clearly understand how vacation is accrued, when it can be used, and what happens if it’s unused. Transparent communication around holidays, sick leave, and leave requests supports a smoother process.
Part-Time Considerations
Part-time workers are entitled to pro-rated vacation and leave based on their working hours. Employers must calculate this fairly to remain compliant and maintain workplace trust.

attendance tracking

Why Compliance Matters

Ensuring your company is compliant with Swedish PTO laws isn’t just about following the rules—it’s also about fostering a positive, transparent environment for your employees.

Keep a Clean Record

Failing to follow Sweden’s Annual Leave Act or sick leave procedures can lead to audits, disputes, and penalties. By tracking and managing paid time off accurately, you demonstrate compliance with national standards, reduce legal risks, and ensure your PTO policies are transparent and up to date.

Employee Satisfaction

A reliable and clearly communicated PTO policy makes employees feel respected and supported. When vacation and sick leave are managed fairly, job satisfaction improves, turnover drops, and trust in leadership grows—benefiting both employee well-being and overall performance.

Positive Workspace

Well-managed PTO builds a culture of trust and mutual respect. Employees who feel secure in taking the time off they’ve earned are more engaged, communicative, and productive. A clear PTO system shows your commitment to balance, fairness, and responsible management.

employee attendance

How TrackingTime Can Help

Learn more about how we can help you optimize your PTO policies and ensure compliance with Swedish labor laws.

Effortless Organization

Say goodbye to messy email chains and manual tracking. With a streamlined PTO management system, you can keep all requests and records in one place, making it easy to approve time off and manage employee schedules efficiently.

Quick Approvals – Manage PTO requests fast.
Clear Records – Access all time-off data easily.
Team Sync – Keep schedules aligned effortlessly.

Custom Time-Off Policies

Every company has unique needs, and your PTO policies should reflect that. Customize your time-off rules to match your team’s structure, ensuring fairness and clarity while maintaining flexibility.

Flexible Rules – Tailor policies to your team’s needs.
Clear Guidelines – Keep everyone informed.
Smooth Management – Set rules that work for all.

Real-Time Transparency

Give your employees the confidence to plan their time off without uncertainty. By providing real-time access to balances and request statuses, you create a more transparent and trusting workplace.

Instant Access – Check balances anytime.
Live Updates – Track requests in real time.
Boost Trust – Keep everyone informed.

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FAQ

Frequently Asked Questions

Get answers to all your questions about our service and plans.

How many vacation days are guaranteed by law in Sweden?

Swedish labor law guarantees employees at least 25 paid vacation days per year. These are separate from public holidays and are regulated under the Annual Leave Act.

Is paid vacation mandatory in Sweden?

Yes. All employees in Sweden have the right to 25 days of paid annual leave. This applies regardless of whether the employee works full-time or part-time.

Do public holidays count toward vacation days in Sweden?

No. Public holidays are not included in the statutory 25 paid vacation days. If a holiday falls during vacation, it does not reduce your paid leave balance.

Can unused vacation expire in Sweden?

Yes. Employees in Sweden can carry unused vacation for up to five years. After that, the right to use those days may expire unless otherwise agreed with the employer.

What law governs vacation rules in Sweden?

Vacation rights in Sweden are governed by the Swedish Annual Leave Act (Semesterlagen), which outlines leave duration, accrual, scheduling, and compensation.

Can Swedish employees choose when to take their vacation?

Generally, yes. Employees in Sweden are entitled to take four consecutive weeks off between June and August, unless operational reasons require otherwise.

Do employees accrue vacation during sick leave in Sweden?

Yes. Employees continue to earn vacation during sick leave, parental leave, and other types of qualified absences according to Swedish labor law.

Are part-time employees entitled to 25 vacation days in Sweden?

Yes. The number of vacation days remains the same (25), but the number of paid days depends on how much the employee works and earns during the accrual year.

Is vacation pay separate from salary in Sweden?

Yes. In Sweden, vacation pay includes a supplement of at least 0.43% of monthly salary per vacation day, or is calculated using a 12% rule depending on the employment type.

What happens to unused vacation when leaving a job in Sweden?

When employment ends, any unused paid vacation must be compensated in the final paycheck. This applies to both earned and accrued vacation days.

Are Swedish employers required to track vacation days?

Yes. Employers in Sweden must maintain accurate records of each employee’s earned, used, and remaining vacation days to comply with the Annual Leave Act.

Can employers in Sweden force employees to take vacation?

Yes. Employers can schedule vacation periods, especially during the summer holiday months, but they must consult with employees and respect the right to four consecutive weeks.

Do employers need to pay out vacation pay in advance?

It depends on the agreement. Vacation pay is often paid in advance in Sweden before the holiday begins, especially under collective agreements or union rules.

Can Swedish employers set a limit on carried-over vacation?

Yes. While the legal maximum for carrying over unused vacation is five years, employers can set shorter limits by contract, provided they meet legal obligations and inform staff.

Is written documentation of leave policies required in Sweden?

Yes. Swedish employers must provide written terms of employment, including vacation entitlements, within 7 days of employment starting. This includes collective or company-specific agreements.