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.

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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.

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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.

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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.

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    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.

    1

    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.

    2

    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.

    3

    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.

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    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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