Monthly Payroll Cycle in Sweden – What Happens When.

Gustaf Adolfs Torg

Payroll in Sweden follows a strict monthly rhythm — and staying on track is essential. Whether you’re handling payroll in-house or outsourcing, knowing exactly what happens when will help you stay compliant, avoid penalties, and keep employees happy.

Here’s a breakdown of the monthly payroll cycle in Sweden — and why timing matters more than you think.

Step 1: Time Reporting and Absence Registration

Timing: Days 1–5
Employees submit time reports for the previous month, including:

  • Worked hours

  • Overtime

  • Sick leave or vacation

  • Any unpaid absences or parental leave

Accurate and timely reporting is critical — this data forms the foundation of each payroll run.

Step 2: Salary Calculations and Deductions

Timing: Days 5–10
Once time data is collected, payroll is calculated. This includes:

  • Gross salary

  • Vacation pay

  • Sick pay or parental leave adjustments

  • Tax deductions and social security fees

  • Benefits, car allowances, or lunch deductions

This stage must follow applicable tax tables, labor laws, and any collective agreements.

Step 3: Payslip Generation and Distribution

Timing: Days 10–20 (varies)
Payslips must be generated and delivered before payday. Each payslip should clearly state:

  • Gross and net salary

  • All deductions

  • Period covered

  • Payment date and employer info

Letting the employees have their payslips within a service they already use — like Kivra — makes it easy to access and store securely. Payslips will always follow the employee as long as they have a Kivra account, even if they change jobs.

Step 4: Salary Payment

Timing: Typically around the 25th
Salaries are paid out to employees' bank accounts based on the agreed payday. In Sweden, the 25th is considered the standard, and we recommend including this date in all employment contracts. The reason is practical: most bills are due between the 28th and 30th — meaning salaries must be received before that window to ensure employees can pay their obligations on time.

Step 5: Tax Reporting and Payment to Skatteverket

Timing: By the 12th of the following month
Employers must submit a PAYE tax declaration (arbetsgivardeklaration) to the Swedish Tax Agency. This includes:

  • Employee salary and tax data

  • Withheld income tax

  • Employer social contributions (around 31.42%)

In addition to reporting, the total amount of tax must be transferred to the employer’s Skattekonto. We provide the correct OCR number and account details to ensure payment is matched and processed correctly by the tax authority.

Optional: Reconciliation and Archiving

After the payroll run, it’s good practice to:

  • Reconcile salary accounts

  • Store reports and payslips securely

  • Confirm that all taxes and fees are paid

  • Save records according to GDPR and Swedish accounting laws

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Conclusion: Timing Is Everything

The Swedish payroll cycle is precise and regulated. Missing a step or deadline can result in fines — or frustrated employees. By sticking to a clear monthly routine and using smart tools, you ensure compliance and build long-term trust.

Need a partner that understands the full payroll cycle — and keeps you ahead of deadlines?
We’ll take care of every step, from time reports to tax payments, with the tools and expertise to keep you in control.




Before you click away, let me leave you with something uniquely Swedish.

This is Gustav Adolfs torg in Gothenburg – a historic square named after King Gustavus Adolphus, who founded the city in 1621.
The square reflects the king’s vision of structured planning, as Gothenburg was laid out with military precision to become Sweden’s gateway to the West.
At its center stands a statue of the king, pointing toward the land he ordered to be built – a symbol of purpose, rhythm, and order.

Several Swedish cities have squares named Gustav Adolfs torg, including Stockholm, Malmö, Helsingborg, Sundsvall, and Kristinehamn – a reminder of the king’s lasting legacy across the country.

💡 Fun fact:
There are over 30 statues of Gustavus Adolphus in Sweden and abroad. The most famous is here in Gothenburg, cast in 1854, but you’ll also find monuments in Stockholm, Uppsala, and even in cities like Tartu (Estonia) and Lützen (Germany), where the king fell in battle during the Thirty Years’ War.

And just like payroll in Sweden – which relies on predictability, deadlines, and order – these squares and statues remind us that structure leaves a legacy.

Gustaf Adolf