HireCost

Global hiring costs

United States vs Sweden: cost of employing

Side-by-side OECD figures for an average single worker.

  • OECD Taxing Wages 2025 · PwC Tax Summaries · World Bank
  • Updated
  • Reviewed by Alex · How we calculate
Average worker, 2025United StatesSweden
Average wage (local)73,520 USD557,053 SEK
Average wage (USD PPP)$73,520$66,356
Employer SSC8.1%31.4%
Employee SSC7.7%7.0%
Income tax16.7%15.6%
Tax wedge (% of labour cost)30.0%41.1%

What it means for an employer

Hiring at the average wage, an employer in Sweden adds 31.4% on top of gross pay, compared with 8.1% in the United States (OECD model, which counts mandatory contributions such as Social Security, Medicare and federal unemployment tax, but not employer health insurance). That is 23.3 percentage points more. In purchasing-power terms the average Sweden wage is 90% of the US average.

Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.

Frequently asked questions

How much does an employee cost in Sweden?

At the OECD average wage of 557,053 USD, about 79,466 USD a year including 8.1% in mandatory employer on-costs (2025).

What are employer contributions in Sweden?

Employer social security is 31.4% of gross pay at the average wage.

Is it more expensive to employ someone in Sweden or the US?

Statutory on-costs are 8.1% of pay in Sweden vs 8.1% in the US at the average wage; salaries differ too, so compare totals in the country comparison tool.

What is not included?

Voluntary benefits such as private health insurance, bonuses, 13th-month pay where it is contractual, equipment and EOR fees. Add them with the optional fields in the calculator.