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🇸🇪Minimum Wage in Sweden: No Statutory Minimum

Sweden has no statutory national minimum wage and no general legislation on pay levels, only some rules that bear on wage-setting, such as rules against discriminatory pay. Minimum pay is set in collective agreements (kollektivavtal) negotiated between employers’ organisations and trade unions; the Mediation Office says these social partners are responsible for wage formation.1,2

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Statutory national minimum wage
None1
Pay floors set by
Collective agreements (kollektivavtal)1,2
Employees covered by a collective agreement
88% (2023)6
Average gross annual salary, 2024 (Eurostat)
€46,525

How pay floors work instead

Eurofound describes the Swedish system as the Ghent system: employers take part voluntarily, but unions can strike to secure a collective agreement, and a peace clause applies while an agreement runs. Coverage is smaller among small companies, with gaps in sectors such as hospitality, parts of agriculture, platform work, some transport, hair and beauty services and cleaning.3

Under the Co-Determination in the Workplace Act (1976:580), a collective agreement binds the organisation that made it and its members (section 26), and an employer and an employee who are bound by it cannot validly agree anything that conflicts with it (section 27).4

An employer becomes bound by an agreement by joining an employers’ organisation or by signing an affiliated agreement (hängavtal) directly with the union. Signing is voluntary, but an employer must negotiate if a union asks for it.5

The Mediation Office (Medlingsinstitutet) publishes a spreadsheet with a selection of lowest pay levels in collective agreements (updated November 2025); the levels differ between agreements and by position, education and age.2

Sweden reported to the European Commission a collective bargaining coverage rate of 88% for 2023. The Mediation Office puts coverage at 88% of employees aged 18 to 68 in 2025.6,7

The EU minimum wage directive

Sweden is an EU member state. It voted against Directive (EU) 2022/2041 and supported Denmark’s action against it (Case C-19/23); on 11 November 2025 the Court of Justice annulled parts of Article 5, which concerns statutory minimum wages, and dismissed the rest. Sweden implemented the directive by a government ordinance (SFS 2024:919, in force 15 November 2024) that obliges the Mediation Office to report to the Commission. The Commission’s July 2026 report puts Sweden’s collective bargaining coverage above the 80% threshold of Article 4(2).6,8,9,10,11,12

See the full minimum wage ranking across Europe →

Frequently asked questions

Does Sweden have a minimum wage?
Sweden has no statutory national minimum wage. Minimum pay is set in collective agreements (kollektivavtal), which cover 88% of employees (2023, as reported to the European Commission).
How are minimum wages set in Sweden?
Employers’ organisations and trade unions negotiate collective agreements. Employers take part voluntarily, but unions can strike to secure an agreement.
Did Sweden take part in the court case against the EU minimum wage directive?
Sweden supported Denmark’s action against the directive (Case C-19/23). On 11 November 2025 the Court of Justice annulled parts of Article 5, which concern statutory minimum wages, and dismissed the rest of the action.
Does the EU minimum wage directive apply to Sweden?
Yes, Sweden is an EU member state. The directive does not oblige it to introduce a statutory minimum wage where pay is set exclusively by collective agreements (Article 1(4)).

Sources

  1. 1.Minimum wages (earn_minw): reference metadata · Eurostat ·
  2. 2.Lägstalöner · Medlingsinstitutet (Swedish National Mediation Office) ·
  3. 3.Minimum wage in Sweden · Eurofound ·
  4. 4.Lag (1976:580) om medbestämmande i arbetslivet · Sveriges riksdag
  5. 5.Collective agreements for you as an employer · Verksamt.se (Swedish Agency for Economic and Regional Growth and partners) ·
  6. 6.Report on minimum wage protection and the action plans to promote collective bargaining, COM(2026) 388 · European Commission ·
  7. 7.Kollektivavtalstäckning och organisationsgrad · Medlingsinstitutet (Swedish National Mediation Office) ·
  8. 8.Avtalsrörelsen och lönebildningen 2025 · Medlingsinstitutet (Swedish National Mediation Office)
  9. 9.Sverige stödjer Danmarks talan om ogiltigförklaring av minimilönedirektivet · Regeringen (Arbetsmarknadsdepartementet) ·
  10. 10.Judgment of the Court of 11 November 2025, Denmark v Parliament and Council (C-19/23) · Court of Justice of the European Union (EUR-Lex) ·
  11. 11.Förordning (2024:919) om ändring i förordningen (2007:912) med instruktion för Medlingsinstitutet · Svensk författningssamling (Regeringskansliet) ·
  12. 12.Directive (EU) 2022/2041 on adequate minimum wages in the European Union · European Parliament and Council of the EU (EUR-Lex) ·

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