hej sverige.
ENSVعربي
Start practicing
YOUR CITIZENSHIP STUDY MAP

Labor market and economy

Work, wages, taxes and entrepreneurship

Prepare for the Swedish citizenship civic test with practice questions and explanations about Labor market and economy.

Start practicing

Practice questions and answers

1. Approximately what percentage of employees in Sweden work in the private sector?

  1. 30 percent
  2. 50 percent
  3. 70 percent
  4. 90 percent
Show answer and explanation

70 percent

Approximately 70% of all employees in Sweden work in the private sector (shops, factories, service companies, etc.). The remaining 30% work in the public sector.

2. What is the name of the umbrella organization that represents private employers in Sweden?

  1. LO
  2. TCO
  3. Swedish Industry
  4. SACO
Show answer and explanation

Swedish Industry

Svenskt Näringsliv is the organization that represents private employers in Sweden. The equivalent for state employers is the Swedish Employment Agency, and for municipalities and regions SKR.

3. Which central trade union organization organizes graduates (with university degrees) in Sweden?

  1. LO
  2. TCO
  3. SACO
  4. SKR
Show answer and explanation

SACO

SACO (Sweden's Central Organization of Graduates) organizes graduates with university education. LO organizes workers and TCO organizes civil servants.

4. How are wages determined in Sweden?

  1. The state determines all salaries via the Riksdag
  2. The EU sets minimum wages for all countries
  3. Through negotiations (collective agreements) between employers and trade unions
  4. Everyone negotiates individually with their employer without assistance
Show answer and explanation

Through negotiations (collective agreements) between employers and trade unions

In Sweden, wages and working conditions are determined via collective agreements - negotiations between employers and trade unions. The state does not normally get involved in wage formation.

5. What is the maximum length of time a probationary employment can last in Sweden?

  1. 3 months
  2. 4 months
  3. 6 months
  4. 12 months
Show answer and explanation

6 months

A trial employment may last a maximum of 6 months. During the trial period, the employment can be terminated without the employer having to state a reason.

6. What does the LAS (Employment Protection Act) mean?

  1. That all jobs in Sweden are government jobs
  2. That employers are protected against strikes
  3. That employees are protected against arbitrary dismissals – requires a factual basis
  4. That wages are regulated by the state
Show answer and explanation

That employees are protected against arbitrary dismissals – requires a factual basis

LAS (1982) protects workers from arbitrary dismissal. The employer must have a factual basis – either personal reasons (mismanagement) or lack of work. The last in, first out rule applies to drawdowns.

7. How many vacation days is an employee generally entitled to per year under Sweden's Annual Leave Act?

  1. 15 days
  2. 20 days
  3. 25 days
  4. 30 days
Show answer and explanation

25 days

The Annual Leave Act generally gives employees 25 vacation days per year. The number of paid days depends in part on how much leave the employee has earned. Collective agreements may provide more days.

8. Approximately how much is the municipal income tax in Sweden?

  1. About 15–20 percent
  2. About 30–35 percent
  3. About 40–45 percent
  4. About 50–55 percent
Show answer and explanation

About 30–35 percent

The municipal income tax in Sweden is typically 30–35% of the salary. It varies slightly depending on where you live and finance school, care and social care.

9. What are the VAT rates in Sweden?

  1. Only 25% on everything
  2. 25% normal rate, 12% on food and hotels, 6% on books and public transport
  3. 20% normal rate, 10% on food, 5% on books
  4. 30% normal rate, 15% on food
Show answer and explanation

25% normal rate, 12% on food and hotels, 6% on books and public transport

Sweden has three VAT rates: 25% (normal rate), 12% (food, hotels, culture) and 6% (books, newspapers, public transport, concerts). VAT is also called value added tax (VAT).

10. What must you have done to be able to get social security?

  1. Just register as unemployed
  2. Have worked for at least 6 months and be an active job seeker
  3. Worked for 10 years
  4. Have set aside money in a pension fund
Show answer and explanation

Have worked for at least 6 months and be an active job seeker

For social security, it is required that you have worked for at least 6 months (at least 80 hours/month) and are actively looking for work. You have to accept offers of suitable jobs.

11. What does the Swedish Enforcement Agency do?

  1. Helping you find a job
  2. Pays out parental allowance
  3. Collects debts and handles debt restructuring for over-indebted people
  4. Examines the work of state authorities
Show answer and explanation

Collects debts and handles debt restructuring for over-indebted people

The enforcement agency collects debts on behalf of creditors and can help people with unmanageable debts with debt consolidation (an opportunity to have debts written off).

12. How much share capital is required to start a limited company in Sweden?

  1. SEK 5,000
  2. SEK 25,000
  3. SEK 100,000
  4. SEK 500,000
Show answer and explanation

SEK 25,000

To start a private limited company (AB) in Sweden, SEK 25,000 in share capital is required. The limited company is registered with the Swedish Companies Registration Office.

13. With which authority do you register a new company in Sweden?

  1. Tax Agency
  2. The employment agency
  3. The Swedish Companies Registration Office
  4. Ministry of Commerce
Show answer and explanation

The Swedish Companies Registration Office

New companies are registered with the Swedish Companies Registration Office. You also register with the Swedish Tax Agency for VAT and F-tax (tax for self-employed persons).

14. How much is the employer's contribution in Sweden (approximately)?

  1. About 10 percent of the salary
  2. About 20 percent of the salary
  3. About 31.4 percent of the salary
  4. About 50 percent of the salary
Show answer and explanation

About 31.4 percent of the salary

Employer contributions in Sweden are approximately 31.4% of the gross salary. It is money the employer pays in addition to the salary to e.g. pension, health insurance and parental insurance.

15. Is there a statutory minimum wage in Sweden?

  1. Yes, the Riksdag determines it every year
  2. Yes, but only for the public sector
  3. No, wages are set via collective agreements by the social partners
  4. Yes, the EU determines the minimum wage
Show answer and explanation

No, wages are set via collective agreements by the social partners

Sweden has no statutory minimum wage. Instead, minimum wages are set in the collective agreements for each industry. It is the Swedish model – the parties decide, not the politicians.

More topics to practise