How is parental leave handled in Sweden’s payroll?

Sweden has a generous parental leave system. Parents are entitled to 480 days of paid parental leave when a child is born or adopted. This allowance can be used until the child turns 8. The compensation during parental leave is paid by the Swedish Social Insurance Agency (Försäkringskassa), not directly from the employer’s payroll, but employers need to account for these leaves in their payroll systems.