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Don't you get an allowance, i.e. no tax on the first few thousand?

Only for the first $1000.

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In round figures, it looks like if I wanted to employ someone in Sweden and pay him $300 per week I'd have to actually shell out $400 per week total.

Right on. And that's provided the union doesn't get into it. If it does, you'll have to pay even more.

And we have 25% VAT