Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure SE-2020-10/559 – measures in Sweden
|Country||Sweden , applies nationwide|
|Time period||Temporary, 01 March 2020 – 30 June 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Anna-Karin Gustafsson (Oxford Research) and Eurofound|
|Measure added||13 April 2020 (updated 07 October 2020)|
In order to mitigate the economic impact of the COVID-19 outbreak for companies, a temporary reduction of employers’ social security contributions has been introduced for the period 1 March to 30 June 2020. To provide equivalent relief to sole traders, a reduction of individual contributions was also introduced. This measure can also be used by companies that receive short-term work allowance, new-start job subsidies and other types of financial support from the central government.
The temporary reduction in employers' social security contributions means that employers are now only obliged to pay the old age pension contribution (ålderspensionsavgift) (10.21%). This reduction applies to up to 30 employees and on that portion of the employee’s wage that does not exceed SEK 25,000 per month. This entails tax relief of up to SEK 5,300 per employee and month. To provide equivalent relief to sole traders, a reduction of individual contributions has also been introduced. The proposal’s cost to public finances are estimated to SEK 33 billion.
The rules came into force on 6 April. But if tax returns were submitted before then, a new one can be submitted to receive the reduction.
As all companies can benefit from the reduction for up to 30 of their employees and the reduction is applied for (almost) automatically, the use of the measure is expected to be widespread.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
Social partners' role in the implementation, monitoring and assessment phase:
No information available.
Confederation of Swedish Enterprises (Svenskt Näringsliv) wants the duration of this measure to be extended in order to prevent a further economic downturn after the COVID-19 crisis.
The Swedish Trade Union Confederation is against this idea. They argue that this measure has been both expensive and ineffective.
Eurofound (2020), Temporary reduction of employers' social security contributions, measure SE-2020-10/559 (measures in Sweden), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SE-2020-10_559.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.