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-2021-1/1893 – measures in Sweden
|Country||Sweden , applies nationwide|
|Time period||Temporary, 01 January 2021 – 31 March 2023|
|Type||Legislations or other statutory regulations|
Promoting the economic, labour market and social recovery
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
|Author||Anna-Karin Gustafsson (Oxford Research) and Eurofound|
|Measure added||26 April 2021 (updated 30 April 2021)|
Many of the industries with a high share of young workers, such as commerce and hospitality, have been hit particularly hard by the restrictions and behavioral changes that the pandemic entails. The government thus decided to lower payroll taxes for people aged 19-23, in order to support the continued employment as well as new recruitments of young people.
The measure means employers' social security contributions (payroll tax) for people aged 19 to 23 will be reduced during the period January 2021 to March 2023. The original level of 31.42 percent is thereby lowered to 19.73% for this particular age group. The reduction is applicable to employees in the age group earning no more than SEK 25,000 per month (€2,500). For those earning more, the original rate applies.
The reduction was originally planned to take effect from April 2021, but was brought forward to include all of 2021 (and last until April 2023) through an extra amendment budget. The cost of the measure is estimate to SEK 9 billion for 2021-2022, and an additional SEK 1.4 billion for the first quarter of 2023.
No information about the use of the measure is available at this point.
Youth (18-25) in employment
||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Any other form of consultation, institutionalised (as stable working groups or committees) or informal||Any other form of consultation, institutionalised (as stable working groups or committees) or informal|
Social partners' role in the implementation, monitoring and assessment phase:
The social partners were involved thorugh the regular referral round, where legal proposals are shared with a number of organisations (including but not limited to social partner organisations, government agencies, NGOs etc).
The original proposal, where the measure was set to take effect from the second quarter of 2021, received criticism from Confederation of Swedish Enterprise for being too late. But the organisation was otherwise largely in favour of the proposal.
Trade union organisations, such as the Confederation for Professional Employees, argued against the measure, stating that the measure is too costly and that research has proved no or only limited effects on employment can be expected from reducing the payroll tax.
Eurofound (2021), Lowered payroll taxes for young people, measure SE-2021-1/1893 (measures in Sweden), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SE-2021-1_1893.html
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. As winter approaches, preventing and addressing energy poverty becomes a priority. This article summarises the policy responses as reported in Eurofoundâ€™s EU PolicyWatch database from January to September 2022.Article
12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.