Sweden: A Guide to Prevent Collapse During Coronavirus

Emily Kuhnert April 07, 2020
Woods in Sweden
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We have gathered information on what measures you can take as an employer in Sweden to help preserve your employees while keeping your business intact. As more information comes in, we will update this post.

If you have any questions on the impact of Coronavirus on labor laws, visit our Linkedin AMA post and leave us your questions in the comment section and we will reply.

[AMA] Impact of Coronavirus on Labor Laws

Updated: April 7, 2020 

Short Term Allowance– As of April 7, 2020, companies will be able to apply for short term allowance. The government will assist in shortening the employee’s working hours and  paying employee wages.  This sort of financial assistance has never existed in Sweden before, and we expect more information to follow.  This allowance will be in effect for 2020 and employers will be able to receive assistance retroactive to March 16, 2020.  Under this aid, at least 70% of the company’s work force must agree to shortened working hours.  

With a ceiling of 44,000 SEK, the time and salary reduction is as follows:

Level 1:

Reduced working hours  -20%
Reduced wages 4%
Employer 1%
State 15%
Employer Costs -19%

Level 2:
Reduced working hours  40%
Reduced wages 6%
Employer 4%
State 30%
Employer Costs -36%

Level 3:

Reduced working hours  60%
Reduced wages 7.5%
Employer 4%
State 45%
Employer Costs -53%

Companies who are able to show that they have had severe impact to their business due to the coronavirus are able to apply.  This aid does not apply to government entities, limited liability companies, partnerships, or foundations.

Sick Pay- Under usual circumstances employees are able to receive sick pay from the first day of illness. Due to the coronavirus, employees are able to receive pay starting from the first day.  In addition, the employee is not obligated to produce a sick note.

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