Background & Purpose

For nearly ten years, a system has been in place allowing employers to receive state compensation for certain high sick pay costs. The government believes these public funds need to be used more efficiently, citing limited control over payments and an increased risk of incorrect payouts.

Proposals & Debate

The government proposed to completely abolish the compensation system for high sick pay costs, arguing that it was inefficient and lacked sufficient control mechanisms.

The Decision

The Swedish Parliament voted in favor of the government's proposal, meaning the system for compensating employers for high sick pay costs will be discontinued. The Parliament also acknowledged a government report on the National Audit Office's findings, deciding no further action was needed since the system is being abolished.

Does this affect you?

  • Employers: Will no longer receive state compensation for high sick pay costs, potentially increasing their financial burden during long-term sick leave for employees.
  • Swedish Social Insurance Agency: Will stop processing new applications for this specific compensation, simplifying their administrative tasks related to this system.

In Practice

  • The system that provided compensation for high sick pay costs will no longer exist.
  • Employers will not receive any new compensation for sick pay costs that occur from July 1, 2024.
  • Compensation can still be paid out for sick pay costs that happened before July 1, 2024.
  • The government will not take any new steps based on the National Audit Office's report, as the system itself is being removed.