Press release from Ministry of Finance

Scaling up crisis measures for jobs and businesses

Published

The Government, the Centre Party and the Liberal Party are now presenting further measures to alleviate the impact of the virus outbreak on jobs and the economy in Sweden. The ongoing pandemic is having a major impact on the Swedish economy. The focus of the crisis packages already presented has been to get measures in place quickly. Today sees the presentation of improvements to the system for short-term layoffs so that it will be even more impactful.

The Government will present the proposals to the Riksdag in an additional amending budget in mid-May. The proposals are based on an agreement between the Swedish Social Democratic Party, the Centre Party, the Liberal Party and the Green Party.


Scaling up the system of short-term layoffs


It is proposed that the system of short-term layoffs be temporarily reinforced. The proposal means that employers will now be able to reduce their employees’ working hours by up to 80 per cent and that central government will cover a clear majority of the cost. This reinforcement of the system will apply for three months from 1 May 2020.


Employer’s costs to be significantly reduced


The new system means that costs will be reduced even more for employers. The wage costs for an employee will be reduced by over 70 per cent while workers retain almost 90 per cent of their original wage. Combined with the reduced employers’ social security contributions, employers can be unburdened from up to 86 per cent of total wage costs during May and June.


Significant increase in control mechanisms


A higher compensation rate also requires greater control. The Government will provide resources equivalent to 130 members of staff to the Swedish Tax Agency to check businesses that receive support for short-term layoffs. This will be achieved through more unannounced checks of staff registers, for example.


The Government Offices is also reviewing the possibilities of introducing other measures to strengthen checks in order to prevent the system being abused.

Press contact

Johan Ekström
Press Secretary to the Minister for Finance Magdalena Andersson
Phone (switchboard) +46 8 405 10 00
Mobile +46 73 086 32 01
email to Johan Ekström
Frida Färlin
Press Secretary to the Minister for Financial Markets and Housing, Per Bolund
Phone (switchboard) +46 8 405 10 00
Mobile +46 73 078 52 24
email to Frida Färlin
Anna Simon-Karlsson
Press Secretary, Centre Party
Mobile +46 73 065 94 25
Adam Alfredsson
Head of Press Service, Liberal Party
Mobile +46 70 298 67 90