Sweden to Introduce Income-Based Unemployment Insurance

The Swedish government is set to propose a significant reform of the unemployment insurance system, shifting it towards an income-based model. The aim of this reform is to make unemployment insurance more purposeful and better equipped to support individuals during periods of joblessness. To facilitate the necessary preparations for this overhaul, the government is earmarking 50 million Swedish kronor for Sweden’s unemployment insurance funds in 2024.

The proposed changes seek to transform the unemployment insurance system so that benefits are based on income from gainful employment rather than the number of hours worked. This shift will simplify the administrative process, potentially leading to shorter waiting times for benefit payments. It will also enhance the ability to prevent incorrect disbursements and reinforce the work incentive.

Johan Pehrson, Minister for Employment and Integration, commented on the reform, saying, “Today’s unemployment insurance is complex and imposes a heavy administrative burden on the unemployed, employers, and unemployment funds. A new unemployment insurance system is expected to result in simpler administration, shorter waiting times, a strengthened work incentive, and greater capacity to prevent incorrect payments.”

The reform of the unemployment insurance system will also necessitate adjustments and changes to certain aspects of activity support.

The budget proposal for 2024 will include provisions for Sweden’s unemployment insurance funds. The government intends to present a proposal for the reformed unemployment insurance system to the Swedish Parliament in 2024.

These proposals are based on an agreement between the government and the Sweden Democrats.