As of 14 April. The Swedish Government has put forward the proposal to the Parliament. The vote is expected to take place on 2 April, 2020, after which the law will come into effect as of 7 April, 2020. Please note that this sections is being continuously updated as we receive more information. New rules were presented on 14 April - the section is being updated based on that on a continuous basis.

Update - yet to be approved

• Update: on 14 April, the government proposed to increase the hourly reduction up to 80% (prev 60% max reduction, so employees worked 40%) for a period of three months, 1 May - 31 July
• The proposition will be handed into Parliament during May but the rules will be applied in retrospect from 1 May
• When this proposition has been approved in Parliament, the section will be updated with all relevant details
• Summary of the new proposal below from press conference as of 14 April;

Overview

• Sweden has launched a new system for short term work allowance (Sw. korttidspermittering or korttidsarbete)
• The short-time work allowance means that the employee can have reduced working hours and still receive more than 90% of their salary
• The State covers a large part of the cost; depending on what level, up to 75% of the cost
• The employer can this way reduce their personnel costs by 50%
• Businesses can apply on the website of the Swedish agency for Economic and Regional Growth, starting 7 April 2020
• It will be applied retroactively from 16 March 2020
• A salary cap of SEK 44,000 is imposed, meaning the maximum amount of support per employee is SEK 26,030 (reduce work hours by 60% x 98.6%) - please not this will most likely change as of 1 May when the new rules are put into force on 1 May, see Update above
• Tillväxtverket (Swedish Growth agency) is the responsible authority
• Companies can apply for support for up to 6 months consecutive, with the possibility to extend for 3 months