As of 25 March - more info to come as it's made available. This proposition was put forward on 25 March by the Government, and the Parliament is expected to expedite this on 2 April.
What it entails
- A temporary reduction in employers' contributions will be proposed during the period 1 March - 30 June 2020
- The employer's contribution fee is 31.42% in total, which includes the retirement pension contribution of 10.21%
- Now, companies during the period mentioned above only have to pay the retirement pension contribution (10.21%) - saving 21.21 ppts
- The reduction is proposed to apply to up to 30 employees and to the part of the salary of the employee that does not exceed SEK 25,000 per month
- This entails a tax relief of up to SEK 5,300 per employee per month
- In order to provide a corresponding relief to entrepreneurs without employees (where the owner is the sole employee), a reduction of the "own" fees is also proposed (Sw: egenavgifter)
- The public financial cost of the proposals is estimated at SEK 33 billion
- Expected to be available from 6 April 2020 after approval in Parliament
Illustrative example:
- Person 1: SEK 30,000 in salary - employers contribution reduced with SEK 5,300
- Person 2: SEK 25,000 in salary - employers contribution reduced with SEK 5,300
- Person 3: SEK 20,000 in salary - employers contribution reduced with SEK 4,242
Practicalities
- The company does not have to pay in the contribution and then claim it retroactively, rather, it appears the companies will report that it should not be paid from the beginning and then just not pay it
- Can be used by companies who have more than 30 employees but they will not be able to get reduced fees for more than 30 employees