Sweden: Proposal to extend employment support during July-September 2021 (COVID-19)

Financial support offered in response to the coronavirus pandemic

Financial support offered in response to the coronavirus (COVID-19) pandemic

A proposal (announced 10 May 2021) would extend by three months (July, August, and September 2021) financial support for employers and their employees whose work hours are reduced.

The financial support is offered in response to the coronavirus (COVID-19) pandemic.

Under a temporary law (2021:54), companies that reduce their employees’ work hours by up to 80% may qualify for financial assistance, with the government paying 75% of the salary and wage costs during that period. The proposed extension of this financial assistance for July-September 2021 generally would be the same as the financial assistance already offered for January-June 2021.

One change under the proposed extension is that for the months of July-September 2021, the month of April 2021 would be the comparative month regarding the financial support paid by the government. Also under the proposed extension, employers that were previously approved would have to request an extension of support. The extension would not be automatic. A request for an extension would have to be made before the end of July 2021.

Employers that did not previously apply for financial support would be subject to regular review and would have to submit an application for preliminary support for the three months, no later than the end of November 2021.

The proposal to extend the financial support is pending consultation, and once all processes are completed, is expected to be effective 29 June 2021.

Read a May 2021 report (Swedish) prepared by the KPMG member firm in Sweden



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