To mitigate the financial consequences of Covid-19, the Swedish state has taken several important financial measures. Internago has summarized the package and some implications for your payroll services in Sweden below;
Increased loan facilities and credit guarantees for Swedish businesses.
- Expanded loan opportunities through Almi, the Export Credit Committee and the Swedish Export Credit.
- The central government is currently discussing a proposal where they will guarantee 70% of new loans banks provide to companies that are experiencing financial difficulty due to the COVID-19 virus but are otherwise stable.
- A suggested state credit guarantee for loans to airline companies (SEK 5 Bn).
Reduced costs for companies
- A proposal of temporarily reduced social security costs is currently being reviewed; from the 1st of March to the 30th of June 2020 where only the state pensions contribution is paid. The maximum reduction is SEK 5 300 per employee and month, and 30 employees per company.
- 100% of the taxable profits for 2019 (up to SEK 1 million) can be set aside in the tax allocation reserve, which can then be set off against future losses. Hence your company can get back the preliminary tax paid in 2019.
- Regarding short-term layoffs the government will cover 75% of the costs when staff working hours are reduced.
Better conditions for workers who become ill or unemployed
- The sick pay standard deduction will be discontinued for two months between the 11th of March and 31st of May in that the central government will pay illness benefits from the first day of sickness.
- A temporary reinforcement of the unemployment insurance. It is proposed that increased funding is to be paid to the Swedish public employment service (Arbetsförmedlingen) and labour market policy programmes.
For more details on the economic measures in response to COVID-19 and how that would affect your payroll services in Sweden, please click here!
