Sweden: spring budget seeks to ease hiring by companies

During the negotiations that took place in January to form Sweden’s new government, prime minister Stefan Löfven, of the Social Democratic Party, committed to adopting a policy that would make it easier for companies to hire, particularly young people and other people struggling in the country’s employment market. The prime minister did so under pressure from Sweden’s Centre Party and the Liberals, the support of which was necessary to form a government. Far from being a purely social objective, this priority seeks to help Swedish companies, which are experiencing sizeable recruitment difficulties, to bring on board the staff that they severely lack at present, at a cost when their productivity is considered. The pledge forms part of the country’s spring budget, presented this month, which sets aside 1.1 billion krona (11 million euros) for implementing the policy this year.
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The main measures are as follows:

  • A 2/3 reduction in social security contributions for young people: Employers who hire young people aged 15 to 18 will only have to pay the pension contribution (10.21% of salary and other allowances of up to 25,000 krona [2,350 euros]) each month. The objective is to foster young people taking on employment during weekends and holidays, so it does not interfere with schooling, in the case of those in education. The proposal is expected to come into effect on Au
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