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Employ with financial subsidy

When you employ a person who, for various reasons, finds it difficult to enter the labour market, you can receive financial subsidy from the Swedish Public Employment Service. If you have a one-man business, you can get a temporary reduction in employer's contributions from the Swedish Tax Agency for the first person you employ. You can receive compensation for high sick pay costs from the Swedish Social Insurance Agency.

Employing with subsidy allows you to bring people with valuable skill sets into your business. Such people include new arrivals to Sweden, young people, long-time jobseekers and people with disabilities. The financial subsidy you can get depends on both you as an employer and the needs of the jobseeker.

Employ with financial support at the Swedish Public Employment Service (in Swedish)

New start jobs

If you want to employ a person who has been unemployed for a long time or is a newcomer to Sweden, you can get financial subsidy that is at least equivalent to the amount of the employer's contribution.

New start jobs at the Swedish Public Employment Service (in Swedish)

Introductory job

When you need to recruit for a profession with a shortage of trained labour, an introductory job may be a suitable choice. The person you choose to employ can combine their time in your company with training/education that meets your needs as an employer. You can receive compensation for up to 80 percent of the payroll expense.

Introductory job at the Swedish Public Employment Service (in Swedish)

Wage subsidy

You can apply for wage subsidy when you employ a person with a disability. The wage subsidy is intended to compensate for any modifications that may be needed in the workplace.

Wage subsidy at the Swedish Public Employment Service (in Swedish)

Labour Market Entry Agreement 

Labour Market Entry Agreement is a financial support which means lower wage cost as an employer. The employment must be a fulltime job and shall normally after 24 month lead to a permanent employment. As an employer you need to get a collective agreement within Labour Market Entry Agreement.  

Labour Market Entry Agreement at the Swedish Public Employment Service (in Swedish)

Work placement/internships

Work placement/internship means that a jobseeker is placed at a workplace to gain work experience and practical experience in a profession. The intern receives activity grant from the Swedish Social Insurance Agency and is insured for work-related injuries. You do not pay any employer costs for the person doing the work placement/internship.

About work placement/internships at the Swedish Public Employment Service (in Swedish)

Growth subsidy – lower employer's contribution for one-man businesses hiring their first employee

If you run a one-man business and meet certain conditions, you can be granted reduced employer's contributions for your first employee (called growth subsidy). The temporary reduction was introduced on 1 January 2017 for sole traders and was expanded to limited companies and trading partnerships on 1 January 2018. The law is temporary and applies until the end of 2021.

Read more about the growth subsidy

Compensation for high sick pay costs

All employers have basic protection against high sick pay costs. This means that you as an employer can be reimbursed for annual sick pay costs that exceed a certain level. You do not have to apply for the compensation. Enter your sick pay costs in the PAYE tax return that you submit to the Swedish Tax Agency. The Tax Agency will then send the information to the Swedish Social Insurance Agency, which will calculate how much compensation you can receive. The Tax Agency will then pay this amount into your tax account.

If your employee is ill frequently, there is a special high-risk protection. Special high-risk protection is something that your employee applies for themselves via the Swedish Social Insurance Agency. Once your employee has received the decision, this means that you as an employer can receive compensation for your sick pay costs if your employee is likely to have long periods of illness or is likely to be ill frequently. Employees who are ill frequently can also avoid having to pay a qualifying deduction.

If your employee needs modifications or assistive devices, you can may be eligible to receive an allowance for this. If the employee has worked for you for more than 12 months, the Social Insurance Agency may pay the allowance. If the person is a new employee, you apply for the allowance from the Swedish Public Employment Service.

You can calculate your sick pay costs and see if you are entitled to compensation with the Swedish Social Insurance Agency.

Calculate your costs with the Swedish Social Insurance Agency (in Swedish)