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Sweden reins in sick leave payouts

Fewer Swedes are claiming sick leave benefits than at any point since 1982, according to new figures from the Swedish Social Insurance Agency (Försäkringskassan).

In January this year, the agency paid benefits to some 112,000 people who had spent at least the previous 30 days on sick leave. In December 2003 this figure was more than twice as high.

The sharp drop is reflected across all counties, both sexes and among both native Swedes and people born outside the country.

“The number of cases of people out sick for over 30 days is now at its lowest level since the early 1980s. It is our view that sick leave cases will settle at historically low levels in 2010,” said the agency’s director-general, Adriana Lender, in a statement.

The number of people on sickness-related early retirement schemes has also plummeted, with 35,000 people granted access to early retirement benefits in the last twelve months, the lowest level since the 1970s.

In total, 520,000 people in Sweden receive early retirement benefits, corresponding to one in every ten people between the ages of 19 and 64.

In the twelve months leading up to April 2009 the Social Insurance Agency paid out benefits amounting to an an average of 35.1 work days per person aged 19 to 64. In 2003 the corresponding figure soared to a record 43 work days per person.

The agency has introduced tighter checks on benefit recipients in recent years to combat a situation in which Sweden’s sick leave statistics had strayed way beyond the European average.

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TAXES

How Germany plans to increase child benefits and provide tax relief

Germany's governing coalition has agreed to increase child benefits (Kindergeld) and offer tax relief. Here's what you need to know.

How Germany plans to increase child benefits and provide tax relief
Photo: DPA

The cabinet of the coalition government, made up of Angela Merkel's Christian Democrats and the centre-left Social Democrats (SPD) agreed Wednesday to increase child benefit – or Kindergeld – by €15 per month next year.

The move is part of the Family Relief Act (Familienentlastungsgesetz), which aims to take the financial burden off middle and lower class families. It's part of an overall package which is setting the federal government back €9.8 billion over 2019 and 2020.

The child benefit is to rise to €219 per month on January 1st 2021 for the first and second child, to €225 per month for the third child, and to €250 from the fourth child onwards.

According to the bill, families will also receive tax relief. for example, the tax-free child allowance (Kinderfreibetrag) is to be raised by more than €500 to €8,388.

In total, families would be relieved of around €12 billion per year, said Finance Minister Olaf Scholz of the centre-left Social Democrats (SPD).

“This is good news for all families and children in Germany,” he said.

READ ALSO: Kindergeld – what you need to know about Germany's child support payments

 

Families are also set to benefit from a cash boost due to the coronavirus pandemic.

The planned Kinderbonus of €300 per child is to be transferred in two instalments of €150 each in September this year, and October. It will be paid to parents alongside Kindergeld.

Explained: How does Germany's Kinderbonus coronavirus payment work?

Boost for taxpayers

Meanwhile, all taxpayers in Germany are to receive a boost. The basic tax-free allowance will be increased from €9,408 to €9,696 from next year.

Meanwhile, the limit, from which the highest tax rate of 42 percent must be paid, will rise from €57,052 to an annual income of €57,919. A further increase of the income limits is planned for 2022.

However, all changes agreed by the cabinet must still be approved by the Bundestag and Bundesrat before they can come into force.

READ ALSO: Here's how Germany plans to reform 'Elterngeld' for new parents

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