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BENEFITS

More Swedes denied sick benefits

The number of Swedes who have been denied sick benefits has risen sharply over the past year, according to new statistics.

Over 8,200 people this year have either been refused the benefits or seen their compensation reduced. The spike is due to new health rules and better procedures for judging who is capable of working.

About 30 percent more saw their sick pay compensation reduced in the first four months of this year compared to the same period last year, according to recent figures from the Social Insurance Agency (Försäkringskassan) as reported by news agency TT.

In the last two years, the number who have seen their sick pay compensation reduced has more than doubled.

“The increase in the numbers with reduced compensation has to do with how we apply the rehabilitation chain,” said Bertil Thorslund, an analyst at the agency. “Medical decisions probably also support such an impact. They result in illnesses not lasting as long.”

Radical changes have been made to Sweden’s system of sick benefits. Sweden has long had the highest levels of sick leave in the European Union, according to official figures, despite having one of the world’s healthiest populations by other measures.

Previously, it could be many years before a sick person’s work capacity was tested. They are now subject to time limits provided by the government in 2008, which means that working capacity is tested against the entire labor market after six months.

The government also introduced also introduced new guidelines for the sick in 2007, the so-called medical decision support.

“The agency has always had the mandate to test someone’s ability to work across the entire job market, but there have been no deadlines before,” said Thorslund.

During the first four months of this year, more than 8,200 people were denied sick benefits, of which about 3,300 saw their sick pay compensation reduced and about 4,900 were rejected and received no compensation at all.

The number who were refused sick pay rose 38 percent during the first four months compared with the same period last year. The percentage of refusals increased from 1.6 percent in 2007 to 2.8 percent in 2009.

The increase in denials may be related to the agency becoming better at investigating work capacity or that the application and interpretation of the law is more uniform at the various offices now than before.

However, no one knows for sure the reason behind the jump.

Thorslund described the developments as “a mystery that we do not understand.

“The increase is probably not due to any rule change. We have discussed it and not found any good explanation,” said Thorslund.

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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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