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Q&A: What help is available for startups and freelancers in Sweden affected by the coronavirus?

Many people in Sweden who own their own business or work as freelancers are feeling the negative economic effects of the coronavirus crisis, which has disrupted supply lines and led to a decrease in consumption.

Published: 2 April 2020 18:10 CEST
Q&A: What help is available for startups and freelancers in Sweden affected by the coronavirus?
The government presented measures last week to support small businesses and the self-employed. Photo: Janerik Henriksson/TT

On March 25th the Swedish government presented several proposals primarily directed at the self-employed and small business owners. 

Here are some of the situations that you may find yourself in, what help is available, and how to get it.

I have fallen ill or my doctor has told me to self-quarantine because I might be carrying the virus.

In case of illness, or if there is a likelihood that you are a carrier of the coronavirus, it is important you stay at home.

The government will temporarily cover the costs of sick pay for employers with a limited company based in Sweden. The usual 'waiting period' (known in Swedish as karensdag) has been suspended under these extraordinary circumstances, in order to reduce the spread of the coronavirus.

This means that you (or your employees) can apply for compensation from the first day of sick leave onwards, and this will be paid by the state. These new rules apply from March 11th to May 31st 2020.

The first day's sick pay will not be quite as high as typical sick pay for many workers, though. Under the temporary rules, all employees will receive 700 kronor before tax on the first day of sickness while all self-employed people will receive 804 kronor before tax, regardless of their salary, whereas usually sick pay is 80 percent of the usual salary.

You can also retroactively seek compensation for past sick days within this timeframe at the website of the Swedish Social Insurance Agency, Försäkringskassan.

If you are self-employed in Sweden you can apply for a standardized allowance for your first 21 days of illness including this first day. For more information and to apply for sick pay or sickness benefits, visit the Försäkringskassan homepage.

Note that the government has also temporarily scrapped the requirement for a doctor's note for sick pay. This means that you or an employee who has fallen ill can stay at home for up to two weeks without having to provide a doctor's note, and still be eligible for sick pay.

If a doctor has stated that you or one of your employees pose a risk because you (or they) might be a 'disease carrier' and therefore has told you to stay in quarantine, you (or your employees) are entitled to compensation in the form of a quarantine or 'disease carrier' allowance. You are also eligible for this allowance if you are self-employed.

In the case of compulsory quarantine, those who are self-employed are entitled to around 80 percent of their usual income and limited company owners may receive 80 percent of their estimated pre-tax salary they usually take from their business. Here you can find more information on what applies to your limited company and here you will find relevant information if you are self-employed. 

CORONAVIRUS IN SWEDEN:


Photo: Henrik Montgomery/TT

I have difficulty paying my company's taxes.

Companies based in Sweden that are financially affected by the corona crisis can apply for a tax payment respite, which means that you are allowed to postpone paying (part of) your taxes.

The government has introduced different types of alleviations, including the postponement of employer contributions, deducted tax and VAT. The payment of these taxes can be deferred for up to one year from the day you have received the decision from Skatteverket, the Swedish Tax Agency.

You can request a payment deferral for up to three accounting periods between January and September 2020. In order to apply for a temporary respite, you can use the new digital 'payment respite service' in the My Pages section on the website of Skatteverket.

Those who are self-employed in Sweden and have been affected by the crisis can deduct 100 percent of their taxable profit for the year 2019 in their accrual fund. The maximum is one million kronor.

You will then be able to offset this amount against future losses. This means that many people can get back the preliminary tax they paid in 2019. Read more about how to reclaim preliminary taxes at Skatteverket (in Swedish), or call the agency on the phone.

I'm struggling to pay social security for myself or my employees.

The Swedish government has also proposed to temporarily reduce employers' social security contributions.

That means employers now only have to pay pension fees for yourself and your employees. This regulation is valid for up to 30 workers and exclusively for salaries under 25,000 kronor. It applies to the period between March 1st and June 30th 2020. The regulation enters into force on April 6th and will be overseen by Skatteverket.

Self-employed people based in Sweden are exempted from social security contributions apart from the pension fee, two-thirds of the other deductibles and the general salary contribution over 2020.

Here you can find more information (in Swedish).

I'm struggling to pay my business' rent.

If your company belongs to one of the sectors most vulnerable to the economic hardships set off by the coronavirus, such as the hotel, restaurant, and retail industry, the government has offered support that aims to help reduce your rent costs.

The state has pledged to account for 50 percent of the rent reduction and up to 50 percent of the fixed rent. This support can be applied for retroactively and will cover the period April 1st until June 30th 2020. More information can be found on the government's website.


Photo: Henrik Montgomery/TT

I'm struggling to pay my employees' salaries.

Many companies and employers are having a hard time staying afloat as they see the number of customers dwindle or because of disrupted supply chains.

In order for businesses to retain their staff and be able to get back up and running as soon as the crisis has been resolved, the government has come up with new regulations and allowances concerning korttidsarbete or short-term layoffs. 

In case of a short-term layoff or reduced working hours, employees are entitled to around 90 percent of their usual income, even if their hours have been reduced by 20, 40 or 60 percent.

As their employer, you can apply for support at Tillväxtverket and receive up to 53 percent of your employees' salaries from the state. Employers can apply for this so-called korttidspermittering from April 7th onwards and receive compensation retroactively for temporary layoffs dating back to March 16th.

The maximum compensation employers can receive is 44,000 kronor per month per employee.

Labour unions and employers are expected to sign agreements on korttidspermittering, the short-term layoffs, first on a centralized level and subsequently at the relevant company. If there is no collective bargaining agreement in place, at least 70 percent of all employees must approve of and take part in the short-term layoff. The reduction of working hours and wages should be the same for all workers taking part.

The short-time work allowance program will remain in effect throughout 2020.

Moreover, companies that are made dormant in 2020, in the case of unemployment, are exempted from the rule that a company can only be made dormant once during a five-year period.

I could use a loan…

For small businesses operating in Sweden that are short of money during these difficult times, the government is easing up access to financing.

The state will inject 3 billion kronor of capital into Almi Företagspartner AB, which in turn offers loans to small and medium sized companies throughout the country. Almi has 40 offices across Sweden and can be reached by phone or through their website.

In addition to the measures taken by the government, the central bank has announced it will give out loans up to a total of 500 billion kronor. This will take place through the different Swedish banks, in order to safeguard supply, so you can turn to your company's bank to request this financial assistance.

The government has additionally guaranteed 70 percent of all new loans provided by banks to companies that have been affected by the crisis set off by Covid-19, but that are otherwise viable. The guarantee will be issued to the banks, which will provide these guaranteed loans to businesses.

Is there any other support I can get?

Apart from this national support package, most regions have separate regulations and support systems in place to help their local entrepreneurs. Here you can find the available business assistance in your region.

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READER INSIGHTS

How to find a job in Sweden: Five tips from those who’ve been there, done that

The Swedish job market poses unique challenges for newcomers. The Local's readers share their best tips for cracking the career code.

Published: 10 April 2024 11:32 CEST
Updated: 13 April 2024 15:50 CEST
How to find a job in Sweden: Five tips from those who've been there, done that

Network, network, network!

A statistic that often gets tossed around is that seven out of ten jobs in Sweden are obtained through personal connections, and there’s no doubt that a good network is crucial to your job hunt, making the labour market extra challenging for newcomers to the country.

In fact, networking was the main tip mentioned by The Local’s readers.

“The job market is quite hot in Sweden, and talent is in short supply. People hiring do not have a lot of time to find the right talent, and tips from friends, colleagues and former colleagues are the way to first, find out organisations are hiring, and secondly, get your CV on the short list,” said Kyle, a Canadian reader who works in innovation management in Gothenburg.

“If you are going for a major employer like Volvo, network gets you in the door, as HR does not have much to do with hiring… the hiring managers do all of it and have no time, due to the insane number of consensus meetings. If you are looking for smaller organisations, they have even less time to find people, and networking is their primary way to find talent,” he added.

NETWORKING IN SWEDEN:

Some of the networking tips readers mentioned were going to job fairs, getting an internship to help you establish connections in your preferred field, joining clubs (this could be anything from your local gardening association to meetups for coders, but focus on clubs that may be popular among people working in your chosen field), and drawing on your organic network of friends, neighbours and others.

Don’t neglect the groundwork

The saying “dress for the job you want, not the job you have” is getting worn out (and people may look at you funny if you turn up to interviews in a Batman suit), but there’s truth to the notion of making sure you know what you want – and preparing for it.

In other words, don’t wait for a job ad to appear before you start to customise your CV and figure out what skill set you need. Create your CV now so that you’re ready to tweak it to your dream job – you could even have a general look at job ads in your field to see what requirements are needed. And don’t forget to spruce up your LinkedIn profile so that it fits with your career goals.

“I believe that several factors contribute to successfully landing a desirable job in Sweden. It’s essential to prepare to meet the requirements beyond just having a university degree. Many individuals realise these requirements only after completing their studies when they start searching for a job, which can be too late,” said Adnan Aslam from Pakistan, who works as a food inspector.

“I recommend identifying the job advertisements for positions you aspire to hold in the future and then preparing for those requirements during your studies. For me, acquiring a basic level of proficiency in the Swedish language and obtaining a Swedish driving licence were crucial. I pursued these goals during my studies and was able to secure a desirable job before graduating,” he added.

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Felipe Cabral even has a GPT assistant trained on his own CVs and old cover letters, and said the set-up only takes ten minutes if you already have your documents. “With that in place, you can give instructions like: Read this job description and create a tailored version of my CV and letter for it. (…) Remember to always review and ask it not to create data aside from your documents.”

Be flexible and ready to adapt

Moving to a new place inevitably means having to learn not just the practicalities such as how to write a CV or which websites to use to look for job openings, but also learning how to navigate a new culture with all its unspoken expectations.

Swedish workplaces are generally less hierarchical than many other countries, but that doesn’t mean you can say whatever you want whenever you want without anyone raising an eyebrow. Swedes are usually direct, but be careful of being too abrasive or boastful: raising your voice, even during a spirited argument, or banging your own drum to show off your skills may not go down well.

“Talk, deliberate, complain like a Swede and you’ll come across like you know what the job entails, so your trustworthiness increases,” said an Indian data analyst who preferred to remain anonymous.

“Office politics are just as strong in Sweden as anywhere else. The flat hierarchy is deceiving as social hierarchy is enforced quite a bit in that lack of formal hierarchy. Take your time in learning these dynamics wherever you work before revealing your talent and capabilities. Expect those internal politics to happen, and they won’t hurt so much when they do,” said Kyle, the Canadian reader in Gothenburg.

This article about Swedish office politics may be useful.

Stay true to yourself

Adapting to your surroundings is one thing. Completely changing who you are is another.

For one thing, your happiness is as important as your career progression, and for another, your foreignness need not be an impediment: it’s also a skill that sets you apart from the rest. It means you have unique experience, and also, in the right setting, provides an opportunity to sometimes violate those social rules we mentioned above, because people assume you will, anyway.

“Trust is key. Build trust in your network, work with integrity. It’s OK to violate jantelagen if you are maintaining integrity. Sometimes your outsider and more honest/open opinion will burn bridges, especially those that may feel threatened by talent. But it will build trust with other colleagues who see it as brave and more trustworthy to work with,” said Kyle from Canada.

Hunker down for the long haul

We don’t want to scare you, because there are plenty of examples of people who quickly find their dream job in Sweden and settle into their new workplace, enjoying perks such as long summer holidays, generous parental leave and the famous work-life balance.

But if you do find it tougher than you expected: know that you’re not alone.

Several readers who responded to the survey said they were still trying to find a job in Sweden.

“I found jobs all over Europe but not here. They say they have a lack of experienced senior engineers but the don’t seem to be doing much to solve this,” said a Brazilian in Gothenburg.

A reader from Bangladesh said she was “at a loss” as to how to make a career change from her current AI role in Stockholm, despite many years of experience as an IT project manager.

“Over the past 18 months, I’ve submitted over 600 applications to various organisations. Unfortunately, despite being overqualified for some positions, I’ve faced rejections at every turn, from both large and small companies. The job market here, especially for foreign-born women, feels overwhelmingly challenging,” she said, adding that the struggle had impacted her mental health.

The Local has on several occasions reported on foreign residents’ struggle to get a foot on the Swedish job ladder, with many facing hurdles such as employers’ unfamiliarity with international degrees, discrimination, or a lack of network that can provide paths into a company.

So during the job hunt, don’t forget to care for yourself. Share your concerns with fellow job-seekers, ask for help and join networking groups – this is good not just for creating new contacts, but also in terms of your social well-being and meeting people who are in a similar situation.

And finally, as one British reader in Stockholm advised, keep looking: “Be open-minded with the opportunities that present themselves. It isn’t an easy market to enter and doesn’t feel inclusive.” But he added, “don’t give up”.

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