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Swedish income insurance: how does it work and do you need it?

You may have arrived in Sweden with a fair idea of its strong social support systems. But what do you know about its a-kassas?

Swedish income insurance: how does it work and do you need it?
Photos: Anna Wright, Akademikernas a-kassa/Getty Images

A-kassas (short for arbetslöshetskassa) are unemployment funds that pay income-related insurance benefits. It’s a topic well worth taking the time to understand amid the coronavirus pandemic – especially with more generous temporary rules currently in place (more on this below).

We invited readers of The Local to send in questions for Anna Wright, of Akademikernas a-kassa, Sweden’s biggest income insurance provider for university graduates. Here, she explains the key things you need to know and responds to questions you sent us on Facebook and via email. 

Find out more about securing your income by joining Akademikernas a-kassa

Q: What’s the difference between an a-kassa and a union (fackförening or just ‘fack’ in Swedish)? Can you join an a-kassa even if you’re not a member of a union?

Anna Wright: It’s not a requirement to be a member of both a union and unemployment insurance fund (a-kassa), but we always recommend you join both. Here’s the difference:

  • You can get money from an a-kassa if you become unemployed.

  • From a union, you can get negotiating help, salary statistics, advice on employment law, a review of your CV or LinkedIn profile and more.

If you’re a member of both, you can also get income insurance that covers up to 80 percent of your entire salary if you lose your job. The benefit from the income insurance is paid by the trade union – but it’s always based on our decision on unemployment benefit (which we pay). 

Q: Is it mandatory to be a member of a union and an a-kassa to be able to get 80% of your salary in case of unemployment?

AW: It depends on how much you earn. In 2020, you can receive up to 80 percent of 33,000 Swedish kronor from the unemployment insurance fund. We always recommend that you join a union for the reasons above.

Q: What do I need to know about the temporary rules on unemployment benefit introduced in 2020 due to coronavirus?

AW: A number of temporary changes were agreed by the Swedish Government and supporting parties earlier this year in response to the economic impact of the pandemic. The key changes are: 

  • Increased maximum benefit: the highest benefit level is 80 percent of your income up to 33,000 kronor per month and the maximum benefit per day is now 1,200 kronor before tax for the first 100 days of unemployment.

  • No waiting period: unemployment benefit will be paid out from the first day of unemployment, rather than after a six-day waiting period.

  • Shortened membership requirement: you could qualify for up to 80 percent of your salary after being a member for just three months from March to December 2020 (compared with 12 months if you applied before April 13th 2020)

These rules are due to expire after January 3rd 2021. A potential extension to the higher compensation levels beyond this date is being discussed. But the rest will go back to ‘normal’ with the qualifying period reintroduced, meaning you will then need to have been a member for 12 months to receive compensation based on your salary. You can find full details here

Q: I’m self-employed. Why join an akassa?

AW: Many university graduates choose to go their own way and start a business. But there’s always a risk that your company will not be profitable. If you then end up needing to claim unemployment insurance, what you receive will be based on your higher earnings – whether that was as an employee or as an entrepreneur. This applies so long as you become unemployed within 24 months of finishing as an employee – otherwise, we will base the benefits on the period in which you had your own business.In Sweden, it’s actually almost 50 years since the self-employed were given the right to join an a-kassa! 

Secure your income now by joining Akademikernas a-kassa

Q: Can I become a member although I’m not working and I’m new to Sweden?

AW: You can join an a-kassa as soon as you start to work and pay tax in Sweden.

Photo: Getty Images

Q: Why is Akademikernas a-kassa’s fee changing to 140 kronor per month in October?

AW: The fee was adjusted to reflect the higher costs associated with offering a more generous daily allowance. This allowance was increased from 910 kronor to 1,200 kronor in March to mitigate the economic consequences of the coronavirus pandemic for individuals and society. Benefits from a-kassas are financed by membership fees and employer contributions. And when 75 percent of our unemployed members get higher daily allowances, we need to contribute more to the government cost. 

We’ve had an exceptional year, with 40 percent more applications for benefits. We’ve also had around 50,000 new members join us and we’ve still been able to maintain our processing times for applications to join. 

Q: I live in Sweden and pay Swedish income tax but commute to London, where I start and end my flights as cabin crew for an airline. I’ll be furloughed in October and I’m wondering if I’m eligible to pay into an a-kassa?

AW: First of all, do you have a Swedish work permit – that is, are you able to work for a Swedish employer? Second, is your employer paying Swedish social security costs (arbetsgivaravgifter)? If the answer to both these questions is ‘yes’ you should be able to join a Swedish a-kassa and get unemployment benefits if your employment ends, provided you fulfil the normal requirements.

Q: Finally, one Facebook comment encouraged people to save money themselves instead of joining an a-kassa, which the reader claimed may not pay out when needed. Another reader quickly disagreed! So, what does the expert say? 

AW: We’re sorry you feel that way about the a-kassa system in Sweden. All the a-kassas have the same rules and if you fulfill the requirements you will get your benefits. If you become unemployed you can get up to 26,400 kronor before tax per month – and you’d have to save your membership fees for quite some time to get that amount of money.

Whether you’re employed or an entrepreneur, find out more about protecting your income by joining Akademikernas a-kassa as a university graduate 

 

 
For members

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.

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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