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Sweden to hike work permit salary threshold in two stages

Sweden's government now plans to raise the minimum salary threshold for work permits in two stages, with a smaller rise planned for this year followed by a rise to close to the median salary in 2024 or later.

Sweden to hike work permit salary threshold in two stages
Employment minister Johan Pehrson and immigration minister Maria Malmer Stenergard announce changes to the inquiry into tougher rules for work permits on February 17th. Christine Olsson / TT / kod 10430

Erik Engstrand, press spokesperson for Migration Minister Maria Malmer Stenergard, said that because the law passed in November did not give the government the possibility to exempt certain professions from the salary threshold, it had decided to increase it from today’s 13,000 kronor in two stages. 

“First, the government has the possibility to set the salary rate in a first step — we haven’t decided the exact amount yet, but it won’t be as high as the median wage — and then the next step will be the median wage.” 

Sweden’s parliament at the end of November voted through a bill which empowered the government to raise the minimum salary for a work permit at the time of its choosing and to whatever level it chose. 

Malmer Stenergard said at the time that the government would announce the new threshold “as soon as possible”. 

In the Tidö Agreement between the three government parties and the far-right Sweden Democrats, the parties agreed that the new rate should be close to the median wage of some 33,200 kronor. 

But last Friday, the government instead announced that it was instructing an inquiry into work permits launched by the previous Social Democrat governments to instead propose a suitable salary threshold, extending its deadline until January 2024. 

The government also said that anyone renewing a work permit would be given a one-year transition period during which the previous rules, including presumably the 13,000 salary threshold, would apply.  

This appeared to kick the introduction of a higher salary threshold into 2024 at the earliest, but Engstrand said that the government still expected to introduce the first rise this year. 

“The problem with this first stage is that you can’t set up any exceptions from that, so it has to be lower than the median wage. It’s basically because of the way the previous government initiated this. They didn’t give the possibility to insert exceptions from certain work categories.” 

The first raised salary requirement is currently being drawn up by the Swedish government offices, and will then be sent out for consultation before being decided on during 2023. Engstrand said that this new salary level would certainly be higher than the current 13,000 kronor minimum salary level. 

The second salary raise would be set “with the Tidö Agreement as starting point” and “with reference to the median salary”, Engstrand added in an email. 

As part of this raise the government inquiry will also look into exemptions for some job categories, and also whether to make it impossible for some job categories to get work permits. 

While Engstrand blamed the way the previous Social Democrat government had framed the directive voted through in November for the lack of exemptions in the first step, there have also been reports that the government, and in particular the Liberal Party, had failed to agree on which professions should be exempted. 

Johan Pehrson, Sweden’s employment minister and the leader of the Liberal Party, told TT that business leaders and the heads of regional health authorities had told him that a minimum salary of 33,000 for work permits for non-EU citizens would lead to staff shortages. 

He said he was particularly worried about nursing assistants. 

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WORKING IN SWEDEN

How many immigrants are overqualified for their jobs in Sweden?

Sweden is one of many European countries struggling with 'brain waste', a situation where immigrants struggle to find suitable full-time work or are overqualified for their roles due to their education not being recognised.

How many immigrants are overqualified for their jobs in Sweden?

The findings are part of an investigation by Lighthouse Reports, the Financial Times, El País and Unbias The News which found that most European countries fail to provide good job opportunities to educated foreigners – potentially at the cost of their labour forces and economies.

“While the results differ slightly between labour market outcomes, a consistent pattern emerges: immigrants lag behind natives everywhere, but brain waste is worst in Southern Europe, Norway, and Sweden,” the report read.

One of the metrics used to measure brain waste was the proportion of foreign residents who were overqualified for their role.

In Sweden, 32 percent of university-educated Swedes were overqualified for their roles, according to their report, while 68 percent of immigrants educated abroad were overqualified for their job.

The report didn’t study native Swedes with foreign diplomas, but one thing to note is that immigrants who obtained their qualifications in Sweden were far less likely to be overqualified than those who got their degrees outside of Sweden.

For immigrants with a degree from Sweden, 35 percent were overqualified (the difference to native Swedes was not statistically significant).

The results are not surprising, and the problem of well-educated immigrants not being able to work in their chosen profession has been raised on multiple occasions – for example in connection with Sweden’s new work permit salary threshold squeezing out highly-qualified foreigners.

An OECD report found as early as 2014 that a much bigger proportion of highly-educated foreign-born people in Sweden were overqualified for their roles, compared to the native population.

“Given the large number of Swedish immigrants who obtained their education and work experience abroad, there is a strong need for efficient and credible recognition of their qualifications and validation of informal competences,” urged the OECD report at the time.

But the Lighthouse Reports study pointed out that the figures for Sweden pointed to a systemic problem across the entire labour market, which doesn’t only affect well-educated immigrants.

“Once we look at metrics of brain waste that are not dependent on education, such as under-employment and unemployment, the large gaps in Southern Europe (and Sweden) reappear. This indicates that these countries struggle to integrate migrants into the labour market in general, not just college-educated migrants,” it read.

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