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Who is eligible for Swedish unemployment benefits?

Unemployment is expected to rise in Sweden this year, but what are the rules for unemployment benefit if you lose your job in Sweden?

Who is eligible for Swedish unemployment benefits?
You may be eligible for basic unemployment benefits even if you're not a member of an 'a-kassa'. Photo: Johan Nilsson/TT

If you become unemployed in Sweden through no fault of your own you may be eligible for unemployment benefits comprising up to 80 percent of your previous salary.

However, this benefit, known as a-kassa, short for arbetslöshetskassa, doesn’t automatically apply if you lose your job. You have to fulfil some requirements first in order to be eligible.

READ ALSO: Everything you need to know if you lose your job in Sweden

What are the requirements?

“You need to fulfil the basic requirement, which means that you’re signed up to the unemployment agency and are available to work,” Charlotte Hasselgren, department head of Sveriges a-kassor, told TT newswire.

You’ll also need to fulfil a work requirement, meaning that you must have worked for at least six of the last 12 months, with at least 60 hours of work in each calendar month.

A working day in Sweden is typically 8 hours, so this means in practice that you need to have worked for at least 7.5 days a month for six months in the last year to qualify. It doesn’t matter if these days are spread out across the month or in a single block.

“There are a lot of exceptions,” Hasselgren said, “but this is the general rule.”

If you fulfil these requirements, you are entitled to the basic amount, known as grundbeloppet in Swedish, which is a benefit based on the amount you worked over the last six months. 

“If you’ve been a member of an a-kassa for 12 months, you’re eligible for an income-based benefit,” Hasselgren explained.

How much can you get?

The basic amount is 510 kronor per day, if you worked full-time for the last 12 months. If you worked less than that – full time for the last six months, for example – you will get a corresponding amount, in this case half of the basic amount: 255 per day.

As previously mentioned, the income-based benefit is as much as 80 percent of your previous salary, up to a maximum of 1,200 kronor per day for the first 100 days, after which you’ll receive a maximum of 1,000 kronor per day.

There are a number of different a-kassor you can join depending on the sector you work in.

“If you work across multiple sectors you can choose an a-kassa where you fulfil the requirements,” Hasselgren said. 

“There’s also an a-kassa which doesn’t cover any particular sector, Alfakassan.”

What if you’re not a member of an a-kassa?

If you lose your job and you are not a member of an a-kassa, or you haven’t been a member for long enough to qualify for income-based benefits, you can apply to Alfakassan, who handle benefit payouts for a-kassa non-members.

“But you still need to fulfil the basic requirement and work requirement,” Hasselgren said.

“There’s a general assumption that you have to be a member of an a-kassa for a year to get a benefit, but you can still get a basic benefit,” she explained. “You just need to apply for it at Alfakassan.

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MONEY

Will the krona’s decline stop Riksbank from cutting rates?

The Swedish krona fell five percent against the euro and four percent against the dollar in June, a fall which might influence the Riksbank's decision on interest rates in August.

Will the krona's decline stop Riksbank from cutting rates?

The Swedish krona has seen a significant decline in June, nearing its lowest value of the year against the euro.

This decrease not only affects Swedish holidaymakers heading to Europe but also poses a challenge for the Riksbank, Sweden’s central bank, as it prepares for its upcoming interest rate decision.

READ MORE: Why the Swedish krona is expected to strengthen in the year ahead

Several factors driving the decrease

Since mid-June, the krona has weakened by approximately 5 percent against the euro and around 4 percent against the dollar.

On Thursday, the Swedish currency briefly hit its annual low against the euro.

According to Karl Steiner, head of analysis at the SEB bank, this recent decline against the dollar is primarily due to a reduced risk appetite in the market, exacerbated by disappointing reports from major companies such as Tesla and Alphabet.

Additionally, political uncertainty in the US, sparked by President Joe Biden’s announcement that he will not seek re-election, has further influenced market dynamics.

“Everything about the American election has become a little more uncertain. The market doesn’t really know how Kamala Harris stands against Trump, or what her agenda is, and now has to rethink,” Steiner explained, as reported by the news bureau TT.

Why small currencies weakened in June

Steiner noted that the dollar has strengthened against most currencies, typically viewed as a safe haven during market turbulence, while smaller currencies like the Swedish krona tend to weaken under such conditions.

Alexandra Stråberg, chief economist at Länsförsäkringar, attributed the krona’s decline to faster-than-expected inflation reduction in Sweden compared to the eurozone.

“The communication from the various central bank governors has also been different,” she noted.

While the Riksbank has indicated potential interest rate cuts, the European Central Bank (ECB) has refrained from making similar forecasts.

“In the short term, you see that the interest rate in Sweden will be lower than the interest rate in Europe. This, in turn, means a weakening of the krona because it means that you get a lower return if you invest in the krona than in euros,” Stråberg said.

The August interest rate decision

The krona’s continued weakening could pose a more significant issue for the Riksbank’s key interest rate decisions in August.

Inflation remains the primary focus for the Riksbank, but a weakening krona can indirectly influence inflation.

The central bank’s inflation target is two percent.

READ MORE: What could low inflation mean for foreigners in Sweden?

“If the krona continues to weaken, it may be that the Riksbank decides not to make as many interest rate cuts as originally thought,” Stråberg said.

Conversely, Karl Steiner believes the Riksbank will not factor the krona’s weakness into its decision-making process.

“When inflation falls more than expected, you have to act on it in the first place. As the situation is right now, they can only note that the krona is weak and that parts of it have to do with international affairs,” he said.

The key interest rate is the central bank’s main monetary policy tool.

It decides which rates Swedish banks can deposit in and borrow money from the Riksbank, which in turn affects the banks’ own interest rates on savings, loans and mortgages.

If bank interest rates are high, borrowing money becomes more expensive, which means people spend less, and as a result, inflation drops.

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