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WORKING IN SWEDEN

Swedish Centre Party leader: Work permit salary threshold a ‘human catastrophe’

Centre Party leader Muharrem Demirok branded plans to further raise Sweden's work permit salary threshold 'a human catastrophe' in an interview with The Local's Sweden in Focus podcast.

Swedish Centre Party leader: Work permit salary threshold a 'human catastrophe'
Centre leader Muharrem Demirok. File photo: Fredrik Sandberg/TT

In November last year, Sweden’s work permit salary threshold was raised from 13,000 kronor to 27,000 kronor a month.

Last month, the government announced plans to raise the work permit salary threshold once again, this time to Sweden’s median salary, which is currently 34,200 kronor.

Demirok said Sweden was already seeing the impact of the first hike, highlighting the country’s welfare sector as one example.

“I’ve visited a couple of cities in Sweden where they had to lay off people from care homes, where they had to send them back. They’d been here a long time working and paying taxes, without them our welfare wouldn’t go around. And all of a sudden, just because they made a couple of thousand less than this threshold, they had to be sent out,” he told The Local.

He slammed the government’s plans to further raise the threshold as a “human catastrophe” for those who will lose their jobs or be forced to leave Sweden.

“It’s going to be devastating for our welfare system, but also for other companies, not least in the green sector, it’s hard to find the labour force as it is. And if you can’t get the expertise you want, it’s going to hinder you from growing, and it’s going to make businesses go out of business,” Demirok said.

“I don’t even know why the government is doing this, it’s just giving up to the Sweden Democrats, because everyone, both the public sector and business sector, agrees that this is stupid politics.”

There has been pressure to limit labour migration across the political spectrum in recent years, with the Centre Party among the most outspoken critics against tightening up Sweden’s liberal labour migration laws.

The ruling Moderates were responsible for liberalising the work permit system in the first place when they were in government under Fredrik Reinfeldt 2006-2014 as part of the Alliance with the Christian Democrats, Liberals and Centre.

“We might be alone in parliament on this now, but we used to have friends in the Moderates, Christian Democrats and the Liberals. We used to agree on this. From the left, it’s easy to understand – if you bring in people from other countries, you also have to liberalise the labour policy in Sweden, and if you’re such good friends with the unions you don’t want to do that,” Demirok said.

“But I still can’t understand why the Moderates and Liberals are against it.”

According to Migration Minister Maria Malmer Stenergard, from the Moderates, the move is an attempt to free up low-paid positions for people already in the country.

“This will mean that more people who are already in Sweden, but can’t yet support themselves financially, will be able to take jobs which actually exist,” she said in October 2023.

Demirok argues that this isn’t realistic.

“If it was that simple, these people would be in work now. They wouldn’t be unemployed. Getting someone to work in a restaurant as a chef or working in a farm or in a hotel, you have to be skilled, you can’t just come in and work as a highly skilled chef in a restaurant,” he added.

When the 27,000 kronor threshold was introduced in November, many of The Local’s readers criticised the decision. The government’s plans to further hike the threshold would include some exceptions for certain categories of workers, although the details are not yet clear.

The proposal, submitted to Malmer Stenergard last month, has a suggested implementation date of June 1st, 2025, if it goes ahead.

For work permit renewals, current rules (80 percent of the median salary) will continue to apply for any applications for extensions submitted to the Migration Agency by June 1st, 2026, at the latest.

Listen to the full interview with Muharrem Demirok below:

Or follow Sweden in Focus wherever you listen to podcasts. 

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WORK PERMITS

Business leaders: Work permit threshold ‘has no place in Swedish labour model’

Sweden's main business group has attacked a proposal to exempt some jobs from a new minimum salary for work permits, saying it is "unacceptable" political interference in the labour model and risks seriously affecting national competitiveness.

Business leaders: Work permit threshold 'has no place in Swedish labour model'

The Confederation of Swedish Enterprise said in its response to the government’s consultation, submitted on Thursday afternoon, that it not only opposed the proposal to raise the minimum salary for a work permit to Sweden’s median salary (currently 34,200 kronor a month), but also opposed plans to exempt some professions from the higher threshold. 

“To place barriers in the way of talent recruitment by bringing in a highly political salary threshold in combination with labour market testing is going to worsen the conditions for Swedish enterprise in both the short and the long term, and risks leading to increased fraud and abuse,” the employer’s group said.   

The group, which represents businesses across most of Sweden’s industries, has been critical of the plans to further raise the salary threshold for work permits from the start, with the organisation’s deputy director general, Karin Johansson, telling The Local this week that more than half of those affected by the higher threshold would be skilled graduate recruits Swedish businesses sorely need.   

But the fact that it has not only rejected the higher salary threshold, but also the proposed system of exemptions, will nonetheless come as a blow to Sweden’s government, and particular the Moderate Party led by Prime Minister Ulf Kristersson, which has long claimed to be the party of business. 

The confederation complained that the model proposed in the conclusions of the government inquiry published in February would give the government and political parties a powerful new role in setting salary conditions, undermining the country’s treasured system of collective bargaining. 

The proposal for the higher salary threshold, was, the confederation argued, “wrong in principle” and did “not belong in the Swedish labour market”. 

“That the state should decide on the minimum salary for certain foreign employees is an unacceptable interference in the Swedish collective bargaining model, where the parties [unions and employers] weigh up various needs and interested in negotiations,” it wrote. 

In addition, the confederation argued that the proposed system where the Sweden Public Employment Service and the Migration Agency draw up a list of exempted jobs, which would then be vetted by the government, signified the return of the old system of labour market testing which was abolished in 2008.

“The government agency-based labour market testing was scrapped because of it ineffectiveness, and because it was unreasonable that government agencies were given influence over company recruitment,” the confederation wrote. 

“The system meant long handling times, arbitrariness, uncertainty for employers and employees, as well as an indirect union veto,” it added. “Nothing suggests it will work better this time.” 

For a start, it said, the Public Employment Service’s list of professions was inexact and outdated, with only 179 professions listed, compared to 430 monitored by Statistics Sweden. This was particularly the case for new skilled roles within industries like battery manufacturing. 

“New professions or smaller professions are not caught up by the classification system, which among other things is going to make it harder to recruit in sectors which are important for the green industrial transition,” the confederation warned. 

Rather than implement the proposals outlined in the inquiry’s conclusions, it concluded, the government should instead begin work on a new national strategy for international recruitment. 

“Sweden instead needs a national strategy aimed at creating better conditions for Swedish businesses to be able to attract, recruit and retain international competence.”

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